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THE EFFECT OF CHANGE IN POLITICAL ADMINISTRATION ON BUDGET AND BUDGET PLANNING

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF STUDY

Nigeria as a country has being under continous change politically; the issue of budget and budget planning and development varies from one political administration to the other. With the incoming of new political administration, a new budget planing and implemetation will be the order of the day.

Before we go deep into the study; we will first of all define budget: A budget  according to Olurankise , 2012 defined budget as a framework for revenue and expenditure outlays over a specified period usually one year.

In other words, budget can simply be defined as an instrument stipulating policies, it can also be a programme that aimed at realizing the overall development aims and objectives of a government. This aim varies from government to government; take a look at the past political era under the leadership of president Goodluck Ebele Jonathan to the new era under the leadership of president Buhari from the year 2015 till date. In this present adminstration the issue of budget is on the high side, from missing budget to budget padding and so on.

In very political regime, budget and budgeting development and implemmentation has brought about so many controversies to step by step orderly process for preparation and administration of budget in Nigeria. The concepts of budgeting and ideology varies from one political administration to the other. This variation continue to increase as a new adminstration takes over from the previous adminstration and so on.

Take a critical look at the 2013 budget, we see that the controversy placed on the national assembly from oil benchmark has limited the adminstration and passage of the 2013 budget.

The government agencies and other agencies incharge of spending can not spend or plan budget without the go ahead from the federal minmstry of finance under the warrant from the governor of the state or the preseident of the country.

It is to this very issue that the researcher wishes to carryout a comprehensive research on the effect of change in political adminstration on budget and budget planning in Nigeria.

1.2 STATEMENT OF RESEARCH PROBLEM

The change in political adminstration in Nigeria has had significant effect on budget planing and development; over the years, the change in political adminstration has had either limitation to budget planning or budget implemmentation. This planning and implemmentation has affected but the private and the public sectors in Nigeria. the change in political adminstration has  can have effect on the circulation of money.

The extent of  spending authorization here is only determined in the  functional cash flow forecast for the period when payments are expected as scheduled. During this particular phase of budget planning and implementation, there are a lot of possibilities for interventions and also manipulations having it in mind that government  officials have the discretionary power to choose which spending ministry or agency will be given the  authorization to spend. In Nigeria, budget planning and implemmentation  process includes the following:

1. budget preparation by the executive

2.  legislative approval and,

3.  implementation by the different ministry, department and parastatal of the government.

1.3 AIMS AND OBJECTIVE OF STUDY

The specific aims of this research work are:

1. to examine the effect of change in political adminstration on budget planing and implementation

2. to examine the relationship between change in political adminstration on budget and budget planning

3. to determine the roles of the legislative approval in budget and budget planning.

4. to determine the factors affecting budget and budget planning.

1.4 RESEARCH QUESTION

In order to achieve the above aims, the study came up with the following research questions. The research questions are stated as follows:

1. what is the effect of change in political adminstration on budget planing and implementation?

2. what is the relationship between change in political adminstration on budget and budget planning?

3. what are the roles of the legislative approval in budget and budget planning?

4. what are  the factors affecting budget and budget planning?

1.5 STATEMENT OF RESEARCH HYPOTHESIS

The research hypothesis are stated below as follows:

Hypothesis 1

H0: there is no significant relationship between change in political administration on budget and budget planning

H01: there is significant relationship between change in political administration on budget and budget planning

Hypothesis 2

H0: there is no mean difference in gender responses of the respondents that change in political adminstration affects budget planing and implementation

H1: there is  mean difference in gender responses of the respondents that change in political adminstration affects budget planing and implementation

1.6 SIGNIFICANCE OF STUDY

The research work will be of immense benefit to both the state and the federal government of Nigeria, it will also be of great importance to the minstry of finance, the people of Nigeria, students and other research that wishes to carryout a similar research on the above topic.

1.7 SCOPE OF THE STUDY

The study the effect of change in political administration on budget and budget planning covers the issues and prospects of the Nigeria budget from the past administration to the present adminstration.

1.8 LIMITATION OF STUDY

Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

 Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

1.9 DEFINITION OF TERMS

BUDGET: A Buget is a quantitative expression of a plan for a defined period of time. It may include planned sales volumes and revenues, resource quantities, costs and expenses, assets, liabilities and cash flows. It expresses strategic plans of business units, organizations, activities or events in measurable terms.

BUDGETING: Budgeting is the process of creating a plan to spend your money. This spending plan is called a budget. Creating this spending plan allows you to determine in advance whether you will have enough money to do the things you need to do or would like to do.

BUDGET PLANNING: Budgeting, planning and forecasting (BP&F) is a three-step process for determining and detailing an organization's long- and short-term financial goals. The process is usually managed by an organization's finance department under the Chief Financial Officer's (CFO's) guidance.

POLITICS: the activities associated with the governance of a country or area, especially the debate between parties having power.

POLITICAL ADMINISTRATION:

 The Politics-administration dichotomy is a theory that constructs the boundaries of public administration and asserts the normative relationship between elected officials and administrators in a democratic society.

REFERENCES

Afzal, M. and Q. Abbas,( 2012) “Wagner’s law in Pakistan: another look,” A Journal of Economics and International Finance, ( 2) 1, 12–19, Akpan, N. (2005) “Government Expenditure and Economic Growth in Nigeria: A Disaggregated Approach. CBN Economic and Financial Review”, 43(1). Alam, S., A. Sultana, and Butt M. S., (2010) “Does social expenditures promote economic growth? A multivariate panel co-integration analysis for Asian Countries,” European Journal of Social Sciences, (14) 1, 44–54 Barro, R.J. (1991) “Economic growth in a cross section of countries,” Quarterly Journal of Economics, (106)2, 407–443. Bingxin, Yu, Fan, S, and Saurkar, A (2009) “Does composition of government spending matter to economic growth?” in Proceedings of the International Association of Agricultural Economists Conference, Beijing, China, Castles, F.G and Dowrick, S. (1990) “Impact of government spending levels on medium term economic growth in the OECD, 1960– 1985,” Journal of Theoretical Policies, (20)1, 173–204 Devarajan, S, Swaroop,V and Zou, H. F (1996) “The composition of public expenditure and economic growth,” Journal of Monetary Economics, (37) 2, 313–344. Dilrukshini, W.A, (2004) “Expenditure and economic growth in Sri Lanka: co-integration analysis and causality testing,” Staff Studies, (34)1, 51–68.

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