The Impact of Budgeting System on Local Government Performance (A Study of Bosso Local Government)

Over the past two decades the word that was common term in all managers’ vocabulary was “budgets”. Budget is perhaps the most chosen course of action by the management and staff across all sectors in the institution. Management at all levels within the public, private sector has used the word budget as their shield or excuse when confronted or challenged about any decision. It is not uncommon to hear variations of the phrases “the budget does not permit”, or it’s not in the approved budget” all because of the budget compliance. This study aimed to evaluate the impact of budgetary system on local government performance using Bosso Local Government as a case point. In order to achieve this objective, survey design was adopted and the population of study comprises of 660 staff of Bosso Local Government. Agency theory was used as theoretical framework. Taro Yamane formula employed used to determine the sample size of 249. Stratified sampling technique was used as the sampling methods. Questionnaire was adopted for data collection and interview. Data collected were tested and analyzed using Chi-square test, frequency distribution and percentage analysis. The Chi-square calculated value of 415 showed a positive significant relationship between budgetary implementation and the development of Bosso local government. It was concluded that this study has provided empirical evidences that budget contributes immensely to organizational growth and development of Bosso local government. Thus, the study recommended that once a budget passes review, it should immediately go to the implementation which involves the release and actual disbursement for funds for the specified functions and projects. The programming of fund disbursement should be the duty of work and financial plan and request of allotment.