EXAMINING THE IMPACT OF BUDGETING AND FINANCIAL CONTROL ON ACCOUNTABILITY IN NIGERIAN GOVERNMENT PARASTATALS

Abstract

The escalating cases of financial fraud and corruption among government officials and political office holders globally have raised concerns among scholars. Nigeria, in particular, has witnessed a surge in financial impropriety, emphasizing the need for financial control to ensure accountability and effective stewardship in government parastatals. Budgeting has emerged as a vital policy instrument for public and organizational management, facilitating resource allocation and utilization. Effective budgeting entails detailed planning, coordination, and financial measurement to guide operational activities and resource management. Budgeting plays a crucial role in government parastatals by enabling adequate planning, control, and coordination to fulfill their functions and responsibilities. It promotes efficient resource utilization and other essential functions, ensuring proper fiscal and economic management. However, the successful implementation of budgeting requires proper creation, efficient implementation, and continuous monitoring to assess performance. Financial control encompasses policies, procedures, methods, and internal audits designed to ensure compliance with organizational objectives and prescribed policies. It safeguards assets, maintains accurate accounting records, and provides reliable management information. Financial control in government parastatals involves regulating financial decisions and activities related to income, expenditure, assets, and liabilities, in line with budgetary provisions. Achieving accountability, efficiency, and optimal service delivery in government parastatals necessitates the establishment of robust financial control systems. Unfortunately, Nigeria has witnessed widespread financial improprieties, including mismanagement of public funds and corrupt practices by public officers. Limited financial control has contributed to improper allocation of resources, delayed budget implementation, and a lack of transparency and accountability. Timely budget preparation and implementation have been hampered by non-release or delayed release of approved bills for public expenditure, undermining the effectiveness of budgeting and financial control. This study aims to investigate the influence of budgeting and financial control in selected government parastatals in Nigeria, focusing on their impact on financial accountability and performance.