BUDGETING AND BUDGETARY CONTROL IN GOVERNMENT OWNED PARASTATALS(A CASE STUDY OF ANAMBRA STATE HOUSING & DEVELOPMENT CORPORATION)

The planning of budgeting involves management to anticipate future problems and difficulties and so take corrective action at an early stage. A budget, which is, used f or the purpose is described as “ a formal set of figures written as a piece of paper which is in itself merely a quantified plan for future activities’. Experience has shown that government parastatals in Anambra State have tended to perform poorly both in the formulation and implementation of their budgets. The inability of these parastatals to plan and accomplish budgeted goals is mainly related to their ability to apply control in their budgetary system. It is also as a result of the low level of understanding of the budgetary system by the middle and how management staff and the Lukewarm attitude of top management to the application of budgetary control, in their operations. Like all other organizations, Anambra State Housing Development Corporation prepares its budgets, which are aimed at the achievement of its goals (profit maximization). However, the realization of the objective of cost reduction and increased profit is usually not achieved because actual expense and revenue differ from usually not achieved because actual expenses and revenue differ from those budgeted, hence accounting for the variance that occur. This research work is envisaged to help in determining and highlighting the problems that militate against the application and effective utilization of budgeting and budgetary control in Anambra State Housing Development Corporation. Specifically, the following research questions are addressed; i. Does the corporation’s budget serve as a tool for planning, and the achievement of the organizations objective? ii. Is the appraisal of the corporation’s performs based on the budget? iii. Are the officers in charge of the budget control accountable for their objectives?