An examination of performance-based budgeting in Nigerian local governments: A study of Enugu East LGA
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Background of the Study
Performance-based budgeting (PBB) is an approach that links the allocation of public funds to the outcomes and results achieved by government programs and projects. This budgeting system is designed to ensure that government spending is more transparent, accountable, and effective, with an emphasis on performance metrics to assess the impact of government activities (Ogunleye & Fashina, 2023). In Nigeria, local governments play a crucial role in service delivery, infrastructure development, and poverty alleviation, yet they often struggle with budget inefficiency, poor accountability, and weak financial management. Enugu East Local Government Area (LGA), situated in the southeastern part of Nigeria, is one of the local governments where performance-based budgeting has been adopted as part of an effort to improve fiscal responsibility and ensure better service delivery to the community. This study aims to assess how performance-based budgeting is implemented in Enugu East LGA, its effectiveness in achieving desired outcomes, and the challenges faced during its implementation.
Statement of the Problem
Despite the adoption of performance-based budgeting in many Nigerian local governments, there is limited research on its effectiveness in improving budget outcomes at the local level. Enugu East LGA has implemented performance-based budgeting, but its impact on service delivery, transparency, and accountability remains unclear. The study will investigate whether this budgeting approach has led to better fiscal management, improved service delivery, and the achievement of strategic goals at Enugu East LGA.
Objectives of the Study
- To assess the implementation of performance-based budgeting in Enugu East LGA.
- To examine the impact of performance-based budgeting on service delivery and resource allocation in Enugu East LGA.
- To identify the challenges and limitations of adopting performance-based budgeting in Enugu East LGA.
Research Questions
- How is performance-based budgeting implemented in Enugu East LGA?
- What impact has performance-based budgeting had on service delivery and resource allocation in Enugu East LGA?
- What are the challenges faced in implementing performance-based budgeting in Enugu East LGA?
Research Hypotheses
- Performance-based budgeting improves resource allocation and service delivery in Enugu East LGA.
- Performance-based budgeting has a positive effect on transparency and accountability in Enugu East LGA.
- The challenges faced in the implementation of performance-based budgeting reduce its effectiveness in Enugu East LGA.
Scope and Limitations of the Study
This study will focus on Enugu East LGA and evaluate the implementation of performance-based budgeting in the local government. Data will be collected from official government reports, budgetary documents, and interviews with government officials. Limitations may include incomplete data, potential bias in self-reporting, and challenges in measuring performance outcomes.
Definitions of Terms
- Performance-Based Budgeting (PBB): A budgeting system that links government spending to measurable performance outcomes.
- Service Delivery: The provision of public services such as healthcare, education, infrastructure, and social welfare.
- Resource Allocation: The process of distributing available financial resources to various projects and departments within an organization.
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