THE ROLE OF BUDGETING IN TERTIARY INSTITUTIONS MANAGEMENT(A CASE STUDY OF THE UNIVERSITY OF UYO)
CHAPTER ONE
INTRODUCTION
Background of the study
Budgeting is essentially concerned with planning. According to Hausen .O. (1990). Dr. Jones discovered, failure of plan, either formally or informally, can lead
to financial disaster. Careful planning is vital to the health of any organization. If that is the case, what role does budgeting play in planning and control?
Simply put, plans identify objectives and action needed to achieve them.
Budgets are the actions needed to achieve them. Budgets are the quantitative expression of these plans. States in either physical or financial terms or both.
Thus a budget is a method for translating terms. As a plan of action budgets can be used to control by comparing actual outcome as they happen with the planned outcomes.
Furthermore, according to Professor Anya O. Anya April 28th 2006, guarding newspaper, the universities and the challenge of a knowledge is based on the
economy (2) the said “we have seen that economic and human development indices presently confirm that Nigeria is a very poor country where otherwise
immense resources and potentials have not been realized as a result squander and poor management. We have dedicated from the above points that planning budgeting and control is very essential in all sphere of endeavor be it public or private sectors. In
other words, the necessary uncertainty and complexity in the socio-political economic and public sectors of Nigeria society have been made it very difficult
for co-operate entities irrespective of the nature of their business (profit oriented or service oriented) coupled with the changes in social, economic, technological and political system to achieve optimal result without setting proper planned targets. With the trend of failure recently witnessed in the financial sector, arising from factors both internal external organizations and their management should ensure that they had decision about their future. The concept of economic scarcity of resources implies that economic units including tertiary institutions, parastatals etc. must stick to action satisfaction.
There may be no reason for government to establishment which the management are no strived to achieve viability for optimal result such establishments
should be deliberately abandoned in order to pave way for release for the pursuit of other more economically viable investments. We should realize that abandonment is a key to innovation but because, it frees the necessary measures and also it stimulates the search for the new ones that will replace the old ones.
However, it is for the sake of avoiding such abandonment that the researcher wanted to find out the impact of budget and budgetary control as technique to
managing the business dynamics to evolve long term survival strategies of tertiary institutions.
