BUDGET FORMULATION AND IMPLEMENTATION IN NIGERIA UNDER A DEMOCRATIC SETTING: CHALLENGES AND PROSPECTS

Abstract

This study utilized secondary sources of data including the works of Ameh, M. (2010); Anyanwu, J.C (19970; Aruwa, S.A.S. (2006); Bankole, D. (2009); Bedian, G.A. (1987); Fiess, N. (2002); Igbuzor, O. (2004); Kwanashie, M. (2003); Nwabuko, C. (2004); Ohanle, J.C. (2010); Ojo, E. (2004); Omopariola, O. (2003); Perry, G. (2002); Udoma, U.U (20020; UNDP (2003); Ujo, A.A. (2002) e.t.c. The method of data analysis employed by the study was qualitative analysis. This involved a nonnumerical examination and interpretation of observations, for the purpose of discovering underlying meanings and patterns of relationships. The paper examines the process of budgeting in Nigeria since the advent of democracy in 1999 and identifies the challenges of budget formulation and implementation. Some of the challenges include: limited opportunities for the participation of the people due to inadequate information about budget; lack of political will to abide by stipulated rules and budget guideline; inadequate monitoring of budgets by the legislature; corruption; and over dependence on crude oil as a major revenue base. It recommends the strengthening of the capacity of democratic institutions that have the responsibility to monitor the formulation and implementation of budgets, promotion of transparency and accountability in the budgetary process, increased participation of relevant stake holders in the budgetary process, promotion of basic rights through the instrumentality of the budgets and enactment of the Freedom Of Information Bill (FIB) as some of the measures that can be employed to achieve effective and efficient budget formulation and implementation in Nigeria.