Role Of Budgeting In The Present Economic Situation

Budgeting have a role to play in this present economic development of Nigeria. Budgeting which is defined as “A financial statement prepared and approved prior to a defined period of true of the policy to be purpose of attaining that period for the purpose of attaining a given objectives is primarily a process of planning and control. A well prepared budget provides management with a planned programme based on research by the entire organization. In addition, a carefully planned budget, provides owing to co-ordination the various actions of the organization. Budgeting is the most comprehensive financial technology widely used within an organization. When it is properly applied as a management process and toll it unites all parts of the institution and all aspects of management task into one complete management approach to profitability.
Budgeting positions one’s mind of the actual result or outcome with the predetermined plan. In other words, with good budgeting, the result of every effort can be forecasted. Through a good budgeting by exports there will be a standard economy, Budgeting reduces wastage of manpower, it also reduces wastage of finance.
Therefore, in order to avoid problems in carrying or preparing budget, budgeting should be carried out exactly there way it is being laid down by the experts if there is any correction or variation to be made in future, the experts should be involved.