Research Article Open Access

Inter Local Government Capital Budget Execution Comparism

F. Olurankinse1
  • 1 Adekunle Ajasin University, United States

Abstract

Problem statement: Unrealistic capital budgeting has long been the bane of social economic development in Nigeria and of course, at the local government level. Local governments are established with specific functions to assist the state and federal government to bring about effective rural development and good governance at the grassroots level. Approach: Both fiscal and physical evaluation of the performances of this tier of government in ondo state reveals a low level of performance both in terms of physical development and provision of social welfare services require to enhance the quality of life at the grassroots level. Those responsible for the management of funds at this level ascribed their poor performances to underfunding. This study therefore aims at finding out if truly this claim of underfunding is actually the cause of their poor performance. The study will look at the total capital budget allocation to some selected local governments visa is their actual spending. A sample of nine local governments was selected using random sampling technique based on their settlement pattern. Results: A comparative analysis was done to determine which local government has the largest rate of capital budget execution. The result shows that the local government with the least capital allocation has the largest rate of capital budget execution. Conclusion: The study concludes that the performance of any local government is not a function of availability of huge capital funds but ability to utilize the scarce resources to achieve optimum result.

American Journal of Economics and Business Administration
Volume 3 No. 3, 2011, 506-510

DOI: https://doi.org/10.3844/ajebasp.2011.506.510

Submitted On: 15 August 2011 Published On: 21 October 2011

How to Cite: Olurankinse, F. (2011). Inter Local Government Capital Budget Execution Comparism. American Journal of Economics and Business Administration, 3(3), 506-510. https://doi.org/10.3844/ajebasp.2011.506.510

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Keywords

  • Capital budget
  • execution rate
  • local government
  • capital expenditure
  • capital budget execution
  • social amenities
  • scarce resources
  • budgeting techniques
  • major structure
  • investment decision
  • economic realities