International Journal of Research and Innovation in Social Science (IJRISS) | Volume III, Issue VI, June 2019 | ISSN 2454–6186

Comparative Analysis of Zero-Based Budgeting and Incremental Budgeting Techniques of Government Performance in Nigeria

Sunny B. Beredugo¹, Joseph. U. B. Azubike¹ & Emmanuel E.Okon²

 ¹Department of Accounting, College of Management Sciences, Michael Okpara University of Agriculture, Umudike, Abia State, Nigeria
²Department of Business Management, University of Calabar Cross River State, Nigeria

Abstract:-The study revolves on the comparative analysis of zero-based budgeting and incremental budgeting techniques of government performance in Nigeria. The incremental budgeting applications in Nigeria have witnessed several frivolous expenditures in the budget that does not stand any reasoning or logic.The arrays of unjustifiable expenses on the incremental budgeting are quite devastating, zero-based budgeting is also costly.The study evaluated if there is a significant difference between the applications of zero-based budgeting and incremental budgeting techniques of time consumed, allocation of resources among others. The study was conducted within the budget units of selected federal government’s Ministries, Department and Agencies (MDGs) in Cross River and Akwa-Ibom States. The MDGs chosen include University of Calabar, and its teaching hospital; the University of Uyo and its teaching hospital; Federal Airport Authority of Nigeria in Calabar, Federal Metrological Agency, Uyo. A sample size of 239 staff members was used. Two hypotheses were tested using the analysis of variance and the independent t-test and it was discovered that there is a significant difference between them except of the innovative means of reducing cost that is associated with the budget; whereas, there is no significant differences between Zero-based and incremental budgeting technique government performances. It was therefore recommended that budgeting staff should be adequately trained in order to save time and cost in the future budgetary process. Cost incurred on the zero-based techniques should be curtailed and reduced to barest minimal and possibly used for economic development rather than for budget procedure.

Keywords: Zero-based budgeting, incremental budgeting, time consumed, allocation of resources, ease of preparation, innovation

I. INTRODUCTION

The reliance of government performance on budgeting techniques in Nigeria, just like any other country in the world has continued unabatedly. As a planning document, a budget enables businesses, governments, private organizations, and households to set priorities and monitor progress toward selected goals.