BUDGET AND THE BUDGETARY CONTROL SYSTEM ON TERTIARY INSTITUTION’S FINANCIAL PERFORMANCE IN NIGERIAAbstract:
The study examined budget and budgetary control system on financial performance of tertiary institution in Nigeria. It specifically investigated the relationship between, Budget Planning Monitoring and Control, budget participation, budget evaluation, operating cash flow, current ratio, debt equity ratio and asset turnover in Nigeria. This study adopted ex-post facto research design. Relevant data regarding the variables under-study were extracted from the Central Bank of Nigeria (CBN) statistical bulletin. The study period covered fifteen (15) years spanning from 2004 to 2019, while error correction model was used to analyze the data. The findings revealed among other things that; there was presence of co-integration (long-run relationship) among the variables in the model, budget planning. budget evaluation, control and monitoring have significant relationship with financial performance in Nigeria, while budget participation is not significantly related to financial performance of the tertiary institution in the long run. The study therefore concluded that there is significant relationship budgetary control system and financial performance of tertiary institution in Nigeria, depending on the variable of interest. Likewise, the study recommended among other things that government should ensure efficiency and effectiveness in the budgeting and budgetary control system due to the insignificant influence of budget participation on financial performance both in the long run and short run which is a pure indication of poor budgeting and budgetary control in the country.