MMDAs as development partners to the central government need to mobilize enough revenue locally to support the central government development agenda. Inadequate financial resources can undermine the effective implementation of developmental projects in MMDAs. Budgets are important as they prudently manage scarce financial resources and at the same time serve as a means of expenditure authorization, control and evaluation base. MMDAs in Ghana, prepare budgets but deal with it in lesser extent, unlike the profit-making organizations which consider budget and budgetary controls important element in their policies. It is against this background that this study was carried out to find ways by which MMDAS especially AEDA can use budgeting and budgetary controls as management tools to prudently enhance their financial management system for local development. The case study approach was used in the study. Interviews and questionnaires were used to solicit data for the study.
The research found out among other things that MMDAs prepare budgets and control the budgets. The research data evidently prove that in the case of Ada East District Assembly, this is true. However, poor budget formulation and implementation and low revenue generation base make it difficult for MMDAs to live up to their responsibility as partners to the central government in national development. Recommendations and suggestions have accordingly been made to improve upon budgeting and budgetary controls in MMDAs and the nation as a whole.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Decentralization
- Local Government in Ghana
- Responsibilities of MMDAs
- Financial Resources and Development
- Fiscal Decentralization
- ABOUT THE PROBLEM
- LITERATURE REVIEW
- CONCEPT OF MANAGEMENT CONTROL
- THE BUDGET
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This study explores the effectiveness of budgeting and budgetary controls as tools for enhancing financial management in Local Government Authorities (LGAs) in Ghana. It aims to understand how MMDAs can utilize these tools to optimize their financial systems for local development.
- The importance of budgeting for resource management and expenditure control in MMDAs.
- Challenges faced by MMDAs in achieving effective budgetary control, including poor budget formulation and implementation, and low revenue generation.
- The relationship between financial management and development outcomes in LGAs.
- The role of decentralization and fiscal autonomy in promoting local development.
- The need for robust revenue mobilization strategies to support LGA development plans.
Zusammenfassung der Kapitel (Chapter Summaries)
The introduction provides an overview of decentralization and its significance in development, focusing on the role of LGAs in Ghana. It highlights the importance of financial resources for supporting local development initiatives and the challenges posed by inadequate revenue generation.
The "ABOUT THE PROBLEM" section delves into the specific challenges facing MMDAs in Ghana, particularly the issue of budget deficits. It discusses factors contributing to these deficits, including poor data collection, lack of budgetary controls, and the disparity between revenue generation and expenditure.
The LITERATURE REVIEW section explores the concept of management control and its role in budgeting. It defines management control as a multifaceted process encompassing planning, coordination, communication, evaluation, and decision-making, all aimed at optimizing organizational resource utilization. The chapter further explores the different definitions and perspectives of budgeting as a tool for financial planning and control.
Schlüsselwörter (Keywords)
The study focuses on the application of budgeting and budgetary controls as tools for enhancing financial management in local government authorities. Key concepts include fiscal decentralization, revenue mobilization, local development, financial management, and budgetary controls.
- Quote paper
- Dr. David Ackah (Author), Makafui R. Agboyi (Author), 2014, Budgeting as a tool for enhancing financial management in local government authorities, Munich, GRIN Verlag, https://www.grin.com/document/283897
