BUDGETING AND FISCAL ADMINISTRATION IN DEVELOPING ECONOMIES: A COMPARATIVE STUDY OF SELECTED SUB SAHARAN AFRICAN COUNTRIES

SOURCE:

Faculty: Management Sciences
Department: Accountancy

CONTRIBUTORS:

Ezinando, E. E. E.
Osisioma, B. C.

ABSTRACT:

This study examines budgeting and fiscal administration in developing countries, with evidence from selected countries in Sub-Saharan Africa. This is predicated on the backdrop that the problem of budgetary allocations/mismatch and variances has remained a recurring decimal across countries in Sub-Saharan Africa, yet only few studies have been conducted to ascertain the cause of such trends, by establishing the extent to which budgeting of countries in the region have been affected by fiscal deficit financing. In order to achieve the objective of this study, research questions and hypotheses were formulated. This study relied on secondary data which were obtained from the statistical bulletin of the African Development Bank and that of the Central Banks of the selected countries for a period of fifteen (15) years spanning from 2000 – 2014. By adopting the expost-facto research design, the data obtained for this study were presented and analysed by means of the correlation and regression techniques. Findings from this study indicated among others that while tax revenue had significant relationship with government budgets among countries in Sub Saharan Africa, government budgets across the region were not found to have significantly affected by non-tax revenue of countries in Sub Saharan African. We also found that prior year expenditure (capital and recurrent) and fiscal deficit financing respectively had significant impact on the budgets of countries in Sub-Sahara Africa. On the basis of the above findings, the study recommends among others that concerted efforts must be made by the governments of the region to reduce the cost of governance and duplication of offices and portfolios that have over the years increased government spending. Also, efforts must be made to discourage external borrowings to reduce the costs associated with such borrowings/debt profile, by looking inwards towards revenue generation from within.