BUDGETING TECHNIQUES AND FINANCIAL PERFORMANCE OF PUBLIC SECTOR ORGANIZATIONS IN RIVERS STATE

Abstract

This study examined the relationship between budgeting techniques and the financial performance of public sector organizations in Rivers State. Budgeting techniques were operationalized through budgetary control and budget planning, while financial performance was measured using financial transparency and cost efficiency. The study adopted a cross-sectional survey research design and utilized a structured questionnaire to collect data from 95 respondents, of which 92 valid questionnaires were used for the analysis. The respondents were drawn from selected public sector organizations in Rivers State. Data were analyzed using Spearman's Rank Order Correlation Coefficient with the aid of the Statistical Package for Social Sciences (SPSS) Version 22.0 at a 0.05 level of significance. The findings revealed a significant positive relationship between budgetary control and financial transparency (rho = 0.742, p = 0.000). The study also found a significant positive relationship between budget planning and cost efficiency (rho = 0.705, p = 0.000). The study concluded that effective budgeting techniques significantly enhance the financial performance of public sector organizations by promoting prudent financial management, improving accountability, strengthening financial transparency, and ensuring efficient utilization of public resources. Consequently, the study recommended that public sector organizations should strengthen budgetary control mechanisms, adopt comprehensive budget planning practices, provide continuous training for budget and finance personnel, and periodically review their budgeting processes to improve financial transparency and achieve greater cost efficiency.