THE PRINCIPLES OF PUBLIC FINANCE MANAGEMENT AS TENABLE TO NIGERIA

Topics: Tax, Finance, Public finance Pages: 8 (1577 words) Published: May 13, 2015
THE PRINCIPLES OF PUBLIC FINANCE MANAGEMENT AS TENABLE TO NIGERIA

AN ASSIGNMENT
ON
PSD 3372
PUBLIC FINANCE ADMINISTRATION

PRESENTED
BY
VUG/POL/12/425
NNAGBORO VINCENT UZOCHUKWU
DEPARTMENT OF POLITICAL SCIENCE AND DIPLOMACY
VERITAS UNIVERSITY, ABUJA
(THE CATHOLIC UNIVERSITY OF NIGERIA)
BWARI – ABUJA.

SUBMITTED
TO
MISS BAKO (lecturer)
DEPARTMENT OF POLITICAL SCIENCE AND DIPLOMACY
VERITAS UNIVERSITY, ABUJA
(THE CATHOLIC UNIVERSITY OF NIGERIA)
BWARI - ABUJA.

MAY, 2015.

OUTLINE
Introduction
Operationalization of Terms
Public Finance Management
Principles of Public Finance Management as Tenable in Nigeria. Conclusion
Recommendation
References

Introduction
Finance, in general terms, is the raising of required fund. Finance is the function of raising fund and then properly managing the collected fund. Nickel, et. al. (2005) further stated that finance is a function in business (private/public) that acquires funds for the organisation and manages those funds within the organisation, these activities include preparing of budgets; doing cash flow analysis; and planning for the expenditure of funds’ assets. In the Nigerian state, the totality the manipulation, exploration, control and handling of the fiscal allocations and its generation is referred to as public finance management. Generally, in the Nigerian state and the Nigerian situation which is widely acknowledged to be thoroughly corrupt, there a great mismanagement and misappropriation of public funds as the leaders and politicians in office loot public funds, manipulate public expenditure and budget in their favour and for personal gains leaving the masses distraught, unemployed, poor and cheated. Due to the growing gap between the rich and poor in Nigeria as a result of mismanagement of public funds it has led to the increase in crime rate and low standard of living which is accustomed by economic under-development.

This paper aims at the analysis of the various principles of public finance management that are applicable and tenable in Nigeria to ensure an efficient public fiscal management in the country which would lead to efficient growth and development to the Nigerian state. Operationalization of Terms

Public Finance Management:
Finance deals with the analysing of fund requirement, identifying the sources of fund, selecting the best source by analysing their costs, raising fund from the best possible sources, utilizing the fund properly and then controlling the investment. Public finance management has been defined by several authors Ola and Offiong (2008) defined public financial management as “the measures put in place to control the people’s money or funds”. It is therefore the science and art of managing money. But this paper adopts the definition giving by Hamid (2013) as the system for generating and controlling public financial resources for effective and efficient public service delivery. It involves planning and budgeting, accounting and reporting, internal controls, audit and external oversight, among others with a view to: promoting availability of benefits to the greatest number of citizens. PRINCIPLES OF PUBLIC FINANCE MANAGEMENT AS TENABLE TO NIGERIA

Following our historical development since independence, the dimension of backwardness and poverty in our society, the idea of restoring sanity in the management of public resources through good public governance and effective financial management is one of the challenging issues both the present and future generations must tackle. The amount of public resources mismanaged in the country over the years is a net loss for the development of the nation since it has a real negative impact on the political economy of the country. Therefore this section of the paper aims to analyse those principles of public finance management that can be tenable to Nigeria and they include: Accountability:

In Nigeria, public office holders are not held accountable for...

References: Hamid, T.K. (2013) Good Governance and New Public Sector Financial Management Reform in Nigeria. A Paper Presented at the Executive Mandatory Professional Training Programme for Fellows of the Chartered Institute of Finance and Control of Nigeria (CIFCN). FCT Abuja.
Nickel, W.G.; McHugh, J. M. & McHugh, S. M. (2005). Understanding Business (7th Edition). New York NY: McGraw-Hill/Irwin, 10020.
Ola, R.O.F. & Offiong, O.J. (2008). Public Financial Management in Nigeria. Lagos: AMFITOP Books.
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Public Finance Paper
  • Essay on Principles of Finance Management Notes
  • Essay about Principles of Management
  • Principles of Finance Essay
  • Public Finance Essay
  • Essay on principles of management
  • Principles of Finance Essay
  • Public Finance Essay

Become a StudyMode Member

Sign Up - It's Free