CHAPTER ONE
INTRODUCTION
1.0 BACKGROUND OF THE STUDY
In his budget of December 23, 2011 presented the year 2012 budget, there the governor of Enugu state governor Sullivan chime said that the thrust of the 2012 budget is poverty reduction of the people. The state government appreciated the dangers of delaying of delaying the narrowing of gay between the tow socio-economic order ,the rich and the poor so as to provide equal footing for both .
For proper integration of social and economic environment in the state ,it has become imperative to reduce unemployment and poverty in the state to the barest minimum . For us in Enugu state it meant drastic reduction in personnel cost ,recovery of government funds and properly filtered away during the civilian administration, increase in internal revenue generation ,judicious spending and accountability. Though ,a budget can be prepare simply on the basis of what was done on the previous year ,adjusted for any change in condition or scope of the activity that may be anticipate for the coming year, a soundly conceived budgetary plan should be such that will simulate the executive to take a more critical view of his own operation .
The fundamental difference between the public sector and private sector is that the later is organics and operated to make a profit for its owner while the former exists to provide services to its citizens substantially on a non-profit basis . The Enugu state Annual Budget like any other state in the federation consists of two segments: the recurrent expenditure and the capital expenditure .However the drastic collapse in oil revenue over the year is one factor that has seriously affected state budgets .
Also the recent federal government ban on the state from securing loan from external or internal sources and the heavy dependence on imports for essential raw material spare parts and capital goods has continued to affect the state budgeting . Others include unacceptable high rate of inflation and unemployment ,low productively ,and an adverse debt repayment position .it is this state of affairs that made Enugu state government to adopt the following strategies to achieve the derived goals .
A} Maximization of internal revenue by improving the revenue collection machinery and policies .
B} judicious management of expenditure so as to conserve scare fund .
C} concentration of attention on the execution and completion of some selected project in the various sector ; thereby avoiding the used mistakes of preaching scarce resources thing over tow many project and achieving little or nothing .
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