INFLUENCE OF BUDGETARY CONTROL ON FINANCIAL PERFORMANCE OF PUBLIC SECTOR ORGANIZATIONS IN OYO STATE

Abstract

This study examined the influence of budgetary control on the financial performance of public sector organizations in Oyo State, Nigeria. The study adopted a descriptive cross-sectional survey research design. To select population from senior financial management professionals, including accountants, budget officers, internal auditors, and directors of finance from 15 selected ministries, departments, and agencies (MDAs) in Oyo State. Using Taro Yamane's formula, a sample of 178 respondents was drawn through stratified random sampling, and 161 usable questionnaires were returned, yielding a response rate of 90.4%. Budgetary control was operationalised through three dimensions: budgetary planning, budgetary implementation, and budgetary monitoring while financial performance, was measured through budget variance rate, revenue performance index, expenditure management efficiency, and fiscal accountability. Data were analysed using descriptive statistics and multiple regression analysis. The regression model was found to be statistically significant (F = 87.34, p < 0.01), and the three dimensions of budgetary control jointly explained 62.6% of the variance in financial performance. Budgetary planning, budgetary implementation, and budgetary monitoring exerted positive and statistically significant influences on financial performance. The study recommended that Oyo State public organizations should institutionalize participatory budgeting, invest in real-time integrated financial management information systems (IFMIS), enforce treasury single account compliance, and build capacity among budget officers to strengthen both implementation and monitoring functions.