Finance As An Instrument Of Effectiveness In Public Administration

Finance As An Instrument Of Effectiveness In Public Administration

Abstract

The Lagos State Government will be used as a case study in this study to highlight finance as an instrument of effectiveness in public administration.

Because Lagos State is the smallest and most populous state in the Federation, the state government needs money to carry out its policies and programs and provide services to its residents.

The methods used to create their funds were thoroughly investigated, and it also discussed the issues influencing the state’s revenue generation and how they may be resolved.

All of this has been examined, and the outcome demonstrates that finance is a tool for effective public administration.

Chapiter 1

Introduction

1.1 Introduction To The Study

The terms “public” and “administration” make up the phrase “public administration.” “Public” is an adjective that describes “administration.” Public administration is the device and essential procedure used by the government to carry out its duties, claims Nnoli (2000:45). It is a network of interpersonal connections and related activities that stretches from the government to the lower-paid, helpless person tasked with staying regularly in touch with all the natural and human resources as well as all facets of society’s everyday life that the government is interested in. It is a system of roles and role relationships that defines the intentions and program of government in the most clear and practical terms possible and in as much detail as possible. This includes who is available internally and externally to accomplish them, where, when, and how they are to be accomplished; who will benefit from them; and finally, it is a system that causes these intentions and program to be realized in real life. According to Adamolekun, public administration is the study of and actions related to the management of government business. He also underlined that it can be used as either practice or knowledge. Public administration is both a practice and a body of knowledge that deals with the understanding of government administration (Bamgbose, 2002: 105). As a profession, it is concerned with the activities that fall directly under the government of any given society.

Public administration comes in a variety of forms, some of which include:

The oldest forms of public administration are departments or ministries of the government, which offer services to the public and collect taxes from them in exchange. Examples of such departments or ministries are the ministries of health, finance, and works.

Government companies were primarily established to make money, much like other private companies. They engage in any type of trade, such as banking, insurance, and so forth, and offer services to those who can afford them, with the government always holding more than 51% of the total share.

Government Agencies: These are organizations that the government sponsors to carry out a certain mission. Once they finish their task, they cease to exist, for example. The N.A.F.D.A.C., the N.D.L.E.A., the task force, and other organizations work to check and manage drugs and health-related issues.

Public corporations, such as N.N.P.C., are organizations established up by the government to provide services to the public at a fee.

Government funding will be necessary for the efficient operation of all these operations, which motivates us to finance.

The administration of money might be referred to as finance (Awiye, 1993:161).

As a subfield of economics, public finance focuses on the financial and economic operations of the public sector. It includes all of the actions taken by the government to raise money and allocate it to ensure the effectiveness of the state and the general welfare of the populace (Idowu, 2004:2).

Public finance is another name for the area of economics that examines how the government manages its revenue, spending, and debt while evaluating the outcomes of its policies. In other words, it attempts to study the consequences of government taxation and other sources of revenue and expenditure on the economic status of individuals, institutions, and the economy as a whole (Salami, 2003:233). It analyzes and evaluates the impact of governmental financial policies. Allocation of resources, income redistribution, and stabilization are some examples of subjects covered by public finance. Money that is at the government’s disposal must be used in public finance. The government is responsible for several things, including:

(a) To ensure the socioeconomic well-being of the populace by giving them access to some fundamental social services like schools, health centers, and so forth.

(b) To defend the populace against any internal or external assault, i.e., to safeguard the lives and property of the state’s citizens.

(c) Purchasing supplies for the government’s efficiency, i.e., funds to carry out its numerous tasks, projects, policies, and programs. Financing is needed to accomplish all of these.

In order to be affluent, the government must make substantial efforts to raise or generate money in an efficient manner and to use it wisely. These are the two sources of public funding: internal sources and external sources. Four (4) key choices are made in public finance: (a) public revenue; (b) public expenditure; (c) public debt; and (d) physical administration.

We must, however, discuss public finance management or financial management because the government’s funding is insufficient. As a result, financial management can be defined as the process of organizing and controlling a company’s financial resources, which includes the allocation, acquisition, and management of those resources (Kehinde and Abiola, 2005:2). According to M.P. Sharman, public financial management is the process of making money accessible for government activities and ensuring that it is used legally and effectively.

History of the State of Lagos:

The State (creation and transitional provision) Decree 14 of 1967, which divided the existing four (4) regions into 12 States, resulted in the foundation of Lagos State on May 27th, 1967. The administrative divisions (establishment) edict No. 3 of April 1968, however, allowed the state to begin functioning as an administrative entity on May 1st 1968. Its jurisdiction includes the city of Lagos as well as the four (4) former colony provincial administrative divisions of Ikeja, Ikorodu, Epe, and Badagry. The size of Lagos State is 358.861 hectares, or 3.577 square kilometers. The smallest state in the union is Lagos.

The public services of Lagos State:

All organizations that are present as a part of the machinery of government for the implementation of policies and programs and the provision of services to meet the needs of the people are referred to as public services. The Civil Service is defined as the group of men and women who work for the federal and state governments on a non-political career basis in order to provide advise and faithfully carry out their decisions (Bamgbose, 2005: 105). The local government service is the largest in the federation and is made up of 48 boards, 23 ministries, 4 commissions, and parastatal organizations under the current administration. There are 95,849 public employees, or. Local governments account for 20.000; primary schools for 28,121; non-teaching for 10,361; and civil servants for 47,361. The public service consists of public organizations that effectively carry out governmental directives.

1.2 Statement of the problem

Since finance is crucial to the operation of government business, it encounters numerous challenges, some of which will be mentioned in the study.

Revenue Distribution

The allocation of funds has been a major issue since 1970, with political considerations and formula criteria like jurisdictional population and state equality predominating over those related to need for economic development (Adedotun, 1991:103).

Tax Avoidance

(Idowu, 2004:52) defines tax as a levy placed on individuals, corporations, commodities, and services. It serves as a source of income for the government, which it utilizes to carry out its duties. Therefore, tax evasion refers to the act of individuals or business entities refusing to comply with paying their levies, also known as taxes. This is a serious issue that affects government finances in all countries.

Corruption

There is no sector that is exempt from this disease’s endemicity in the public sector. It is so serious that Nigeria has twice been named the world’s most corrupt nation by Transparency International. As a socioeconomic and political scourge that has wreaked havoc on society and the public sector, corruption has halted state development and relegated public service to a secondary role. It is also having an impact on the process of generating revenue because funds allocated are used for the leaders’ own self-interests and contracts are given to incompetent contractors as a result of the bribes they have accepted.

The government’s commercial operations and accounting are carried out manually, which makes the process tedious, error-prone, and inefficient.

1.3.1 Purpose Of The Study

The primary purpose of this research project is to examine the impact of finance on Lagos State’s public administration. The objectives are:

To investigate how finance affects the social and economic well-being of Lagos State residents.

To investigate the role that money plays in the effective dissemination, execution, and implementation of the Lagos State Government’s projects, policies, and programs.

To investigate how finances affect the government of Lagos State’s training and development of its workforce.

1.4.2 Hoposes

In order for the analysis intended in this study effort to have a logical and empirical conclusion on the effect of money in the public administration of Lagos – State, it is needed to set some assumptions and propositions to support it.

In other words, the aforementioned theories will be investigated.

(a) H0 = That tax avoidance can make it harder to bring in money.

H1: Tax avoidance cannot prevent the government from collecting money.

(b) H0’= That the finances of Lagos state may suffer as a result of insufficient funding allocation.

H1: It is impossible for a poor distribution of cash to harm Lagos State’s finances.

(c) H0’= That corruption may make it more difficult for the Lagos state government to generate revenue.

H1: Corruption cannot prevent the Lagos state government from raising money.

1.5 The Study’s Significance

The research is anticipated to add to the body of knowledge, particularly that which relates to the management of financial resources.

This study will go beyond the traditional boundaries of public administration in order to change and improve the policy utilized in financial allocation and to inform the people of Lagos State—students and public servants—about the value of money and how it contributes to raising citizens’ standards of life.

1.6 The study’s scope and limitations

The fundamental concept of this study is that public administration in Lagos State is dependent on finance and that performance levels in Lagos State Government are influenced by finance. Only the state of Lagos will be included in the study.

In addition, there would be limitations brought on by the expense of the research, the respondent’s lack of interest, and other environmental restrictions.

1.7.1 Term Definition

Public Administration: The study of these activities in the commercial world is referred to as public administration.

Finance: This refers to the funding of governmental economic activities, which concern governmental financial development and operation.

Governmental Financial Management