Inter Local Government Capital Budget Execution Comparism.pdfVIP

American Journal of Economics and Business Administration 3 (3): 506-510, 2011 ISSN 1945-5488 © 2011 Science Publications Inter Local Government Capital Budget Execution Comparism F. Olurankinse Department of Accounting, Faculty of Social and Management Sciences, Adekunle Ajasin University, Akungba, Akoko Abstract: Problem statement: Unrealistic capital budgeting has long been the bane of social economic development in Nigeria and of course, at the local government level. Local governments are established with specific functions to assist the state and federal government to bring about effective rural development and good governance at the grassroots level. Approach: Both fiscal and physical evaluation of the performances of this tier of government in ondo state reveals a low level of performance both in terms of physical development and provision of social welfare services require to enhance the quality of life at the grassroots level. Those responsible for the management of funds at this level ascribed their poor performances to underfunding. This study therefore aims at finding out if truly this claim of underfunding is actually the cause of their poor performance. The study will look at the total capital budget allocation to some selected local governments visa is their actual spending. A sample of nine local governments was selected using random sampling technique based on their settlement pattern. Results: A comparative analysis was done to determine which local government