THE IMPACT OF BUDGET AND BUDGETARY SYSTEMS ON NATIONAL DEVELOPMENT IN SOUTHERN TARABA STATE, NIGERIA

This study examines the impact of budget and budgetary systems on national development in Southern Taraba State, Nigeria, covering the period from 2021 to 2024. Despite increased fiscal allocations by subnational governments, there remains a noticeable gap between budgetary intentions and tangible developmental outcomes in health, education, infrastructure, and public services. This research seeks to understand whether budgetary allocation effectiveness and the overall budgetary system contribute meaningfully to national development outcomes, including internally generated revenue and service delivery. The study adopted a survey research design, targeting residents across the seven Local Government Areas of Southern Taraba. A sample size of 233 respondents was selected using a convenience-systematic sampling technique. Data were collected using structured questionnaires comprising items on budget effectiveness, system transparency, development outcomes, and service delivery. The data were analyzed using descriptive statistics, Pearson correlation, and simple linear regression via SPSS. Findings revealed a statistically significant relationship between budgetary allocation effectiveness and sectoral development outcomes, as well as between budgetary system effectiveness and improvements in internally generated revenue and service delivery. However, the study also highlighted a substantial gap between citizens’ perception of budget processes and the reality of developmental gains on the ground, indicating weak implementation and monitoring mechanisms. The research recommends the institutionalization of community-based budget monitoring, deepening participatory budgeting processes, and linking capital releases to independently verified performance indicators. The study is anchored on Public Choice Theory, which frames budgeting decisions as the product of competing self-interests, thereby underscoring the need for transparent systems that align public officials’ incentives with development outcomes.