Capital Budgeting and Its Relevance to Decision Making in Government (a Study of Eket Local Government Council)

The study evaluates the “Capital Budgeting and its Relevance to Decision Making in Government with references to Eket Local Government Councils as a case study. This was to determine capital budgeting process in government, capital budgeting technique that should be adopted or used for decision making in government council and the challenges facing capital budgeting process in government to achieve the objective of the study; descriptive and exploratory research designs were used for the study. Data from budgeting and planning department of Eket Local Government, that is, capital budget which consists of recurrent revenue and recurrent expenditure from 2022 – 2024 were used. A total of 25 questionnaires were administered to selective staff of 5 departments of the council of which 23 were completely filled and returned which represent 100% of the returned questionnaire in testing the hypothesis. Pearson Product Moment Correlation Co-efficient was applied to carryout the analysis as well as the t-test. Finding revealed that from the hypothesis between capital budgeting and its relevance to decision making in government and the council did embark on capital budgeting and follows its processes which in turn helps the councils to improve productivity and good governance. It therefore concluded that capital budgeting helped the council to determine the viability of project which in the long run helped to achieve good governance. Finally, it is recommended that staff of the council should be trained oh-capital budgeting since the significant proportion of the council expenditure is on long term project and local government council should set up monitoring team for regular purposeful and effective monitoring of capital project being executed.