IOSR Journal Of Humanities And Social Science (IOSR-JHSS) Volume 19, Issue 12, Ver. IV (Dec. 2014), PP 01-09 e-ISSN: 2279-0837, p-ISSN: 2279-0845. www.iosrjournals.org www.iosrjournals.org 1 | Page Assessment of the Impact of Icts ICTs on Budget Processing In MDAs of Ondo State, Nigeria Alade, M. Ezekiel 1 , Abiodun, Emmanuel 2 , Igbekoyi, Olusola Esther 3 1 Adekunle Ajasin University, Akungba-Akoko, Ondo State, Nigeria. 2 Ministry of Economic Planning and Budgeting, Ondo State, Nigeria. 3 Adekunle Ajasin University, Akungba-Akoko, Ondo State, Nigeria. Abstract: Budget in public sector is an important tool for planning and implementating policies and decisions to achieve social, economic and political objectives. Governments around the world are looking for avenues to provide better services to their citizens and to also reduce cost of governance and services provided by them. This is fundamental to increasing set up of ICTs in rendering governments services to the governed. However, bureaucratic way of handling budgeting process is assumed to be one of the challenges facing timely readiness of budget in the State MDAs. Since ICT has been deployed by governments to carry out many of its functions, specifically in processing budget of its MDAs, the study therefore examines the impact of the use of ICT on budgeting process to find out whether it has reduced government bureaucracy, prolonged budgeting period and the cost associated with budgeting processes in Public Sector. The study rely on primary data obtained from samples purposively selected from ‘the state’s’ MDAs and statistically analyzed using chi -square at 0.05 level of significance. The finding reveals that, ICT has significantly reduced budget processing time and cost related to the budget processing as well as fast-tracking timely readiness of the consolidated budget to be forwarded to the legislative arm. The study therefore suggests that government at all levels should see the use of ICTs for budget processing a must so as to earn reduction in associated cost in the long run and reduce the effect of bureaucratic feature of government on timely readiness of budget. Key words: ICTs, MDAs, Bureaucracy, Budget, E-budgeting. I. Introduction: In public sector, it is widely believed that budgeting process usually take a long period of time and that it requires high cost. Studies have shown that it takes little more than an hour for the Minister of Finance or Minister of Economic Planning and budgeting to present a new national budget to the Parliament but it takes more than a year to prepare such budget. Budget is an important tool for planning and implementation of policies and decisions to achieve social, economic and political objectives (Planning and Budgeting Process in Tanzania). As much as this is, its relevance and importance may be affected if the process is carried out under a stressful condition which may affect the viability of the process. Governments around the world are looking for avenues to provide better services to their citizens and to also reduce cost of governance and services provided by them. Information and Communication Technologies (ICT) is one of the innovations that have helped in nation building and development (Harindranath and Sien, (2004); Gatautis, (2008)) while its relevance in the aspect of budgeting process cannot be overemphasized. According to Adewoye & Akanbi (2012), ICT is a complex and heterogeneous set of goods, applications and services used to produce, distribute, process and transform information. The efficiency and effectiveness of ICT in term of speed and accuracy can be relevant in the public sector‟s budgeting process. As regard to the cost implication of the use of ICT on products, Adewoye & Akanbi further submitted that, ICT also brings about reduction of the cost of their products or services. A study carried out by Agbolade (2011) showed that there is a positive correlation between the use of ICT and Profitability. This shows some of the possible benefits that could be derived from the use of ICT in an establishment. It is clear fact that so much money would have been spent to acquire and put in place some sets of ICTs. It is therefore expected that there should be some returns on such investment. On the hand, government is noted with bureaucracy (i.e. a system of government characterized by specialization of functions, adherence to fixed rules, and a hierarchy of authority). Bureaucratic way of handling budgeting process is assumed to be one of the challenges facing timely readiness of budget. According to Ronald & Gary (1994), restructuring federal bureaucracy so that it “works better and cost less” was a major objective of the Clinton Administration . Probably that is why some governments are looking out for the „less cost‟ or cost effective way of governance. Since ICT has been deployed by governments to carry out many of its functions, specifically in processing budget of its Ministries, Department and Agencies (MDAs), there is need to examine if the use of ICT in budgeting process has reduced government bureaucracy, prolonged budgeting period and the cost