The essence of budgeting is to provide an essential element of control in an organization in order to facilitate the achievement of set objectives .The control process is the fundamental organization link between the manager and the other people in an organization in a non profit making organization output various with the objective with which they were established. The objective of public organization could be social and or development in nature
. however this does not means that public organization can not make profit if government policy changes to privatizing or commercializing them. The main structural problem of these type of organization is the sacrifice of the organization profitability for social efficacy which must be achieved in research institute Badeggi falls into this category.
With the use of budget as a control tool, there is Ned for planning a the performance of an organization. Planning as defined by C.I.M.A is an the establishment of objective and the formulation evaluation and selection of the formulation of the policies strategies tactics and action required to achieve these objective, by planning activities in advance more economical use is made of the organization resource and facilities and a fairly accurate estimates of it s future resources requirement can be determined.
One of the outstanding features of budgetary control is that policy plans resource s and activities of the organization are coordinated integrated and controlled to achieve the desired objectives.