1 / 21

EXECUTIVE’S ROLE IN CHALLENGING THE BUDGET: THE NIGERIAN EXPERIENCE

EXECUTIVE’S ROLE IN CHALLENGING THE BUDGET: THE NIGERIAN EXPERIENCE. Presentation by Mr. C.D. Gali, Director Expenditure, Budget Office of the Federation, Nigeria 29 November 2006. OUTLINE. The problem stated Challenge framework and tools adopted by the Executive in Nigeria

erwin
Download Presentation

EXECUTIVE’S ROLE IN CHALLENGING THE BUDGET: THE NIGERIAN EXPERIENCE

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. EXECUTIVE’S ROLE IN CHALLENGING THE BUDGET: THE NIGERIAN EXPERIENCE Presentation by Mr. C.D. Gali, Director Expenditure, Budget Office of the Federation, Nigeria 29 November 2006 BOF 29 NOVEMBER 2006

  2. OUTLINE • The problem stated • Challenge framework and tools adopted by the Executive in Nigeria • Fiscal Rules and Limits • Establish Linkages • Value for Money • Reporting, Monitoring and Evaluation • Transparency • Impact of framework and tools on the budget BOF 29 NOVEMBER 2006

  3. THE PROBLEM STATED • Unsustainable spending • Large government deficits financed by monetary growth • Large recurrent spending and debt service costs • Poorly conceived projects and programs • Spending not properly linked to developmental priorities • Low implementation of the capital budget • Weak monitoring, auditing and reporting BOF 29 NOVEMBER 2006

  4. THE PROBLEM STATED • In Nigeria the Executive has developed a framework to guide, challenge & align budget proposals of spending agencies & provide information, with which budgets may be monitored & evaluated. • The framework adopted in Nigeria is presented here in the slides that follow. BOF 29 NOVEMBER 2006

  5. FISCAL RULES & LIMITS • USE OF FISCAL RULES & LIMITS TO MANAGE GOVERNMENT SPENDING • Oil price based fiscal rule • Deficit/GDP limit • Aggregate expenditure limit • Limits by major expenditure heads • MDA limits (Envelopes) BOF 29 NOVEMBER 2006

  6. FISCAL RULES AND LIMITS • MEDIUM-TERM REVENUE FRAMEWORK • Agree - • Key assumptions and targets • Revenue framework • MEDIUM-TERM EXPENDITURE FRAMEWORK • Agree - • Aggregate expenditure limit • Level of deficit and financing of deficit • Limits by major expenditure heads (that is, Statutory Transfers, Debt Service & MDA Expenditure) BOF 29 NOVEMBER 2006

  7. ESTABLISH LINKAGES BOF 29 NOVEMBER 2006

  8. ESTABLISH LINKAGES • LINKING ANNUAL BUDGETS TO LONG TERM STRATEGIES AND MEDIUM TERM SECTOR STRATEGIES • MEDIUM TERM OUTLOOK TO PLANNING • Medium-Term Revenue Framework • Medium-Term Expenditure Framework • Fiscal Strategy Paper • Medium Term Sector Strategies • Annual budgets with projects and programmes linked to medium term plans BOF 29 NOVEMBER 2006

  9. ESTABLISH LINKAGES • FISCAL STRATEGY PAPER • Prepare Fiscal Strategy Paper which documents/sets out - • Medium-Term Revenue Framework • Medium-Term Expenditure Framework • Medium-Term Sector Strategies (summarized) • Governments fiscal policy direction • MDA Expenditure Envelopes BOF 29 NOVEMBER 2006

  10. ESTABLISH LINKAGES • MEDIUM-TERM SECTOR STRATEGIES • Agree MTSS with MDAs • This entails assisting MDAs to align their goals, objectives and strategic initiatives to: • National Economic Empowerment and Development Strategies (NEEDS) • Millennium Development Goals (MDGs) • Long-Term Sector Strategy • Other strategic policy direction of Federal Government BOF 29 NOVEMBER 2006

  11. ESTABLISH LINKAGES • MEDIUM-TERM SECTOR STRATEGIES • Assist MDAs to: • Understand how NEEDS, MDGs and other high-level policy goals of the Federal Government should impact their goals and objectives • Set medium-term goals and objectives that are properly aligned with NEEDS, MDGs, etc. • Identify key initiatives (programs and projects) that they need to embark upon to achieve their goals and objectives as aligned with NEEDS and the MDGs. BOF 29 NOVEMBER 2006

  12. ESTABLISH LINKAGES • MEDIUM-TERM SECTOR STRATEGIES • Assist MDAs to: • Cost each initiative and phase them over the medium-term bearing in mind the indicative expenditure envelope of the MDA for the same period set out in the Fiscal Strategy Paper. • Define outcomes and outputs to be delivered to Nigerians in clear measurable terms • Agree how performance will be monitored & reported to Nigerians • Document all these in a MTSS Document. BOF 29 NOVEMBER 2006

  13. ESTABLISH LINKAGES • MEDIUM-TERM SECTOR STRATEGY • This was done using a four stage process, namely – • Preparatory • Strategy Sessions • Documentation • Review and “Defence” BOF 29 NOVEMBER 2006

  14. ESTABLISH LINKAGES • MEDIUM-TERM SECTOR STRATEGIES • This was done working with – • Sector Staff led by Minister and/or Permanent Secretary • Civil Society • Representatives of the Organised Private Sector • Consultants • Sector Experts • Relevant Committees of National Assembly • “MTSS Team” - BOF/FMF, OSSAP MDG, NPC, BPMIU, Women Affairs Ministry • Development Partners (UNDP, World Bank, DFID) BOF 29 NOVEMBER 2006

  15. ESTABLISH LINKAGES • MEDIUM-TERM SECTOR STRATEGIES • This was done for – BOF 29 NOVEMBER 2006

  16. ESTABLISH LINKAGES • PREPARE ANNUAL BUDGET • Issue Call Circular • Support MDAs to prepare their budget proposals • Receive budget submissions from MDAs • Review budget submissions to ensure that they are– • Within allotted expenditure envelopes • Consistent with the MTSS (for MDAs with MTSS) • In accordance with the Call Circular • Collate submissions and put in form suitable for submission to NASS BOF 29 NOVEMBER 2006

  17. Better control of payroll and overheads Nominal roll with detailed information on each employee (names, grade level/step, etc) Detailed breakdown of overheads cost components and units costs Automation of budget data capture and computation templates Integrated Payroll System (present being procured) VALUE FOR MONEY BOF 29 NOVEMBER 2006

  18. Deficit Revenue Aggregate Expenditure Detailed Payroll and O/H Cost Estimates MTEF ANNUAL BUDGET Sector Envelopes BUDGET Chart of Accounts MTSS Initiatives Performance Measures Warrant/AIE Mandate Due Process EXPENDITURE FINANCIAL MANAGEMENT SYSTEM Reporting Monitoring Audit Evaluation REPORTING, AUDITING, MONITORING & EVALUATION

  19. Publication of budget performance reports OPEN initiative led by OSSAP MDGs Engagement of Civil Society in budget monitoring and evaluation. Timely monthly returns to OAGF by MDA Monitoring and Evaluation fed back into planning process REPORTING, AUDITING MONITORING & EVALUATION BOF 29 NOVEMBER 2006

  20. TRANSPARENCY • WIDE PUBLICATION OF FISCAL AFFAIRS • Publication of – • Capital Warrants • Recurrent Warrants • 2007 Fiscal Strategy Paper • Guide to Understanding the Federal Budget • Medium-Term Sector Strategies • Annual Budgets BOF 29 NOVEMBER 2006

  21. IMPACT • Sustainable spending • Alignment of government spending with NEEDS and MDGs • Greater budget discipline • More participatory and transparent process • Improved budget implementation • Value for money BOF 29 NOVEMBER 2006

More Related