1 / 10

30 November, 1 and 2 December 2005 Maputo, Mozambique

Collaborative African Budget Reform Initiative 2 nd Budget Reform Seminar Managing Complexity: From Fragmentation to Coordination. 30 November, 1 and 2 December 2005 Maputo, Mozambique. THE NIGERIAN COUNTRY CASE STUDY.

theresawebber
Download Presentation

30 November, 1 and 2 December 2005 Maputo, Mozambique

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. Collaborative African Budget Reform Initiative2nd Budget Reform SeminarManaging Complexity: From Fragmentation to Coordination 30 November, 1 and 2 December 2005 Maputo, Mozambique

  2. THE NIGERIAN COUNTRY CASE STUDY The Implications for budget management of emerging from the previous regime into a democratic state, including technical, political economy and institutional complexity and challenges Unrealistic budgets lacking fiscal prudence. Short-term outlook for government spending. No predictability in government spending. Poor budget planning framework …Government spending scarcely reflected her priorities. No political buy-in. Weak monitoring, low accountability and transparency and no value for money. Dated legal framework.

  3. The Impact of Revenue Complexity on Budget Management • Boom and Burst – depends on forces outside the control of Government. • When revenue goes up, expenditure goes up, when revenue goes down, expenditure goes down. • Revenue made up of: • Crude oil sales. • Oil taxes. • Non-Oil taxes. • Independent revenue.

  4. Embraced certain fiscal rules. • Use sustainable oil price for planning. • Save earnings resulting from favourable crude oil price variance. • Distribute 50% of savings in year (t) in year (t +1) • Spend FGN share in year (t +1) on clearly identified projects. • Phase out distribution to avoid overhauling the economy • Limit deficits to such levels as is sustainable and can be financed. • Level out government borrowing. • Exit from Paris Club.

  5. The Impact of a Complex Federal System on Budget Management • System of Revenue allocation between Federal, State and Local Government. • Among States and Local Government. • Each tier’s budget is independent of each other constitutionally. • Hudge policy problem.

  6. Powerful Legislature and Budget Management • Budget process does not start on time. • FEC and NASS are not engage on time. • NASS sees the budget as Mr. President’s budget that does not take into account their yearning. • Add their own spending. • Capital Votes are not released on time.

  7. Issues around donor coordination • National Planning Commission – Aid Coordination. • FMF – Loans coordination. • Donor Funds insignificant in the budget process. • Donor funds are not reflected in the budget.

  8. Issues around clarity of roles and responsibilities between State Institutions • Budget Office has moved from NPC to FMF and vice versa over the years. • Multiple Agencies are involved in project monitoring and evaluation. • BOF is in the Ministry of Finance and reports through the Minister of Finance.

  9. The Difficulties associated with a complex legal framework and multiple funding channels for State Expenditure • MDAs get funding directly from Donor. • BOF provide counterpart funding. • Executive Prepare budget and submit to National Assembly. • National Assembly alters budget as deemed necessary. • MDAs go and lobby with National Assembly. • It creates corruption in the system. • Approval process is delayed. • Implementation of budgets are delayed.

  10. The Role of and Challenges for Budget Framework, Transparency, and the Budget Process associated with these issues • Makes preparation of the budget framework difficult. • Lack of transparency and openness in the process. • Budget preparation and implementation is delayed. • Breeds mistrust between Executive and Legislature. • Counterpart funds are not always adequately provided in the budget.

More Related