A budget is an estimate of anticipated revenue and expenditure for a fiscal year. In Ekiti State, the Ministry of Budget and Economic Planning (The Ministry) is saddled with the responsibility of initiating the budget preparation process; issue call circular; convene budget negation/envelope sharing meeting, pre-treasury board meeting, and treasury board meeting; coordinating preparation processes; produce and publish approved budget.
Call circular and invitation to meetings are usually addressed to the following:
All Honurable Commissioners,
The Secretary to the State Government,
The Head of Service,
All Permanent Secretaries,
Auditors-General (State and Local Governments),
All Directors-General,
All General Mangers/Executive Secretaries,
The Chief Registrar of the High Court of Justice,
The Clerk, State House of Assembly, and
All Heads of Extra-Ministerial Departments, Agencies and Tertiary Institutions.
Budget Allocation Sectors
Government functions are categorised into sectors for the purpose of allocation of budgetary provision. Each sector has a number of related MDAs which constitute sub-sector. The sectors are as listed below:
- Agriculture and Rural Development,
- Infrastructural Development,
- Industrial Development,
- Health Care,
- Gender Empowerment
- Information, Tourism, Sports and Youth Development,
- Education.,
- Governance A,
- Governance B,
- Law and Justice,
- Environment,
- Land and Housing,
- Finance.
The Process
(1) Issuance of Call Circular
The Ministry issues Budget Call Circular to all Ministries, Extra- Ministerial Departments, and other executing Agencies of Government requesting the submissions of the revenue and expenditure estimates for the following fiscal year. The circular also contains required format with detailed guidelines and instruction in compliance with Medium Term Expenditure Framework (MTEF) Strengthen Fiscal Transparency Accountability and Sustainability (SFTAS) and Ekiti-State Development Plan.
(2) Budget Negotiation/Sharing of Envelopes Meeting
This is Budget Negotiation meeting on sectorial allocation of capital and recurrent envelopes. The chair of the meeting is the Honourable Commissioner for Budget and Economic Planning, with Honourable Commissioner for Finance, Accountant-General, Auditors-General, Permanent Secretaries Ministry of Budget and Finance, Chair Internal Revenue Services and Director, State Budget Office on the high table. Other key participants all Accounting Officers, Directors of Finance and Accounts, Directors of Administration and Supplies, and Directors, Planning Research and Statistics.
Estimated figures, capital and recurrent, are allocated to each sector base on the policy/agenda and priorities of the Government. The figure is apportioned amongst the MDAs according to their priorities and scale of activity. There is usually room for participation and it is an opportunity for MDAs to air their views and lodge complaints, if any.
The most senior Accounting Officer in a sector is expected to coordinate and moderate the sectoral sharing/allocation on MDAs basis. The secretary, usually an officer of the Ministry Budget, observes the proceedings and takes notes.
Following consensus, Accounting Officers of participating MDAs in the sector append their signatures as a seal of agreement.
The allocation sheets of all the thirteen (13) sectors are then collated by the Ministry for further processing.
(3) Pre-Treasury Board Meeting
This meeting is chaired by the Honourable Commissioner for Budget. Key stakeholders are as listed in 2 above. The essence of the meeting is to afford opportunity to defend their proposals for consideration and/or inclusion in the budget. Estimated figures earlier agreed at the negotiation meeting is still subject to changes.
(4) Treasury Board Meeting
The chairman is the Governor. Also, the Deputy Governor, Honourable Commissioner for Finance, Honourable Commissioner for Budget, Secretary to the State Government, Permanent Secretary Budget, Political Heads and Accounting Officers are flanked by their directors. The Hon Comm Budget presents details analysis of the budget across all MDAs. Questions, comments, and suggestions are entertained from the audience and the press. The Governor thereafter makes general remarks and respond to issues raised.
(5) Presentation to of Draft Estimates to the State House of Assembly
The Governor presents the draft budget to the House for consideration and subsequent passage. Highlights of the presentation include expected revenue which consist of FAAC allocation, internally generated revenue and funds from other sources; Personnel Emoluments, Recurrent Expenditure, and Capital Expenditure.
(6) Budget Defence before Committee on Finance and Appropriation
The House of Committee on Finance and Appropriation invite all MDAs for defence. MDAs are expected to justify their proposed estimates for the following fiscal year. MDAs with complaints or additional requests for upward review may also make their cases known.
(7) Budget Defence Exercise by MDAs in Ekiti State House of Assembly
Next is the final defence of the draft budget before the House of Assembly. Here, critical questions are asked including the assumptions underlying the estimated figure. MDAs are expected to provide satisfactory answers to all questions and issues raised to scale through.
(8) Passage of Proposed Budget into Law
Following due diligence and consideration, and having fully satisfied, the House passes the budget into law. It then become appropriation law; a biding legal instrument that guides and regulates Government spending and a yardstick for performance evaluation.
(9) Governor’s Assent
After the budget had been passed into law, the Government will give his assent by signing the document to give full effect to the document for implementation
(10) Break down of Budgeted figures on the Budget platform.
Following Mr Governor’s assent, MDAs are expected to upload the breakdown of the approved budgetary provisions unto the budget platform for the Ministry of Budget
(11) Production, Circulation and Hosting of the Approved Budget
It the responsibility of the Ministry of Budget to produce and circulate copies of approved budgets to relevant stakeholder and hosting of the document of the official website of the Ministry and the State.
(12) Budget Implementation
The Ministry of Finance and Economic Development; and the State Treasury Office; and MDAs are expected to implement the budget as approved. Ministry of Budget, through its Project Monitoring and Evaluation would ensure compliance with full provision of the appropriation law.
Honesty