Adherence to the Principles of Transparency and Accountability in Governance, which is the cardinal objective of the Public Financial Management (PFM) Reform process as well as in compliance with section 10 Sub section (1) of the Public Financial Management Law (2020) that empowers the Ministry to issue appropriate guidelines, directions and instructions to MDAs on Budget Preparation and submission. I have the pleasure to issue call circular containing detailed requirements and expectations on the preparation and submission of the year 2024 budget proposals. The issuance of this instrument and detailed requirements contained herein signifies the commencement of the year 2024 Budget Process, where MDAs are expected to ensure compliance with the stipulated guidelines and instructions outlined in the succeeding paragraphs of this document.
The purpose of this circular is to request all Government Ministries, Departments and Agencies (MDAs); and other stakeholders to Prepare and submit their Proposed Revenue and Expenditure Estimates for the 2024 fiscal year. The proposal should capture Revenue, Personnel cost (establishments, basic salary, allowances and social contribution) Non-personnel Services (Overhead Costs) Debt services and Capital Expenditure including Capital Receipts as approved in the work plan.
It is imperative for all Revenue generating MDAs to comply with the existing Medium Term Revenue Strategy (MTRS) that set Medium Term Revenue Target (MTRT) on both statutory taxes, MDAs rates and levies, Capital Receipts as well as estimates of Corporate Social Responsibility shall be treated separately, and prepare effective cost proposal of it as agreed upon or approved in the work plan for the case of draw down. This is to allow adequate budgetary provision and subsequent tracking of performance in the Budget.
It is important also for MDAs to submit all Actuals on Revenue, including Capital Receipts, Expenditure incurred in the previous fiscal year of Jan – Dec 2022 and also Jan – Aug. 2023 period.
Equally, for the Sectors in the State Development Plan (KSDP), MDAs should note that 2024 Budget will be configured using NCoA under the guidance of Nigerian Governor’s Forum Template (NGF) for integration into Budget proposals. While sectors with Medium Term Sector Strategy (MTSS) shall abide by reviewed projects and programs for subsequent integration into their proposals. Further to the foregoing, training and capacity building are expected to hold.
SECTION II: REVIEW OF 2023 BUDGET PERFORMANCE
The half year performance of 2023 Budget shows that the total actual collection from the Federation Account Allocation Committee (FAAC) which consists of Statutory Allocation, VAT, and other Receipts was stood at Sixty One Billion, One Hundred and Thirty Eight Million, Five Hundred and Sixty Thousand , Four Hundred and Twenty Four Naira Only (N61,138,560,424.00) from January to June against Budget Estimate of One Hundred and Fifty Four Billion, Six Hundred and Sixty Two Million, Four Hundred And Sixty Eight Million, One Hundred and Thirty Two Naira, Eleven Kobo only. (N154,662,468,132.11 ) representing 40.0% achievement.
On the Part of Internally Generated Revenue (IGR), the collection is to the tune of Sixteen Billion nine hundred and Forty Seven million Seventy Six thousand six hundred and twenty eight naira Forty Seven kobo only (N 16,947,076,628.47 ) was collected for the period under review, against the Year approved Budget Target of Forty Billion, Three Hundred and Twenty Seven Million, forty Six Thousand, Eight Hundred and Fifty Four Naira Forty Seven kobo Only (N 40,327,046,854.47 ) which indicated 42% performance/achievement.
The IGR collection is commendable with hope that will be improved due to areas of Revenue opportunity in the state.