GOVERNMENT OF ANAMBRA STATE OF NIGERIA

Transcription

1 GOVERNMENT OF ANAMBRA STATE OF NIGERIA Ministry of Economic Planning and Budget Government Secretariat Complex Awka Tel.: Reference Date 02/07/2013 His Excellency, the Deputy Governor; The Secretary to the State Government; The Head of Service; Honourable Commissioners; Chairmen of Statutory Commission; Special Advisers; All Permanent Secretaries; The principal Secretary to the Executive Governor; Accountant-General; The Auditor-General (State); The Auditor-General for Local Government; The Chief Registrar, Judiciary; The Chief Registrar, Customary Court of Appeal; The Chairman/Chief Executive, BIR; Executive Secretary, Judicial Service Commission; All Heads of Non-Ministerial Department/Parastatals; President ASATU Coordinator, Coalition of CSOs (COTAGG) 2014 BUDGET PREPARATION AND SUBMISSION CALL CIRCULAR 1.0 Introduction 1.1. The Ministry of Economic Planning and Budget hereby issues this Circular to call for the projected revenue, capital and recurrent expenditure proposals for the 2014 fiscal year (FY). This Circular also seeks to provide guidance and clarity on the criteria for admission of capital projects and programmes into the budget, and on how best to complete next Fiscal Year s budget proposals within the available budget ceilings and in compliance with the existing budget classifications/codes and chart of accounts All Ministries, Departments and Agencies (MDAs) as well as all other government institutions should ensure that this Call Circular is fully complied with in order to ensure that next year s budget is robust, realistic, credible and consistent with the Government s fiscal strategy, ANIDS and the MDGs. 1

2 2.0 General Guidelines In preparing the budget proposals for your Ministry/Department/Agency, the following general guidelines should be strictly observed: 2.1 Aggregate Resource Envelope of the State for 2014 Fiscal Year has been determined as shown below. This has been based on reliable economic and fiscal indices and realistically determined with the State s revenue forecast model. It is within this Aggregate Resource Envelope that all MDA budgets are formulated: IGR Federal Allocation (FAAC) VAT Capital Receipts Aggregate Resource Envelope N8,415,001, N50,303,809, N12,512,470, N15,851,000, N87,082,280, Budget ceilings for both capital and recurrent expenditure provided in this circular MUST be strictly adhered to. The budget ceilings are the maximum amounts that would be available to each MDA based on forecast revenues of the Government and therefore should not be exceeded in the estimation of the personnel costs, other recurrent expenditure estimates and the capital estimates. 2.3 Policies, targets and strategies being pursued by your organization should be affordable and thus consistent with your budget proposals. This means that your budget proposals should be both realistic and attainable, and as such should translate effectively into the attainment of your policy objectives and goals. 2.4 Revenue projections must be realistic and comprehensive. The revenue projections should include indicative estimates for two outer years of 2015 and On-going projects and their funding requirement must be considered in the first instance before new ones are admitted into the budget. Please be guided by the MDGs and ANIDS in prioritizing your projects. As much as possible, MDAs should reflect the outcome of the 2014 Budget Forum in their submissions. 2.6 Commissioners and Permanent Secretaries have the primary responsibility to ensure that estimates are in accordance with budget ceilings; adhere to the budget guidelines and formats; and are submitted on time to the Ministry of Economic Planning and Budget; and 2.7 All MDAs in preparing budget estimates, should be guided by the existing Rules and Regulations of the Civil Service and any other financial laws, rules and regulations of the State, including any other State or Federal Government Circulars as applicable to Anambra State. 3.0 Policy Thrust and Priorities for the Budget This is aimed at streamlining sectoral programmes and projects within the frame work of the medium term plan. Each sector and sub-sector has critical needs, the fulfilment of which will move the State to the next level in terms of socio-economic development. The various competing needs of different sectors should, for reasons of acute resource constraints, be prioritized and the programmes and projects 2

3 necessary to address them properly, sequenced in line with medium term framework. Specifically, the 2014 budget focuses on: 3.1 Accelerating and sustaining the tempo of implementation of pro-poor programmes in the State; 3.2 Ensuring that the budget is gender and socially inclusive; 3.3 Maintaining a peaceful and secure environment suitable for private investment; 3.4 Encouraging Public Private Partnerships (PPPs); and 3.5 Improvement of public financial management to ensure greater accountability and efficient public spending. 4.0 Revenue 4.1 Revenue Projections and Actuals A paramount principle of the Government is that the State Budget must be realistic and thus credible in regard to both its revenue and expenditure projections. All revenue generating MDAs are therefore advised to make realistic revenue projections based on all exploitable sources of revenue for the 2014 fiscal year. All revenue projections for the year 2014 should be submitted using Annexure I. Also indicate the actual monthly revenue generated up to 30 th June, Actual revenue for the preceding year should be shown in the appropriate columns on the template. Evidence of lodgements of all revenues collected to date in the immediate preceding year must also be made available to the Ministry of Budget and Planning (see Annexure I). 5.0 Recurrent Estimates 5.1 Recurrent Expenditure Returns: Recurrent expenditure returns should be carefully calculated and reflected in Annexure II. 6. Personnel Costs: 6.1 Generally, Personnel Costs should show the total salaries and allowances for all bona fide civil servants in each MDA. In order to have realistic personnel costs, the chief executives of the MDAs are required to ensure that every post being provided for is truly an established post as in Annex III. 6.2 The computation of staff personnel costs (salaries and allowances) should be based on the minimum wage using the salary chart supplied by the Office of the Head of Service. The nominal Roll, Annex IV is to be joined to Detailed Personnel Cost (Annex III). 6.3 MEDIUM TERM EXPENDITURE FRAMEWORK MDAs should also spell out their Medium Term projected recurrent expenditure for using Annexure V. 6.4 Other allowances attributable to Personnel Costs should be provided at the approved existing rates. The format for Personnel Costs Estimates should be in line with the 2013 Approved Estimates. The 3

4 supporting Nominal Roll, which should be certified as correct by your Head of Department, should be as per proforma in Annexure IV. Specific provision should be made for staff Leave Allowances based on staff salaries in line with the existing rates. Please note that Officer cadre posts will not be utilized for promotion of staff in the Executive/Assistant cadre and vice versa. 6.5 Overhead and Subventions Proposals for Overhead costs should be made in line with detailed apportioned Overhead Costs as approved for The proposals should reflect the actual position as evidenced from your Recurrent Expenditure Returns pattern up to 30 th June, Controlling Ministries should extend the call circular to the Parastatals under them and scrutinize properly the Personnel Cost and Overhead Cost Estimates proposals before making considered recommendations. Remember that some Parastatals have been merged to their various originating Ministries, such as Rural electrification etc. 6.6 Statutory Expenditure Ministries/Departments that have statutory bodies should prepare their own detailed Estimates of Statutory Expenditure, in line with control responsibility. 7.0 Other instructions In compiling the Personnel Costs, the following should be noted and observed: 7.1 The most current nominal roll should be used to project personnel costs; 7.2 No abbreviations will be allowed for any established post. Every post must be written in full to avoid confusion; 7.3 Nominal Rolls must reflect financial provisions made for officers only in the MDAs where they are paid, i.e. their pay points. Officers serving in non- scheduled establishments will be provided for in their parent Ministry/Department/Agency; 7.4 The authority backing such allowances is to be attached to the Organization s proposal; 7.5 Care should be taken in computing the Personnel Costs as the Ministry will neither tolerate mistakes/oversights made by Organizations nor undertake to make corrections on wrong submissions made. The practice by which Organizations ask for corrigenda after the approved estimates have been published based on their wrong submissions will no longer be entertained. All submissions on Recurrent Estimate should be sent to SSA Budget Office, Government House. For further information or clarification on Recurrent Estimate please contact SSA on Budget, Government House, Awka. 8.0 Capital Estimates 8.1 Capital expenditure projections should be guided by ANIDS and MDGs and should be done in accordance with the approved budget ceilings for each MDA. 8.2 In projecting Capital expenditures for Fiscal Year 2014, MDAs must be guided by the sector policy, strategies and targets and the Millennium Development Goals. Thus, priority should be placed on those projects that will impact positively on the welfare of the populace. 4

5 8.3 The Ministries, Departments and Agencies should accord priority to the completion of on-going projects/programmes before allocations are made for new projects. 8.4 At all times, Due Process must be followed in the procurement of goods and services and award of contracts during budget implementation to ensure value for money. 8.5 Monitoring of Capital Projects: In line with the reforms in the budgetary process and the need to ensure credible budget implementation and fiscal discipline, a schedule for the monitoring of the implementation of capital projects by the Ministry of Economic Planning and Budget should be completed as shown in Annex C. 9.0 General Notes on Capital Estimates In preparing capital estimates, attention should be paid to the following templates: 9.1 Annexure VI 2014 Draft Capital Estimates Format 9.2 Annexure VII Programmes/Projects Supported by External Agencies Including FGN and Development Partners 9.3 Annexure VIII Mid Year Report of 2013 Capital Expenditure Implementation 9.4 Annexure IX - Medium Term Capital Expenditure Projection ( ) Please be guided by the details as shown in the aforementioned templates Parastatals and Tertiary Institutions: The guidelines on the preparation of Revenue, Nominal Rolls, Personnel and Overhead Costs are also applicable to all Parastatals and Tertiary Institutions Budget Ceilings As indicated above, an important feature of the Budget Call Circular is the issuance of budget ceilings to the MDAs. This is to ensure that all MDAs prepare and submit realistic budget proposals in accordance with their priorities and with prior knowledge of the existing resource constraint. It is important to note that the budget ceilings were arrived at after a realistic projection of resource picture using the State s Revenue Forecast Model. Accordingly, each MDA expenditure ceiling must be seen as the absolute limit within which its budget proposal is formulated. Thus, attached to this Call Circular is the Detailed Overhead Costs (Annexure A), Capital Budget Ceilings 2014 (Annexure B), and Comprehensive Schedule of Bilateral Discussions for 2014 Capital Budget proposals (Annexure C) Formats and Templates: 12.1 MDAs are strongly enjoined to study carefully the formats and templates and exercise due diligence in providing all necessary information. Ministries/Departments are strongly advised to constitute Internal Draft Estimates Committees to consider proposals before the final draft is submitted. 5

6 12.2 The timetable for meetings for defence of your proposals is hereby attached. Please note that any proposals made that are not in compliance with the above guidelines will be rejected MDAs are hereby requested to submit their proposals for the 2014 budget in accordance with this Budget Call Circular and the attached formats and templates, five sets each, and soft copies (CD) on or before 10 th August, For further information or clarifications on Capital Estimates, please contact THE PERMANENT SECRETARY, MINISTRY OF ECONOMIC PLANNING AND BUDGET, JEROME UDOJI SECRETARIAT COMPLEX, AWKA. Please accept my best regards. Prof. Chinyere Stella Okunna Hon. Commissioner/Chief of Staff Ministry of Economic Planning and Budget, Awka 6

7 ANNEXURE I RECURRENT REVENUE PROJECTIONS, 2014 MINISTRY/NON-MINISTERIAL AGENCY Org/Sub/Org Details of Revenue Approved Estimates 2013 (N M) 2014 Proposed (N M) Actual Revenue Jan. June 2012 (N M) Remarks 7

8 ANNEXURE II RECURRENT EXPENDITURE RETURNS, JANUARY JUNE 2013 MINISTRY/NON-MINISTERIAL AGENCY ORGANIZATIONAL CODE: Financial Classification Code Details of Expenditure Approved Estimates 2013 Authorized Expenditure Jan. June, 2013 (Nm) Cumulative Expenditure to date Jan June, 2013 (Nm) Balance 8

9 ANNEXURE III DETAILED PERSONNEL COSTS MINISTRY/NON-MINISTERIAL AGENCY ORGANIZATIONAL CODE: Item No. Details of Expenditures ESTABLISHMENT FINANCIAL PROVISION N N 9

10 ANNEXURE IV MINISTRY/NON-MINISTERIAL AGENCY NOMINAL ROLL Item No. Estab Bodies. Present Estab Name of Officer Rank/ GL Date of Last Promotion Salary 2013 Salary 2014 Rent. Supp. Transport Allowance Other Allowance Total (10-12) Leave Allowance Remarks 10

11 ANNEXURE V MEDIUM TERM RECURRENT EXPENDITURE PROJECTIONS ( ) Proposed 2014 Proposed 2015 Proposed 2016 MDA N M N M N M Personnel Overhead Total Personnel Overhead Total Personnel Overhead Total 11

12 ANNEXURE VI 2014 DRAFT CAPITAL ESTIMATES FORMAT Sector Subsector.. Expenditure Org/Financial Code... Implementing Agency... Org/ Financial Code Project Title Project Description/ Justification Project Location MDG being Addressed Approved Estimates 2012 NM Actual Expenditure 2012 NM Actual Expenditure Jan-June, 2013 NM Proposed Expenditure 2014 NM Notes: (a) Location is either state-wide or a particular LGA--specify as appropriate (b) Indicate the MDG number from 1-8. There are 8 goals (c) Briefly describe the projects and provide justification for them (d) Projects should be tied to programmes which address specific development/sectoral objectives 12

13 Annexure VII PROGRAMMES/PROJECTS SUPPORTED BY EXTERNAL AGENCIES ( FGN, MULTILATERAL OR BILATERAL) Sector Subsector. Expenditure Org/Financial Code Implementing Agency.. Programme/Project Title Description of Programme/Project Approved Estimates 2012 (Nm) Actual Expenditure 2012 (Nm) GCCC Paid Jan- June 2013 (Nm) Actual Draw Down Jan- June 2013 (Nm) Proposed Allocation 2014 including GCCC (Nm) Notes: 1. Proposed Allocation should be broken down into Expected draw down and GCCC provisions 2. Programmes/projects involved must be backed by MOUs/PIAs 13

14 ANNEX VIII MID-YEAR REPORT OF 2013 CAPITAL EXPENDITURE IMPLEMENTATION PROGRESS Sector Expenditure Head Subsector Implementing Agency.. FINANCIAL CLASSIFICATION CODE PROJECT TITLE Approved Estimates 2013 N m Actual Expenditure (Jan June 2013) N m Physical Achievements (broken down into major activities under the Project) REMARKS (ON LEVEL OF ACHIEVEMENT) e.g / Erosion Control Programmes/projects in Anambra State 1, a) Conduct of Studies on 5 active erosion sites b) Completed 3 On-going Erosion Control Projects at Nsugbe, Iyiagu Awka, & Judiciary Complex Awka c) Commenced 2 No Erosion Control Projects at Oko & Ogwuari Nsugbe Final Reports written and submitted by Consultant Final Certificates prepared awaiting payments Mobilization Fee paid to the Contractors e.g / Neem Fertilizer Factory Amawbia Roofing level attained for factory and administrative buildings (80% level of completion achieved) Installation of equipment to be completed in the 4 th quarter of 2011 Note: This template justifies implementation progress and utilization of approved funds for the period January June

15 ANNEXURE IX MEDIUM TERM CAPITAL PROJECTION ( ) MINISTRY/NON-MINISTERIAL AGENCY Org/Financial code Project Title Project Description 2014 Nm 2015 Nm 2016 Nm 15

16 ANNEXURE A DETAILED OVERHEAD COSTS MINISTRY/NON-MINISTERIAL AGENCY ORGANIZATIONAL CODE: Financial code Project Description Amount Nm 16

17 2014 PROJECTIONS (RESOURCE PICTURE) =N BILLION Assumed Recurrent/Capital Expenditure Ratio = recognition of the reform standard. 40% : 60% based on actual trends overtime and in This translates to N billion for Capital Budget and N billion for Recurrent Budget. In the circumstance, we have a Capital Budget Ceiling of N billion which is spread to sectors according to priority and capital intensive nature of programmes and projects. The recurrent ceiling of N billion is spread to aggregated recurrent heads of expenditures based on actual trends over time. 17

18 ANNEXURE B 2014 CAPITAL BUDGET ENVELOPE FOR MDAS (A) ECONOMIC: FINANCIAL CLASSIFICATION SECTOR 2014 PROPOSAL N m CODE / Agriculture (Crops) / Livestock and Veterinary / Agriculture (Fisheries) / Agriculture (ADP) / Commerce & Industry 1, / Finance 2, / Environment (Forestry) / Land Transport (Road//Bridges), 16, Works / Rural Electrification / Science, Technology and Mineral Resources / Ministry of Transport (B) SOCIAL: FINANCIAL CLASSIFICATION CODE TOTAL ECONOMIC SECTOR 21, SECTOR 2014 PROPOSAL N m / Health 1, / Education 4, / Information, Culture & Tourism / Environment Health / Women Affairs and Social Development / Youth and Sports ( C) ENVIRONMENTAL: FINANCIAL CLASSIFICATION CODE TOTAL SOCIAL SECTOR 7, SECTOR 2014 PROPOSAL N m / Town and Country Planning / Environmental Development, Sewerage & Drainage 2, / Water Supply and Resources- 2, / Fire Service / Housing and Urban Development 1, TOTAL ENVIRONMENTAL SECTOR 6,

19 (D) GENERAL ADMIN.: FINANCIAL CLASSIFICATION CODE SECTOR 2014 PROPOSAL N m / Government House 8, / Deputy Governor s Office / House of Assembly / S.S.G. s Office / Head of Service / Justice / Ministry of Economic Planning & Budget / State Bureau of Statistics / Local Government and Chieftaincy Affairs / Office of the State Auditor General / Office of the Auditor- General for Local Government / Civil Service Commission / Judiciary (High Court) / Judiciary (Court of Appeal) / Judiciary Service Commission / Independent Electoral Commission TOTAL GENERAL ADMINISTRATION , AGGREGATE FIGURES 2014 PROPOSAL N m TOTAL ALL SECTORS (A+B+C+D): => 47, Contingency Reserve - 5% of total Planning Reserve - 5% of total Grand Total /Proposed Capital Budget Size 52,

20 ANNEXURE C COMPREHENSIVE SCHEDULE OF BILATERAL DISCUSSIONS FOR BUDGET PROPOSALS VENUES: RECURRENT ESTIMATES Office of the SSA (Budget), MEPB, GOVT HOUSE, Awka CAPITAL ESTIMATES Inter-Agency Room, Ministry of Economic Planning & Budget, Ground Floor, Jerome Udoji Secretariat, Awka DATES MDAs CAPITAL ESTIMATES (Time) Monday 19 th August 2013 Ministry of Women Affairs & Social Development 10.00am am Ministry of Youth and Sports 11.00am noon Tuesday 20 th August 2013 Ministry of Housing and Urban Development Government House; Special Duties & Transport 1.00pm pm 10.00am am Deputy Governor s Office 11.00am noon House of Assembly 1.00pm pm Wednesday 21 st August 2013 S.S.G. s Office 10.00am am Head of Service 11.00am noon Civil Service Commission 12.00pm pm Ministry of Justice 2.00pm pm Thursday, 22 nd August, 2013 Independent Electoral Commission 10.00am am Board of Internal Revenue; Accountant- General s Office 11.00am noon Office of the State Auditor General Office of the Auditor- General for Local Government 12.00pm pm 2.00pm pm 20

21 DATES MDAs CAPITAL ESTIMATES (Time) Friday 23 rd August 2013 Judiciary (High Court, Court of Appeal, Judiciary Service Commission) 10.00am am Ministry of Finance 11.00am noon Monday 26 th August 2013 Ministry of Economic Planning & Budget (Including State Bureau of Statistics) Ministry of Agriculture (Including ADP) Ministry of Commerce & Industry 1.00pm pm 10.00am noon 1.00pm pm Tuesday 27 th August, 2013 Ministry of Environment 10.00am noon Ministry of Lands, Survey & Town Planning 12.00pm pm Ministry of Works 2.00pm pm Wednesday 28 th August, 2013 Local Government and Chieftaincy Affairs Ministry of Public Utilities & Water Resources Ministry of Science, Technology & Mineral Resources 10.00am pm 11.00pm noon 1.00pm pm Thursday 29 th August 2013 Ministry of Health 10.00am am Ministry of Education 11.00am noon Ministry of Information, Culture & Tourism 1.00pm pm 21

22 ANNEXURE D TIME TABLE FOR REVIEW OF 2014 DRAFT RECURRENT ESTIMATES DATES MDAs RECURRENT ESTIMATES (Time) Monday 19 th August 2013 Deputy Governor s Office am Accountant-General s Office am Local Government Audit Exam Development Centre Special Duties 2.00 pm Tuesday 20 th August 2013 Ministry of Information am Ministry of Justice am Ministry of Science and Tech Government Press Wednesday 21 st August 2013 Board of Internal Revenue am Ministry of Youth and Sport am Judicial Service Commission Ministry of Housing Thursday 22 nd August 2013 Ministry of Works am Civil Service Commission am Min of Commerce and Industry Ministry of Local Government Ministry of Local Government 2.00 pm Friday 23 rd August 2013 Ministry of Health am Ministry of Education am State Audit Ministry of Environment Monday 26 th August 2013 Head of Service am Ministry of Lands and Survey am Ministry of Public Utilities Ministry of Planning & Budget Tuesday 27 th August 2013 Secretary to the State Govt Office am Abuja/Lagos Liaison Office am Ministry of Finance Ministry of Women Affairs Forestry 2.00 pm Wednesday 28 th August 2013 Legislature am Hospital Management Board am State Ind. Electoral Commission Chieftaincy & Town Union Matters Thursday 29 th August 2013 Government House am Ministry of Agriculture am Judiciary & Customary Court of Appeal Friday 30 th August 2013 Bureau of Statistics 9.30 am State Education Commission am 22