The National Assembly has identified 15 key reform strategies,
including the adoption of a budget calendar which will begin with the
submission of the Medium Term Expenditure Framework (MTEF) by the
second week in July and end with the President signing the
Appropriation Bill into law by third week of December every year.
The strategies according to a statement signed yesterday by the Media
Office of the President of the Senate, also include provision of laws
on development plans by the Federal Government are aimed at easy and
timely preparation of the budget and its efficient implementation.
The measures contained in a report submitted to the Senate President,
Dr. Abubakar Bukola Saraki by the Senator Ali Ndume-led technical
committee on the reforming the budget process in Nigeria, proposed a
budget calendar that will ensure that the President assents to the
appropriations law by third week of December while the Medium Term
Expenditure Framework (MTEF) is submitted in the second week of July
as the first step in the budget process.
The report to be discussed at plenary by the Senate also include
amendments of the relevant sections of the Constitution and extant
laws as well as enactment of new laws to improve the country's
budgetary process and align it to international best practices.
Other key recommendations in the report submitted last Thursday
include the proposed provision of a legal backing for national
development plans, and enactment of organic budget law to fix a
realistic budget calendar.
According to the report, the broad strategies aimed at improving the
budget process "revolve around reforming laws and frameworks for
budget formulation, enactment, and implementation, aligning the budget
process to international best practices, strengthening capacities, and
institutions for budget formulation and implementation, and
strengthening the revenue base for budget implementation."
Some of the key reform strategies for budget preparation are:
* Alter Section 81(1) of the 1999 Constitution and amend Sections 11
and 14 of the Fiscal Responsibility Act (FRA) to provide for a fixed
and realistic budget calendar by which the President will present the
budget to tue National Assembly by the first week of September,
considered and passed by by 30th November and assented to by the
President by the second week of December.
* Provide legal backing for development plans to serve as basis for
the annual budget and ensure continuity of development plans. In this
regard, complete the legislative actions initiated for the enactment
of laws: "Development Planing Act" and "Project Implementation and
Continuity Act", pending in NASS.
* Amend Sections 13-18 of the Fiscal Responsibility Act to link MTEF
with a development plan. Then: have a long term (10-15 years)
development plan to be implemented with three year MTEF and
Medium-term Sector Strategy (MTSS). National Assembly to support the
development plan with a resolution and ensure that the annual budget
is linked to it.
* Amend the FRA to enlarge the list of stakeholders to be consulted
during the budget preparation process. Then, there should be
pre-budget consultation between the legislature and the executive as
well as between the executive and the public. And during the budget
defense by the MDAs before the Committees, relevant stakeholders
should be invited.
* Enact an organic budget law that puts together all laws relating to
the budget, including a fixed and realistic budget calendar and a
pre-Budget Statement.
* Alter Section 162 of the Constitution recognize saving by the three
tiers of government through the Federation Account and provide legal
backing for Excess revenue savings to enable he country save revenue
windfalls and stabilize government expenditure during fiscal crisis.
* Develop a budget manual. The budget manual should include the
procedure for public participation in the budget process and public
access to budget information during the budget preparation process.
* Amend Section 19 of FRA to include project documents in the list of
budget documentation; amend Part III of the FRA to provide for
reporting standards and information sharing arrangements.
* Provide effective timelines for monthly and quarterly financial and
non-financial reports. Enact a law to compel all MDAs to upload their
budget-related information on a dedicated website.
* Develop and publish criteria or methodology for determining the
aggregate expenditure estimate and its allocation to sectors and line
items. Expand the information content of the Budget Call Circular to
include the modalities for public participation in the budget
preparation process.
* Develop the capacity of MDAs and other relevant stakeholders to
effectively apply the zero-based budgeting technique or any other
performance-based technique that may be adopted.
The committee also urged the National Assembly to strengthen the
capacity of its committees in the area of budget scrutiny and
appraisal through helping members and the and staff to undergo
training and enlightenment programme on the economy and budget
appraisal.
Institutions of the National Assembly like the National Institute for
Legislative Studies (NILS) and National Assembly Budget Office (NABRO)
are also to be equipped to effectively assist committees with sound
budget analysis.
END
including the adoption of a budget calendar which will begin with the
submission of the Medium Term Expenditure Framework (MTEF) by the
second week in July and end with the President signing the
Appropriation Bill into law by third week of December every year.
The strategies according to a statement signed yesterday by the Media
Office of the President of the Senate, also include provision of laws
on development plans by the Federal Government are aimed at easy and
timely preparation of the budget and its efficient implementation.
The measures contained in a report submitted to the Senate President,
Dr. Abubakar Bukola Saraki by the Senator Ali Ndume-led technical
committee on the reforming the budget process in Nigeria, proposed a
budget calendar that will ensure that the President assents to the
appropriations law by third week of December while the Medium Term
Expenditure Framework (MTEF) is submitted in the second week of July
as the first step in the budget process.
The report to be discussed at plenary by the Senate also include
amendments of the relevant sections of the Constitution and extant
laws as well as enactment of new laws to improve the country's
budgetary process and align it to international best practices.
Other key recommendations in the report submitted last Thursday
include the proposed provision of a legal backing for national
development plans, and enactment of organic budget law to fix a
realistic budget calendar.
According to the report, the broad strategies aimed at improving the
budget process "revolve around reforming laws and frameworks for
budget formulation, enactment, and implementation, aligning the budget
process to international best practices, strengthening capacities, and
institutions for budget formulation and implementation, and
strengthening the revenue base for budget implementation."
Some of the key reform strategies for budget preparation are:
* Alter Section 81(1) of the 1999 Constitution and amend Sections 11
and 14 of the Fiscal Responsibility Act (FRA) to provide for a fixed
and realistic budget calendar by which the President will present the
budget to tue National Assembly by the first week of September,
considered and passed by by 30th November and assented to by the
President by the second week of December.
* Provide legal backing for development plans to serve as basis for
the annual budget and ensure continuity of development plans. In this
regard, complete the legislative actions initiated for the enactment
of laws: "Development Planing Act" and "Project Implementation and
Continuity Act", pending in NASS.
* Amend Sections 13-18 of the Fiscal Responsibility Act to link MTEF
with a development plan. Then: have a long term (10-15 years)
development plan to be implemented with three year MTEF and
Medium-term Sector Strategy (MTSS). National Assembly to support the
development plan with a resolution and ensure that the annual budget
is linked to it.
* Amend the FRA to enlarge the list of stakeholders to be consulted
during the budget preparation process. Then, there should be
pre-budget consultation between the legislature and the executive as
well as between the executive and the public. And during the budget
defense by the MDAs before the Committees, relevant stakeholders
should be invited.
* Enact an organic budget law that puts together all laws relating to
the budget, including a fixed and realistic budget calendar and a
pre-Budget Statement.
* Alter Section 162 of the Constitution recognize saving by the three
tiers of government through the Federation Account and provide legal
backing for Excess revenue savings to enable he country save revenue
windfalls and stabilize government expenditure during fiscal crisis.
* Develop a budget manual. The budget manual should include the
procedure for public participation in the budget process and public
access to budget information during the budget preparation process.
* Amend Section 19 of FRA to include project documents in the list of
budget documentation; amend Part III of the FRA to provide for
reporting standards and information sharing arrangements.
* Provide effective timelines for monthly and quarterly financial and
non-financial reports. Enact a law to compel all MDAs to upload their
budget-related information on a dedicated website.
* Develop and publish criteria or methodology for determining the
aggregate expenditure estimate and its allocation to sectors and line
items. Expand the information content of the Budget Call Circular to
include the modalities for public participation in the budget
preparation process.
* Develop the capacity of MDAs and other relevant stakeholders to
effectively apply the zero-based budgeting technique or any other
performance-based technique that may be adopted.
The committee also urged the National Assembly to strengthen the
capacity of its committees in the area of budget scrutiny and
appraisal through helping members and the and staff to undergo
training and enlightenment programme on the economy and budget
appraisal.
Institutions of the National Assembly like the National Institute for
Legislative Studies (NILS) and National Assembly Budget Office (NABRO)
are also to be equipped to effectively assist committees with sound
budget analysis.
END
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