A Bill for an Act to enact the Nigerian Budget Reform Bill,2016
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The Nigerian Budget Reform Bill aims to improve Nigeria's budget process by: 1) Establishing strict timelines for formulation, approval, implementation and monitoring of the annual federal budget. 2) Requiring ministries and agencies to submit budget proposals by early July and appoint budget officers responsible for submissions. 3) Having the Budget Office consolidate and submit the budget to the Finance Ministry by early August for approval by the executive council and presentation to the National Assembly in September. 4) Allowing up to 2% contingency appropriations to the Finance Ministry to remedy shortfalls or unforeseen needs.
A Bill for an Act to enact the Nigerian Budget Reform Bill,2016
- 1. Nigerian Budget Reform Bill, 2016 A Bill For an Act to make provisions for a specific timeframe for delivery of the Budget process of the Federation of Nigeria and to stipulate the specific officials and procedures to by applied by Federal Government Ministries, Departments and Agencies (MDAs) apply for formulation, enactment, implementation, monitoring of each annual Federal Budget with a view to improving budget performance and development outcomes that are consistent with the currentzero budgetingprinciple ofthe FederalGovernmentofNigeria andforotherancillary matters. _____________________________ ARRANGEMENT OF CLAUSES ______________________________ Commencement Enacting Formula 1. PART I-FORMULATION OF THE BUDGET 2. PART II-ENACTMENT OF THE BUDGET 3. PART III-IMPLEMENTATION OF THE BUDGET 4. PART IV-MONITORING AND EVALUATION OF THE BUDGET 5. PART V-OFFENCES AND PENALTIES 6. PART VI-INTERPRETATION 7. CITATION SCHEDULES SCHEDULE A-Sample format of a model budget-percentage of budget to be allocated forHealth, Education, pro-poorprojectsandother headsofexpenditure, revenue, etc. SCHEDULE B-Timeframe and Consultation Process during Budget Enactment. SCHEDULE C-Timeframe and Format of Monitoring and Evaluation of Budget Form. SCHEDULE D-Format of a Budget Circular to be issued by the Minister of Finance SCHEDULE E-Format of a Budget Manual issued by Minister of Finance through Budget Office of the Federation SCHEDULE F-List of items approved for investment of public money by MDAs. SCHEDULE G-Formats of other types of Budget e.g. Supplementary Budget EXPLANATORY MEMORANDUM
- 2. Nigerian Budget Reform Bill, 2016 A Bill For an Act to make provisions for a specific timeframe for delivery of the Budget process of the Federation of Nigeria and to stipulate the specific officials and procedures to by applied by Federal Government Ministries, Departments and Agencies (MDAs) apply for formulation, enactment, implementation, monitoring of each annual Federal Budget with a view to improving budget performance and development outcomes that are consistent with the current zero budgeting and other budgetary principles of the Federal Government of Nigeria and for other ancillary matters. ENACTED by the National Assembly of the Federal Republic of Nigeria– Sponsor: His Excellency, Distinguished Senator Dr. Abubakar Bukola Saraki 1. 2. ( ) PART I-FORMULATION OF THE BUDGET The objectives of this Bill are as follows: (1) Improving the budget process by imposing compliance with strict timelines for the Budget process in Nigeria; (2) Improving the budget process by applying concrete indicators to measure the performance of the annual budget to ensure delivery of the expected development outcomes as set out in the Federal Governments Development Plan; (3) Improving the budget process by promoting clearness, accuracy and fiscal transparency; (4) Ensuring compliance with the current Federal Government’s policy of zero budgeting; (5) Ensuring the Nigeria’s budget process complies with the principles of gender budgeting, pro-poor budgeting and other international budgetary obligations that Nigeria is signatory to. The Budget Process calendar shall commence during the first week of June of every year when the Minister of Finance issues a Budget Circular to all the relevant Ministries, Departments and Agencies (MDAs). The Budget Circular shall be in the form specified in Schedule D of this Bill. Commencement Objectives of the Budget Reform Bill Commencement of the Budget Process- issuance of Budget Circular
- 3. Nigerian Budget Reform Bill, 2016 3. 4. 5. 6. 7. Every Ministries, Departments and Agencies (MDAs) shall submit its budget to the Budget Office of the Federation not later than the first week of July each year Three months after the commencement date of this Bill, the Permanent Secretary of every Ministries, Departments and Agencies (MDAs) shall appoint a Budget Certifying Officer. The Budget Certifying Officer shall be responsible for submission and defense of its budget to the Budget Office of the Federation. The Budget Certifying Officer shall hold not less than ten years cognate experience in budgeting. (copied from section 11 of Kosovo’s Budget Law. This will minimise “BUDGET PADDING” by specifying an official to be held responsible”). The Budget Office of the Federation shall submit the consolidated budget to the Federal Minister of Finance not later than the first week of August each year. The Federal Minister of Finance shall in turn submit the consolidated budget to the President and the Federal Executive Council not later than the second week of August of each year. The President shall submit the Budget to the National Assembly of Nigeria not later than the first week of September each year. On the time of submission of the Budget, the President shall deliver a Budget speech to the National Assembly followed by a three hour question and answer session. In order to realise the services and objectives stated in the annual Budget/Appropriation Bill, to remedy any appropriation shortage or to perform services not foreseen in the Budget, the contingency appropriation not to exceed two percent of the Budget appropriation may be allocated to the Federal Ministry of Finance (copied from Article 23 of the Budget Law of Turkey, 2003) Submission of Budgets of MDAs to the Budget Office of the Federation Budget Certifying Officer Submission of Budget by the Budget Office of the Federation and the Federal Minister of Finance. Submission of the Budget by the President and the President’s speech to the National Assembly. Contingency Appropriation
- 4. Nigerian Budget Reform Bill, 2016 EXPLANATORY MEMORANDUM This Bill seeks to make it mandatory for the officials, Ministries, Departments and Agencies (MDAs) of the Federal Government of Nigeria to apply a specific timeframe, consultation process, transparent and verifiable indicators for measuring the budget performance in undertaking the budget process in line with the current zero budget policy and other relevant international budgetary obligations such as gender budgeting principles that Nigeria is signatory to. The overall aim is to promote achievement of the development outcomes and objectives of the budget process as opposed to the current inefficient and ineffective public financial management and budgeting in particular.
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