Mrs Ahmed gives MDAs August 28 deadline for budget estimates
The federal government is to spend the sum of N12. 658 trillion in 2021, going by the 2021 budget which is being prepared by the Federal Ministry of Finance.
According to the Budget Call Circular referenced HMFBNP/2000/EXP/S.800/1/3/35 by the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, Ministries, Departments and Agencies (MDAs) have up to August 28, 2020 to make their submissions online using the Government Integrated Financial Management Information System (GIFMIS) Budget Preparation Module.
This is in addition to the hard copies to be endorsed by the Chief Executive/Accounting Officers, attesting to their correctness and compliance with the circular.
The N12. 657 trillion is to be financed by a revenue estimate of N7. 498 trillion, leaving a deficit of N5. 160 trillion.
Non-Debt Recurrent expenditure is estimated to take N5.746 trillion and a capital budget of N3.086 trillion.
MDAs’ capital expenditure is allocated the sum of N1. 485 trillion and N674. 11 billion for multilateral and bilateral project-tied loans.
Similarly, N234. 19 billion has been allocated to Capital Supplementation; N337. 06 billion for grants and donor-funded projects; N335. 59 billion for Government Owned Enterprises (GOEs); and N20 for SIP.
Debt Service has been allocated N3. 124 trillion. Out of this, domestic debt is allocated N2. 183 trillion; while foreign debt is expected to take N940 billion and a Sinking Fund of N220 billion provisioned to retire maturing loans.
The sum of N481. 41 billion is provisioned for Statutory Transfers and another N420 billion allocated to the Special Intervention Programme (SIP).
Sectoral allocations indicated a priority for MDAs grouped under Economic Development with the Ministry of Works and Housing receiving the highest allocation of N272. 061 billion; followed by Power with N178 . 382 billion; and Transport with N120. 043 billion.
However, Defence (Ministry of Defence, Army, Air force and Navy) also got N120. 043 billion.
The Ministry of Health was allocated N93. 678 billion; Water Resources, N84. 142 billion; Agriculture, N83. 862 billion; while Education received N80. 216 billion.
Mrs. Ahmed said that the 2021 budget would focus on the completion of on-going projects and that MDAs should avoid introducing new projects.
According to her, in line with the Zero Based Budget (ZBB) policy of the administration a lists of all projects and their status: on-going or abandoned should be submitted along with their budgets.
She said, “MDAs are hereby advised that new projects will not be admitted into the capital budget for 2021, unless adequate provision has been made for the completion of all on-going projects.”
The minister directed that all MDAs must prepare their budget estimates within the overhead budget ceilings of the 2020 budget, which has been retained in the 2021 budget.
She also asked them to be guided by the Approved Price List obtainable from the Price Checker Portal of the Bureau of Public Procurement (BPP), in preparing the estimates.
Mrs. Ahmed warned, “For avoidance of doubt, any project/programme not based on the Price Checker Portal will be inadmissible, except where information on the specific item is not available on the portal.”
The minister added that MDAs should desist from the practice of specifying models/brands of assets they propose to buy. She said that the budget office would intervene if that regulation was neglected.
On personnel cost, the minister said that she expected all MDAs to have fully complied with the presidential directive on the Integrated Personnel Payroll Information System (IPPIS) and that anyone not yet on the system would not be provided for , in the 2021 budget.
In order to cut costs, the minister asked MDAs to restrict their training programmes to locations near their offices and within the country. Foreign travels, she said would only be allowed in exceptional cases and with appropriate approvals.
The minister also warned that MDAs must not provide for recurrent expenditure in their capital budgets as a means of subverting the recurrent expenditure ceilings.
She said that such provisions would be reallocated to capital expenditure outside the MDA, as deemed appropriate.