Review/Refresher Training Workshop of MDAs on Budget Preparation Process

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KADUNA STATE PLANNING AND BUDGET COMMISSION

Overview

OF

2025-2027 MULTI-YEAR BUDGET CALL CIRCULAR

13^th - 15^th August 2024

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BUDGET CALL CIRCULAR�

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CALL CIRCULAR

• In every organization, irrespective of its size, communication among the employees is crucial.

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• A circular is essentially a letter containing some important information that is distributed to a large number of people, organizations, and MDAs.

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BUDGET CALL CIRCULAR

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• The Budget Call Circular is a document that gives official guidelines on budget preparation for the period 2025-2027, including preliminary expenditure ceilings for 2025-2027, formats for budget presentation and preparation of Strategic Issues Paper, guidance on prioritization within projected resource constraints

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• The circular gives detailed guidelines and instructions on how to make realistic 2025 - 2027 Recurrent and Capital Expenditure estimates using the Multi-year costing Template

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BACKGROUND

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• Despite the headwinds created by the global economic crisis, the economy is recovering. The funding of the State Budget remains dependent on the statutory allocation from the Federation account which has over the years maintained a staggering pattern moving from dwindling to skyrocketing

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• The administration has resolved to facilitate service delivery to respond adequately to the prevailing circumstances, which cannot be achieved without appreciable funding, hence, the need for the State to explore the only other option of looking inwards and harnessing its revenue potential.

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• Furthermore, Section 121 (1) of the 1999 Constitution of the Federal Republic of Nigeria and Chapter 3 of the Financial Instructions 2005 assigned the Executive Arm of Government the responsibility of preparing Annual Budgets for presentation to the Kaduna State House of Assembly

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• The Planning and Budget Commission is the office within the arm of the Executive that is charged with fulfilling this responsibility and is issuing this circular to formally launch the preparation process for the 2025-2027 Multi-Year Budget.

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State Development Plan

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• In preparing the Budget and given the fiscal circumstances of the State, financial resources will be strictly dedicated to enable Government to respond adequately to the prevailing challenges brought up by constraints in the fiscal space due to the harsh economic environment, while meeting the objectives outlined in the State Development Plan 2021-2025.

Bearing this in mind, you are requested to:

• Make realistic 2025 -2027 Recurrent Expenditure estimates using the Multi year costing Template

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• Capital Receipts, only Ministries/Agencies with Loans and Grants funding requirements should make submissions .

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• You would equally recall the State adopted the Multi-Year Budgeting Framework to actualize this term plan and in continuation of this, the framework will be a veritable tool to still deliver on the aspiration to meet the demands of the people.

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2024 Budget will also adhere to key fiscal objectives outlined by State Government

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• Ensuring the actualization of the development priorities of the Government as articulated in the revised State Development Plan (SDP)
• Ensure to use 2025-2027 costing template.
• MDAs to ensure 5% of it’s Capital Expenditure goes to projects under the Community Development Charter (CDC)
• Maintaining a favorable proportion of Capital to Recurrent expenditure (at least a target of 60%:40%);
• Ensuring adequate provision of 2024 projects likely to be completed in 2025
• Maintaining the expanded Revenue generating capacity of the State;
• Eliminating wastages and other unjustifiable expenditures that are not clearly linked to policy objectives.
• Inclusion of new projects must be strictly in line with the revised SDP objectives after considering all ongoing projects.

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Budget Preparation Process

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• The officers that attend the training should be the ones to prepare the 2025-2027 budget.
• Tertiary institutions should ensure that third-party funds are captured on the revenue side and reflected on expenditure side of their budget
• 2024 Ongoing Projects: All MDAs must ensure that projects included in their 2024 budget which from all indication will not be completed and/or paid for in 2024 are fully reflected in the 2025 budget proposal
• Ensure New Projects emerge only from the revised SDP: For new projects, each sector should work with its respective MDAs to review its Sector Implementation Plan (SIP) against the revised State Development Plan (SDP).
• Allocate resources: Resources should be allocated starting from the highest priority activities and continuing in sequence down to lower priority activities
• Community participation: MDAs are encouraged to engage with Civil Society Organizations, Community Based Organizations and relevant Stakeholders in their Budget preparation process. Inputs from such engagements should be in line with the aspirations of the Government

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Centralized Budget Heads

• Office Stationery/Consumables, Motor Vehicle fuel cost, Duty Tour Allowance (DTA), Motor Vehicle Procurement, Printing of Security Documents, Inherited Liabilities – Ministry of Finance.
• Generator Fuel Cost, Maintenance of Public Buildings – Kaduna State Facilities Management Agency (KADFAMA).
• Audit Fees – Office of the State Auditor General.
• Training – Office of the Head of Service, with few exceptions.
• Construction of New Government Buildings - Ministry of Housing and Urban Development, with few exceptions.
• Donations to Institutions & Organizations - Office of the Secretary to the State Government.
• Internet - Office of the Chief Information Officer and Ministry of Business Innovation and Technology.
• Drugs Procurement - Kaduna State Health Supplies Management Agency (KADHSMA).
• Publicity and Advertisement – Chief Press Secretary to the Governor.
• Monitoring and Evaluation – Planning and Budget Commission.
• Food and Nutrition – Planning and Budget Commission.

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Budget Estimate considerations

• General: Budget estimates should be prepared for all units, sub-units and facilities in the organizations for which the MDA is responsible

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• Personnel Costs : All staff on the payroll, including political, and public office holders must be properly reflected in the Staff List (Annex 4)

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• Personnel cost estimates (Annex 3): consider any changes in staffing levels including annual increments, promotions, leave grants, retirement, and other forms of attrition

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• Capital Expenditure: Capital expenditure estimates must be consistent with the revised 2021 – 2025 Kaduna State Development Plan (SDP)

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Submission of 2025-2027 Budget

Planning and Budget Commission

16 Muhammadu Buhari Way Kaduna

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