A budget is an estimation of revenue and expenses over a specified future period of time; it is compiled and re-evaluated on a periodic basis. Budgets can be made for a person, a family, a group of people, a business, a government, a country, a multinational organization or just about anything else that makes and spends money. Among companies and organizations, a budget is an internal tool used by management and is often not required for reporting by external parties.
This entails revenue estimation using current information on oil production and prices. It also involves estimation of non-oil receipts, and developing of a macroeconomic framework.
Specifying fiscal policy objectives, the macroeconomic framework, the policy basis for the budget, and identifiable major fiscal risks. In addition, the indication of expenditure estimates. The statement of fiscal policy objectives and an assessment of fiscal sustainability provide the framework for the annual budget.
The FGN budget is prepared and presented within a comprehensive and consistent quantitative macroeconomic framework, with clear indication of the main assumptions underlying the budget provided.
New policies being introduced in the annual budget are clearly described.
According to Section 81 of the Constitution of the Federal Republic of Nigeria, 1999, “the President shall cause to be prepared and laid before each House of the National Assembly at any time in each financial year estimates of the revenues and expenditure of the Federation for the next following financial year”.
Accordingly, when the FGN budget is formulated and processed and approved by the Federal Executive Council it is formally “laid before each House of the National Assembly” as stipulated by the Constitution.
Budget information is presented in a way that facilitates policy analysis and promotes accountability. Budget data is reported on a gross basis, distinguishing revenue, expenditure, and financing, with expenditure classified by economic, functional, and administrative category. Data on extra-budgetary activities is reported on the same basis. Statement of objectives to be achieved by major budget programs is provided.
The overall balance of the general government is a standard summary indicator of the government’s fiscal position. This is contained in the President’s Budget Speech for the new fiscal year. This is supplemented where appropriate by other fiscal indicators for the government.
Procedures for Budget Execution Procedures for the execution, monitoring and Evaluation of the FGN Budget are clear. A comprehensive, integrated accounting system, which provides a reliable basis for assessing payment arrears in the Treasury.
Standardised procurement and employment regulations, which is open.
The Department of Budget Monitoring and Evaluation go out into the field to monitor projects and report. In addition, the department in conjunction with the treasury monitor disbursement of funds and its application by spending Ministries of Agencies.
The work of the Department of Budget Monitoring and Evaluation is further complemented by the Budget Monitoring and Price Intelligence Unit in the Presidency.
According To Budget Nigeria
Full List Of Federal Government Budget From 1999 – 2018