Y2015 Draft Budget To The - PowerPoint Presentation

Slide1

Y2015 Draft BudgetTo The State House of Assembly

LAGOS STATE GOVERNMENT

Ministry of Economic Planning & Budget

25

th

November,

2014

Slide2

OUTLINEIntroductionY2015 Budget Objectives/Fiscal Strategy

Y2015 Budget using PBB Approach

Y2014 Budget and its Performance as at the end of Q3EXCO Approved MTBF

Macro-Economic AssumptionsY2015

Budget ProposalsConclusion 2

Ministry of Economic Planning & Budget

Slide3

IntroductionY2015 budget is the Final Budget in the life of the present Administration and aimed at further consolidating its landmark achievementsThe Y2015-Y2017

Medium-Term Budget Framework (MTBF) was approved by the State Executive Council at its meeting held on

Monday, 7th July, 2014The MTBF Y2015-Y2017 projected a Budget Size of

N514.175bn for Y2015, but upon approval

EXCO directed that we retain the Y2014 Budget Size of N489.690bn , with no deficitEXCO also approved marginal increases in allocations to Public Order & Safety, Housing & Community Amenities and Economic Affairs Function Groups

The

Planning

and

Contingency

Reserves

were also reduced to 1% from the 2.5% proposed in the MTBF

3

Ministry of Economic Planning & Budget

Slide4

Introduction……/2Function Disaggregation approved by EXCO reflected Government priority on P

ower , Agriculture, T

ransportation and Housing (PATH) Intra-Functional Disaggregation meetings/ negotiations within the Nine (9)

Function Groups were held to drive resource allocation to MDAsGuiding principles of the current year’s Budget (i.e. Y2014) in the areas of Payment of Outstanding Liabilities, Completion of all on-going Projects and Maintenance of Public Infrastructure were also sustained

4Ministry of Economic Planning & Budget

Slide5

Y2015 Budget Objectives

State Economic Policy thrust remains

“Poverty Eradication and Sustainable Economic Growth through Infrastructure Renewal and Development”Consolidating the Medium Term Sector Strategy(MTSS)

approach through the adoption of the Program Based Budget (PBB)

Sustenance of the Goals of Job Creation

5

Ministry of Economic Planning & Budget

Slide6

Y2015 Budget Objectives…./2

Poverty eradication and wealth creation

Ensuring effective and efficient service delivery to the entire citizenry of Lagos StateSupport for Private Sector to create job opportunities, and

Improvement of general well being of our citizens

6Ministry of Economic Planning & Budget

Slide7

Y2015

Budget :Fiscal Strategy

Setting the

Y2015

Expenditure at sustainable level, especially in view of declining Federal Transfers

No Deficit Financing allowable for

Y2015

Budget

Effective and Efficient Tax Administration (Assessment, Collection and Enforcement)

Maintaining the Capital: Recurrent Expenditure ratio in the Policy Range of

60-50% (Capital)

and

40-50% (Recurrent)

Keeping

Total Public Debt

at

sustainable level; and

Promoting non-oil growth

and expansion of

R

evenue base

7

Ministry of Economic Planning & Budget

Slide8

Y2015 budget using PBB ApproachYear 2015

Budget was prepared using the Programme Based Budget (PBB) approach, alongside the existing Legacy templates

PBB is a systematic approach to planning of Public Expenditure towards achieving clearly defined results, policy objectives or routine servicesIt is based on Programme

budget structures which consist of breaking functions into programmes and developing a template to capture the cost of each

programmeIt ensures that each programme has an organic link to the broad policy goals of the sector

8

Ministry of Economic Planning & Budget

Slide9

Y2015 budget using PBB Approach…/2Each

programme is a cluster of activities that are mutually exclusive, i.e., no duplications

There are 15(fifteen) maximum programmes made up of 6(six) Generic ones common to all MDAs while;The remaining 9(nine) allow MDAs room to reflect their core mandates and activities, which at a later stage can be broken down into a maximum of 12 (twelve) sub-programmes

9

Ministry of Economic Planning & Budget

Slide10

Benefits of using PBB ApproachPBB is a Plan-Led System linked with State Development Plan/Sector Strategies as against existing Budget-Led system which is less robust and not as clearly linked to Policy Objectives

It is aimed at building greater transparency, accountability and comprehensiveness into the budget

process by facilitating tracking of expenditure, monitoring and evaluation in line with policy goalsIt provides a better basis for monitoring and evaluating outputs on Annual basisCore Programmes were developed for MDAs and bilaterally agreed as listed in

Annexure XIIPresent departmental/directorate structure of MDAs not affected by the

PBB approach10

Ministry of Economic Planning & Budget

Slide11

Challenges of Full Implementation of PBB ApproachInability to complete and configure the new Chart of Accounts into the Oracle System before the Preparation of the

Y2015 Budget commencedIntegration of Chart of Accounts with Budget Classification

Scheduled Upgrade of Oracle Applications, including migration of PSB to Hyperion not yet implementedAs a result, MDAs were requested to upload their Y2015 Budget using the existing seven segment Chart of Accounts (Legacy Template)

Financial Systems Mgt. Bureau (FSMB) however assures that migration to PBB

on Oracle would be hitch-free upon completion of the upgrades11

Ministry of Economic Planning & Budget

Slide12

Y2014 REVISED BUDGET AND ITS PERFORMANCE AS AT THE END OF Q3 12

Ministry of Economic Planning & Budget

NB Performance as published in Y2014 Q3 Budget Appraisal

Details

Revised Prov.

Pro-rated

(Jan-Sept.)

N’bn

Actual

(Jan-Sept)

N’bn

Perf

.

%

Ordinary Revenue

349.880

292.860

84

Total Capital Receipts

17.388

19.311

111

Total Recurrent Expenditure

177.799

168.547

95

i

. Personnel

66.016

63.155

96

ii. Overhead

111.783

105.392

94

Total Recurrent Surplus

172.081

124.313

72

Total Capital Expenditure

189.469

145.622

77

Financing

– Surplus/(Deficit)

-

(1.998)

-

Budget Size

367.268

314.169

86

Slide13

Y2015 BUDGET PROCESSMajor Revenue Generating Agencies provided inputs into Y2015

–Y2017 Fiscal Strategy -13

th May, 2014

Y2015 –

Y2017 MTBF approved by EXCO -7th July, 2014

Half-Year Budget Performance Appraisal

- 22

nd

July, 2014

Budget Consultative Forum held to obtain stakeholders inputs into

Y2015

Budget -

30

th

July, 2014

Intra-Functional Group disaggregation supervised by

COFOG

Champions

- 5

th

-7

th

August, 2014

Bilateral discussions held with MDAs(

Programmes

and Projects not accommodated within envelopes were compiled for

STB

/

EXCO

consideration)

- 1

st

to

17

th

Sept., 2014

Presentation of draft Y2015 to STB on

30

th

October, 2014

Presentation of draft

Y2015

to

EXCO

on

3

rd

November, 2014

Presentation of Appropriation Bill to House of Assembly on

10

th November, 2014

13

Ministry of Economic Planning & Budget

Slide14

EXCO APPROVED MTBF Y2015-Y201714

Ministry of Economic Planning & Budget

Item

201

4

Revised

Budget

N’bn

2015

EXCO

Approved

N’bn

Proposed

MTBF

Projection

(

N’bn

)

2015

2016

2017

Total Revenue

489.690

489.690

514.175

539.884

566.874

Internal Revenue

327.206

337.971

348.855

365.991

386.661

b. Federal

Transfers

139.300

139.300

142.535

151.139

154.370

c. Capital Receipts

23.184

12.419

22.785

22.754

25.843

Total Recurrent Expenditure

234.665

235.415

240.415

249.401

252.515

a.Personnel Costs

87.921

90.671

90.671

90.041

91.090

b.Overhead Cost

146.744

144.744

149.744

159.360

161.425

Total Capital Expenditure

255.025

254.275

273.760

290.483

314.359

Financing Component

-

-

-

-

-

Budget Size

489.690

489.690

514.175

539.884

566.874

Slide15

MACRO-ECONOMIC ASSUMPTIONS 15Ministry of Economic Planning & Budget

SN

Indicators/Years

2015

20141GDP Growth

10%

8%

2

Inflation rate

7.0%

7.3%

3

Average Naira to USD Exchange rate

N160

N160

4

Forecast/Benchmark oil price

$78

$77.5

5

Oil Production

2.38mbpd

2.38mbpd

6

Unemployment (Lagos State)

8%

8%

Source: NBS; LBS; CBN; BUDGET OFFICE, ABUJA

Note:

Current trends do not support some of these indicators and impact of such has been

taken into account in the

Y2015

Budget Proposal

Slide16

Y2015 BUDGET PRIORITY AREAS

Power

AgricultureTransportation (Multi-modal)Housing

Security

EducationHealth

Water

Environment

e-Governance

16

Ministry of Economic Planning & Budget

Slide17

Y2015 BUDGET17

Ministry of Economic Planning & Budget

SN

Item

Y2015

Proposed

(

Nbn

)

Post-TB

Y2015

Proposed

(

Nbn

)

TB

Approved

Y2015

MTBF

(

Nbn

)

Y

201

4

Revised

Budget

N’bn

A.

Total Revenue

489.690

505.582

489.690

489.690

B.

Total Internally Generated Revenue (

IGR

)

363.690

365.782

367.910

350.390

i

.

Internally Generated Revenue (IGR)

337.450

339.542

344.491

327.206

C.

Capital

Receipts

26.240

26.240

23.419

23.184

D.

Federal Transfers

126.000

139.800

121.780

139.300

E.

Total Recurrent Expenditure

239.948

242.100

235.415

234.665

i

.

Personnel

Cost

113.170

113.170

90.671

87.921

ii.

Overhead Cost

126.778

128.930

144.744

146.744

F.

Total Capital Expenditure

249.742

247.590

254.275

255.025

G.

Financing Surplus

-

15.892

-

-

H.

Budget Size

489.690

489.690

489.690

489.690

Slide18

Y2015 FUNCTION ALLOCATIONS

Details

Y2015

Proposed

(Nbn)

Post-TB

%

Y2015

Proposed

(

Nbn

)

TB

%

Approved

MTBF

Y2015

(

Nbn

)

%

Revised

Y2014

Budget

(

Nbn

)

%

i

. General Public Service

107.690

22.0

99.270

20.27

97.938

20.0

102.750

20.98

ii. Public Order

&

Safety

15.547

3.2

17.898

3.65

19.588

4.0

21.995

4.49

iii. Economic Affairs

146.306

29.9

143.202

29.24

146.907

30.0

153.206

31.29

iv. Environmental

Protection

34.953

7.1

39.545

8.08

43.533

8.89

39.040

7.97

v. Housing & Community

Amenities49.03310.049.44510.1051.71110.5650.17110.26vi. Health44.6179.146.6659.5341.6238.5038.5927.88vii. Recreation, Culture & Religion3.1180.63.4470.703.1820.653.4850.71viii. Education82.11416.883.63917.0878.35016.077.28115.78ix. Social Protection1.5890.31.8660.381.9580.403.1690.65x. Planning Reserve2.2600.52.2600.462.4480.50--xi. Contingency2.4480.52.4480.502.4480.50--Total489.690100489.690100489.690100489.690100

18

Ministry of Economic Planning & Budget

Slide19

General Public ServiceResolution of critical Pension ArrearsTraining and Development with the Goal of enhancing productivity Service-wideDelivering Efficient Public Service ICT Infrastructure/e-

Governance

Continuous Residents Registration and Issuance of Permanent Resident’s cardsCompletion of Obas’ PalacesPublic Financial Management System Reforms

19

Ministry of Economic Planning & Budget

KEY FUNCTION HIGHLIGHTS

Slide20

Public Order and SafetyComputerisation/Automation of Judicial procedures, including e-filing Completion of on-going High/Magistrate Courts projectsContinuous Upgrade of Court Rooms and Judges Chambers

Witness Support Unit and Community Service SchemePublication of Updated Laws of Lagos State by Law Reform Commission

Improving Safety and Disaster ManagementContinuous Capacity Building of LASTMA, KAI,

Neighbourhood Watchers and VIS Officials by the Law Enforcement Training Institute(LETI

)20

Ministry of Economic Planning & Budget

KEY FUNCTION HIGHLIGHTS………………/2

Slide21

Economic AffairsImplementation of Solar System for Secondary Schools and Primary Healthcare Centres(Phase ll)Rehabilitation and Maintenance of existing Streetlight Facilities

Provision of Traffic Signal Lights in strategic locations

Advancement of Ten-Lane Lagos-Badagry Expressway / Blue Rail Line CorridorCompletion of Multi-Agency Office Complex

Completion of other on-going Road Construction Projects and Pedestrian Bridges Agric-YES, Accelerated Food Expansion Program: Rice, Animal Husbandry, Root Crops

21

Ministry of Economic Planning & Budget

KEY FUNCTION HIGHLIGHTS………………/3

Slide22

Environmental ProtectionImprovement/Maintenance of Drainage ChannelsCompletion of New Sewage Treatment Plant at Odo Iya-Alaro

Implementation of on-going Water sub-sector Reforms

Advancement of Adiyan Water works Phase II and Improvement of water pipeline in Lagos West Solid waste management Continuous Mitigation of global warming through, Tree-planting, Greening and Beautification

Programme

22Ministry of Economic Planning & Budget

KEY FUNCTION HIGHLIGHTS………………/4

Slide23

Housing & Community AmenitiesLagos Home Ownership Mortgage Scheme (H.O.M.S)Implementation/Rehabilitation of small scale Rural Water Schemes Provision of Rural Roads

Completion of Isale-gangan

re-development projectRelocation of Okobaba Saw MillRelocation of

Ikeja Computer Village to Katangowa

Electronic Certificate of OccupancyContinuous upgrading of slum areas

23

Ministry of Economic Planning & Budget

KEY FUNCTION HIGHLIGHTS………………/5

Slide24

HealthImproving Reliability and Responsiveness of Healthcare SystemEnhanced Service Delivery through the flagship Primary Healthcare CentresPreventive Medical Screening

including immunizationsContinuous upgrading of Health facilities and

Completion of on-going Health Facilities, including the MCCs at Epe and BadagryEstablishment of Oxygen Plant

Refurbishment of Infection Disease Hospital (IDH), Yaba & Construction of additional Facilities

Medical Research ActivitiesUpgrading of College of Medicine Laboratory24

Ministry of Economic Planning & Budget

KEY FUNCTION HIGHLIGHTS………………/6

Slide25

Recreation, Culture & ReligionCompletion/Maintenance of New and Existing Fire StationsPurchase of Fire Fighting EquipmentMaintenance/Development of Mini StadiaHosting, Organizing and Participation in various Sports Competitions including South West Games (

D.A.W.N.)Pilgrims Welfare

25

Ministry of Economic Planning & Budget

KEY FUNCTION HIGHLIGHTS………………/7

Slide26

EducationContinued Rehabilitation/Upgrading of Public School buildings/facilities Continued Provision of Free Textbooks and books for Public School LibrariesImprovement of Science and ICT facilities in Public Schools, including e-libraries.

Facility Management of Public SchoolsProvision of School Furniture

Continuation of World Bank funded EKO Projects in Secondary Schools

26

Ministry of Economic Planning & Budget

KEY FUNCTION HIGHLIGHTS………………/8

Slide27

Social ProtectionSkill Acquisition CentresEconomic Empowerment Programmes, including microfinance support

Advocacy programmes for Persons Living with Disability

Continuous upgrading/Completion of Youth CentresMaintenance and upkeep of Old Peoples Home, Boys and Girls Remand Homes

Maintenance and Upkeep of Ketu Special Children’s Centre

Upkeep and Maintenance of the Transit Home for victims of Domestic Violence27

Ministry of Economic Planning & Budget

KEY FUNCTION HIGHLIGHTS………………/9

Slide28

Y2015 Total Revenue

SN

Details

Y2015

Proposed

(

Nbn

)

Approved

MTBF

Y2015

(

Nbn

)

Revised

Y2014 Budget

(

Nbn

)

A.

Total

Revenue

489.690

489.690

489.690

B.

Total Internally Generated Revenue

363.690

367.910

350.390

i

.

LIRS

279.153

279.153

265.860

ii.

IGR

(others)

34.945

49.164

37.676

iii.

Dedicated Revenue

19.551

15.574

19.970

iv.

Investment Income

0.700

0.500

0.500

v.

Extra

Ord. Revenue

3.100

0.100

3.200

C.

Total Capital Receipts

26.240

23.419

23.184

i

.

Grants (Donor)

7.096

6.174

4.300

ii.

Other Capital Receipts19.14417.24518.88428Ministry of Economic Planning & Budget

Slide29

Y2015 Total Revenue …./2

SN

Details

Y2015

Proposed

(

Nbn

)

Approved

MTBF

Y2015

(

Nbn

)

Revised

Y2014 Budget

(

Nbn

)

D.

Federal

Transfers

126.000

121.780

139.300

i

.

Statutory

Allocation

54.000

42.000

74.000

ii.

VAT

72.000

78.000

65.000

iii.

Extra Ord. Income

-

1.780

0.300

Total Revenue

489.690

489.690

489.690

29

Ministry of Economic Planning & Budget

Slide30

Y2015 RECURRENT EXPENDITURE

Details

Y2015

Proposed

(

Nbn

)

Approved

MTBF

Y2015

(

Nbn

)

Revised

Y2014 Budget

(

Nbn

)

Total Recurrent Expenditure

239.948

235.415

241.865

Total

Personnel Cost

113.170

90.671

88.221

Total

Overhead Cost

126.778

144.744

153.644

30

Ministry of Economic Planning & Budget

Slide31

Y2015 PERSONNEL COST31

Ministry of Economic Planning & Budget

Details

Y2015

Proposed

(

Nbn

)

Approved

MTBF

Y2015

(

Nbn

)

Revised

Y2014 Budget

(

Nbn

)

Total Personnel Costs

113.170

90.671

88.221

i

.

Personnel Costs (Basic & Allowances)

77.326

72.911

71.432

ii.

Personnel Costs (Consolidated)

2.462

2.596

2.659

iii.

NYSC

/Interns (Allowances)

0.300

0.347

0.320

iv.

Other Personnel Cost (Contingency)

1.400

1.774

1.729

v.

7.5% of Basic, Rent & Transport as Govt. Share to Pension Contribution

3.762

3.700

3.500

vi.

2.5% Govt. Share to Pension Contribution

1.298 --vii. 5% BSA (Pension Redemption Bond Fund) 3.866 3.700 3.500 viii.Pension Redemption Bond Fund Shortfall 3.858   -  -ix. Pension & Gratuities (Civil Service/ Teaching Services) 3.200 3.500 3.200

Slide32

Y2015 PERSONNEL COST32

Ministry of Economic Planning & Budget

SN

Details

Y2015

Proposed

(

Nbn

)

Approved

MTBF

Y2015

(

Nbn

)

Revised

Y2014 Budget

(

Nbn

)

x.

142% Pension & Gratuities

(

Civil Service/

Teaching

Services)-Arrears

0.976

-

 

-

 

xi.

6% Pension & Gratuities

(

Civil Service/

Teaching

Services)-Arrears

0.074

 

-

-

 

xii.

15% Pension & Gratuities

(

Civil Service/

Teaching

Services)-Arrears

0.341

 

-

-

 

xiii.

Pension & Gratuities (Judiciary)

0.234

0.293

0.311

xiv.

Retirement Planning/Contingency Expenses (Pensions)

0.200

-

0.370 xv. Pension Sinking Fund 1.200 1.200 1.200 xvi.Severance Pay (Pol. Off. Holders) 0.600 0.650 - xvii.Subvention12.072--

Slide33

Y2015 OVERHEAD COST

SN

Details

Y2015

Proposed

(

Nbn

)

Approved

MTBF

Y2015

(

Nbn

)

Revised

Y2014 Budget

(

Nbn

)

Total Overhead Costs

126.778

144.744

153.644

i

.

Overhead Costs

67.455

72.064

78.177

ii.

Dedicated Expenditure

19.551

15.574

19.970

iii.

Subvention

15.496

32.409

32.152

33

Ministry of Economic Planning & Budget

Slide34

Y2015 DEBT SERVICING

SN

Details

Y2015

Proposed

(

Nbn

)

Approved

MTBF

Y2015

(

Nbn

)

Revised

Y2014 Budget

(

Nbn

)

iv.

Debt Charges (External)

2.185

1.128

0.922

v.

Debt Charges (Internal)

22.080

23.589

22.423

vi.

Debt Charges

(Bond Administration)

-

-

-

SURPLUS ON CRF

249.742

254.275

247.825

34

Ministry of Economic Planning & Budget

Slide35

Y2015 TOTAL CAPITAL EXPENDITURE

SN

Details

Y2015

Proposed

(

Nbn

)

Approved

MTBF

Y2015

(

Nbn

)

Revised

Y2014 Budget

(

Nbn

)

Total

Capital Expenditure

249.742

254.275

247.825

i

.

Core Capital

206.793

214.181

215.346

ii.

Capital Development

19.144

17.245

17.884

iii.

Grants

7.096

6.174

5.300

iv.

Counterpart Funding

7.350

6.624

3.500

v.

Special Expenditure

4.500

5.000

5.500

vi.

Risk Retention Fund

0.100

0.105

0.100

vii.

Staff

Housing Fund

0.050

0.050

0.050

viii.

Contingency Reserve

2.448

2.448

0.145

ix.

Planning Reserve

2.260

2.448-35Ministry of Economic Planning & Budget

Slide36

Y2015 BUDGET FINANCING COMPONENTS

Details

Y2015

Proposed

(

Nbn

)

Approved

MTBF

Y2015

(

Nbn

)

Revised

Y2014

Budget

(

Nbn

)

Financing Surplus/Deficit

-

-

-

Financing

-

-

-

A.

Financing Sources

90.818

90.818

99.746

i

.

External

Loans:

a. Development Policy Operations (

DPO

3)

32.000

32.000

30.000

b. Others

24.542

24.542

14.080

ii.

Internal Loans

34.276

34.276

55.666

iii.

Bond Issue

-

-

-

B.

Repayments

90.818

90.818

99.746

i

.

External Loan (Principal

Repayments)

1.689

1.689

0.768

ii.

Internal Loan (Principal Repayments)27.38427.38434.985iii.Consolidated Debt Service Accounts(CDSA)61.74561.74563.99336Ministry of Economic Planning & Budget

Slide37

KEY POINTS ON Y2015 Budget

37

Ministry of Economic Planning & Budget

SN

Details

Y2015

Proposed

Y2015

MTBF

i

.

Total

Personnel Cost/Total Rev

23%

19%

ii.

Total

Personnel Cost/

IGR

31%

25%

iii.

Personnel

Cost as % Recur. Exp

47%

39%

iv.

Capital

: Recurrent Ratio

51:49

52:48

v.

Total Personnel Cost/Total Exp

23%

19%

vi.

Total Ordinary Revenue

N489.690bn

N489.690bn

vii.

Budget Size

N489.690bn

N489.690bn

viii.

Financing Surplus

-

-

Slide38

Notes on

Y2015

Budget

Honourable members of the Lagos State House of Assembly are respectfully invited to consider as well as n

ote

that

:

i

. Y2014

Budget

Q3

Cumulative Performance of

86%

(Jan.- Sept)

ii. Y2015 Budget proposes a

Total Revenue

of

N489.690bn

iii.

Capital Receipts

of

N26.240bn

iv.

Y2015

Budget proposes a

Total

Recurrent Expenditure

of

N239.948bn

made up of

:

a. Personnel Cost - N113.170bn

b. Overhead Cost -

N126.778bn

38

Ministry of Economic Planning & Budget

Slide39

v. Total Capital Expenditure of

N249.742bn

vi. Y2015 Budget has a nil financing

requirement

vii. a performance target of 100%viii. All

Core Programs

developed for MDAs in Annexure XII,

ix.

Additional Requests

were received from

Thirty Seven

(37) MDAs ,

which amounted to

N137,307,804,890

made up

of: a.

Capital Exp

. -

N105,427,344,791

b.

Recurrent Exp.

-

N31,880,460,189

x.

Y2015

Budget with

Budget Size

of

N489.690bn

/Total Revenue

of

N489.690bn

39

Ministry of Economic Planning & Budget

Notes on

Y2015

Budget

Slide40

Thank you for listeningEko o ni Baje o.

40

Ministry of Economic Planning & Budget