0 EFFECTIVE BUDGETING: TRANSLATING YOUR

Transcript:0 EFFECTIVE BUDGETING: TRANSLATING YOUR:
0 EFFECTIVE BUDGETING: TRANSLATING YOUR DEVELOPMENT PLANS INTO ACTION Presentation at the JPB/NCDP meeting on Accelerating the Implementation of Economic Recovery and Growth Plan: The Role of Stakeholders, held at Abeokuta, Ogun State Wednesday, 29th August, 2018 Ben Akabueze Director-General BUDGET OFFICE OF THE FEDERATION Outline 1 1.0 Introduction 2.0 Budget, a Short-Term Development Plan 3.0 The Linkage: From Plan to Budget 4.0 Some Budgeting Issues that affect Plan Implementation 5.0 Translating Development Plans into Actions 6.0 Critical Success Factors INTRODUCTION 2 An economic development plan is a carefully built framework with a long-term in scope. It provides a comprehensive overview of the economy, sets policy direction for economic growth, and identifies strategies, programs, and projects to improve the economy. A development plan is usually based on a determined model, and made up of five components: Vision, Mission, Goals, Strategies, and Actions. It is basically about deciding in advance what to do, how to do it, when to do it and who is to do it. It is therefore a blueprint for action. Actions are the life wire of any development plan. Without actions or actionable activities, a development plan is as good as dead Development Plan and Annual Budgets INTRODUCTION…/2 3 Development planning has been a consistent phenomenon in Nigeria since the mid-1940s. However, we can argue that it has not been as successful as expected. This implies two things: either the correct plan had not always been made or correct plans made were not effectively implemented. It is important to underscore that development planning is not easy since it deals with many complex and futuristic events. This highlights the need to deliberately pursue short-term activities that are geared to the achievement of the long-term development plan. Annual Budgets are short-term development plans/activities that target at set development objectives. Development Plan and Annual Budgets BUDGET, A SHORT-TERM DEVELOPMENT PLAN 4 Budget, a Short-term Development Plan 5 Budget and Budgeting Budget A budget is not just a set of revenue & expenditure plans by the Government, but culmination of government’s strategic economic and fiscal policies, plans and priorities for actualising its development agenda in a fiscal year Budgeting Budgeting entails choice among competing alternatives. The purpose of budgeting is to achieve the most desirable allocation of funds among alternatives. Resource constraints vis a vis competing economic needs emphasize the need for Budgeting Even if resources were limitless there will still