THE BUDGET PROCESS IN PRESIDENTIAL AND

Transcript:THE BUDGET PROCESS IN PRESIDENTIAL AND:
THE BUDGET PROCESS IN PRESIDENTIAL AND PARLIAMENTARY SYSTEMS (ANGLOPHONE EXPERIENCE) A PAPER PRESENTED BY HEZEKIAH OLU. OLUTOYE B.Sc. Econs (Ife); M B A, Finance, (Ilorin); CPA Pioneer Administrative Head, National Assembly Budget and Research Office (NABRO) November, 2014 By the end of this lecture, our objective is to ensure that participants understands the intricacies of both Presidential and Parliamentary systems of budgeting. That they are able to distinguish between the two and analyse the advantages of one over the other Appreciate that no two nations have exactly the same budgeting system Objective of the Paper The Budget is the most important economic policy tool of the Government and provides a comprehensive statement of the nation’s priorities . As the representative of the people, parliament is the appropriate place to ensure that the Budget best matches the nation’s needs with available resources. Budgeting in Anglophone Countries can be broadly divided into Presidential or Parliamentary systems of budget. Introduction Anglophone Countries are countries where English is an official language. The main Anglophones are: U.K., Ireland, U.S., Canada, Australia, New Zealand, Jamaica, South Africa, India, and Nigeria. But there are many others, mainly in West and Southern Africa Presidential system of Government is where a head of government is also head of state and leads an executive branch that is separate from the legislative branch (separation of power) Parliamentary system of Government is a system of democratic governance of a state in which the executive branch derives its democratic legitimacy from, and is held accountable to, the legislature (parliament); the executive and legislative branches are thus interconnected. Definition of Terms 4. A budget is a quantitative expression of a plan for a defined period of time. It may include planned sales volumes and revenues, resource quantities, costs and expenses, assets, liabilities and cash flows. It expresses strategic plans of business units, organizations, activities or events in measurable terms 5. United States of America typifies the presidential system of Government (and Budgeting) while there are Countries among the Anglophones who takes after them. E.g. Nigeria 6. Britain practices Parliamentary system of Government and Budgeting and so also have their followers. E.g. South Africa Definition of Terms (Contd) Generally speaking, the presidential system of government gives more power to the Legislators than the Executives in the sense that: the budget estimates are prepared by the executive for approval by the legislators. The various legislators exercises