NATIONAL BUDGET PREPARATION

NATIONAL BUDGET PREPARATION

The Nigerian financial years runs from 1st January and ends on 31st December, of the same year. Then executive’s preparation of the budget for a new year commences same months to the end of the present financial year. The new budgets proposal is expected to be sent to the national assembly for deliberation, during the civilian regime, the provisional ruling council and national council of sate deliberate upon the national budgets proposal.

However, proposal is expected to be completed before the commencement of the new fiscal year. The director of budgets prepares the national budget request, each federal government ministry or department to submit its budget proposals for the new fiscal year.

The budgets office then examines each ministries budgets proposal to see that, it is in conformity with the presidents planned programme, after the compilation of the various ministries, budget proposals, the president studies it putting into consideration the prevailing economic condition and the revenue projections presented to him by his adviser on economic matters, the central bank, the ministry of finance etc. However, the various ministries will be called upon to defend their proposals as listed out in the budget before final acceptance.

In these circumstances, the president has examined the revenue and evaluates them in consonance with the stabilization policy of the government. The prepared budget by the executives is then sent to the National Assembly for consideration and approval.

The two houses of the National Assembly could give independent consideration on the proposed items of government expenditure in the budgets.

The national assembly may decide to include more items in the appropriation bill or increase the expenditure vote of a particular item, once the appropriation bill is passed as approval, it is sent back to the president for his assent, he has the option to sign the appropriation bill, but once signed he can then present the budgets to the nation.

In presenting the budget, the president first states the major policy outlines of the government and summarizes the major points contained therein. Secondly, he gives detailed estimation or the government and finally give a careful analysis of selected aspects of the budgets.