A government budgeting is an essential responsibility for public administrators, one that requires both financial and political skills. An understanding of government budgeting is critical to understanding the policy process and the workings of government and its prima revenue generating agency. This course reviews the current macroeconomic variables and draws on insights from the new financial management approach. It introduces new tools that can be applied to the preparation, analysis of budgetary information and how governments at the subnational levels raise revenue.
The training seminar will be structured as a highly participative workshop with formal presentations, case studies and interactive worked examples. Relevant examples and case studies are provided to illustrate the application of each of the topics covered and opportunities are provided to learn and apply the key financial accounting and budgeting principles using practical examples and exercises.
At the end of this session, participants will be able to:
- Demonstrate skills for budgeting processes and procedures in government.
- Successfully build an integrated planning, budgeting and reporting process
- Understand capital and operational budgeting
- Deliver more timely and useful information to decision-makers.
This course also equips public service officers with skills to put in place corrective budgetary actions.
The Macroeconomic Environment for Public Sector Budgeting
- Basic Principles of Macroeconomic and Fiscal Policy
- State of the Nigerian Economy
- Fiscal Responsibility Act 2007
- Medium Term Expenditure Framework 2022-2023
- The Dimensions of New Public Management (NPM).
Budgeting: Principles and Key Concepts
- Overview of Budgeting:
- Understanding the Context for Budgeting
- The Benefit of Budgeting and its Role for Achieving Set Targets
- Main Issues with Budget Preparation in the Public Sector.
The Budgeting Process
- Budgeting timetable
- Call circular to trigger the preparation
- Revenue and expenditure estimates
- Capital estimates
- Recurrent estimates
- Legal commitments on specific services
- Defending the budget estimates with the executive
- Legislative examination of the budget (if relevant)
- Budget negotiations
- Assent to the budget.
Content and Structure of Operational Budget
- Preparation of Operational Budgets
- Outcome focused Budgeting in the Public Sector
- Techniques for Forecasting Income and Costs
- Functional and Activity-based Budgeting
- Budget Layers
- Zero based Budget
- The Budgeted Income Statement
Adherence to Financial Regulations
- Designated accounts for all revenues
- Authority for funds spending.
Content and Structure of Capital Budget / Models
- Principles of Capital Budgeting
- Computer-based Financial Planning Models
- Mastering MS Excel for building the budget
- Excel formulas for budget model
- Custom formatting numbers
- Formula Debugging & auditing techniques
- Data validation
- Consolidating and linking Excel Workbooks
- Grouping and Outlines.
- Revenue accounts
- Special funds
- Contingency funds
Human/Behavioral Aspects of Budgeting
- Budgeting and Responsibility Accounting
- Financial and Non-Financial Performance Measures
- Key Issues for the future of the Nigerian Economy and the role of the Tax office.