BUDGET MANAGEMENT

BUDGET MANAGEMENT

The Budget is a tool for giving substance to a plan or strategy or an instrument used in accomplishing a set of goals stated in a policy document. Budgeting is an annual process, which enables a State Government to implement and achieve the goals stated in the policy document for a particular fiscal year.

This explains standard budget procedures to be followed by all Ministries, Departments and Agencies (MDAs) of Enugu State in the preparation and implementation of annual budgets. It should be used in conjunction with the extant rules, regulations and laws guiding budgeting and financial management in the state including the:

  1. Enugu State Public Finances (Control and Management) Law 2005.
  2. Enugu State Procurement Law (2010).
  3. Audit law of Enugu State (cap,14 Revised Edition, laws of Enugu State, 2004).
  4. Enugu State Budget Call Circular to MDAs as issued from year to year by the Ministry of Budget and Planning.
  5. Enugu State Appropriation Laws.
  6. Any other laws that may be enacted in the future to guide the State’s fiscal and public financial management.

Budget management involves planning, organizing, coordinating, monitoring and reporting the various activities contained in the budget cycle (see figure 1 below). The budget process therefore encompasses all the activities, processes, roles, responsibilities and timeline for effective and efficient management of Enugu State budget.

Figure 1: Enugu State Level Budget Cycle

Figure 1 illustrates and provides guidance on the linkages between policy making, planning and budgeting, stakeholder participation in the budget process; improved financial reporting; and better monitoring and evaluation mechanism.