In order to do
that in Nigerian in question, some mechanism are adopted and they are:-
1.
Policy review
and development strategic planning
2.
Budget preparation
and executive
3.
Budget accountability
POLICY REVIEW AND DEVELOPMENT STRATEGIC PLANNING
This involves the establishment of
performance objectives within specified limit. At this phase, Government takes into account the macro-cosmic
fundamentals of the economy with participation of relevant stakeholders to
evolve policy directives. The policy review is the
budget message or pre-budget
report. The message intends to describe significant changes as noted by Lewi
(2007), in priorities from one year to another and give details of factors that
account for those changes. The outcome of consultation with the stakeholders
forms the basis of government plan or policy thrust for the coming fiscal year
to be forwarded to the budget office economic planning.
BUDGET PREPARATION AND EXECUTION
This is the stage which according to
Akpa (2008) comprises of call circular, advance proposal, budget hearing and
presentation to executive, legislative
examination, hearing and passage and assent to the appropriation bill
call circulars according to Bammeke (2008) emanate from the budget office as
directive to all the ministries, departments and agencies to forward their
advance proposal within a specified dead line for the coming fiscal year. This
is followed by advance proposal which is a proposed list of estimates from
ministries, departments and parastatals of government (MDA) for the coming
fiscal year on personnel emoluments and other expenditure needed in order for a
ministry to carry out its duties. All ministries will toward their proposal to
the ministry of financial and Head of Service for additional staff. The
accounting officers of ministries are summoned to appear before the Estimate
Committee to justify their proposal. The
approving officers (Minister) Commissioner of Finance and Head of Service) make
a national allocation to various MDAs the allocation is then communicated to
the respective ministries so that a draft estimate could be prepared based on
approved items on their proposal.
Legislative Examination, Hearing and
Passage of Appropriation Bill is the stage at which the draft estimates after
being received by the Minister/Commission of finance and Head of Service of Federation/State is passed to the
National Assembly/State House. Once the
draft estimate is considered and passed by the House of Assembly in a budget
session it becomes appropriation estimate/bill. The appropriation estimate/bill
is legally required to be given assent by the Chief Executive (President). The
Chief Executive reserves the right to disagree with certain amendments made by
the legislature especially if they are material. Once the appropriation
estimates has been given assent bys the Chief Executive, it become Budget for
the government fiscal year it covers.
BUDGET ACCOUNTABILITY
This
stage involves subjecting the extent of achievement of budgetary proposals to
scrnting at both legislative level and general public level and public levels. Santiso (2007) identifies
two prominent stages at this point of budgetary process as budget tracking and
reporting and auditing. Budget tracking
is concerned with analysis revenues and expenditures so as to ensure that the
government policy goals are attained.
The aim is to determine the extent to which the strategic objectives of the
budget have been communicated and understood by the various ministries of
government. The audited accounts are also made available to the public in
pursuance of accountability.
All this point to the fact that
there must be a mechanism to control budget if not the implementation will not
be attained and it will affect the National development negatively.