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GOVERNMENT OF ANAMBRA STATE OF NIGERIA

Ministry of Economic Planning and Budget Government Secretariat Complex

Awka Tel.: .....................................................

E-mail: .................................................

Reference

Date 02/07/2013

His Excellency, the Deputy Governor;

The Secretary to the State Government;

The Head of Service;

Honourable Commissioners;

Chairmen of Statutory Commission;

Special Advisers;

All Permanent Secretaries;

The principal Secretary to the Executive Governor;

Accountant-General;

The Auditor-General (State);

The Auditor-General for Local Government;

The Chief Registrar, Judiciary;

The Chief Registrar, Customary Court of Appeal;

The Chairman/Chief Executive, BIR;

Executive Secretary, Judicial Service Commission;

All Heads of Non-Ministerial Department/Parastatals;

President ASATU

Coordinator, Coalition of CSOs (COTAGG)

2014 BUDGET PREPARATION AND SUBMISSION CALL CIRCULAR

1.0 Introduction

1.1. The Ministry of Economic Planning and Budget hereby issues this Circular to call for the projected revenue, capital and recurrent expenditure proposals for the 2014 fiscal year (FY). This Circular also seeks to provide guidance and clarity on the criteria for admission of capital projects and programmes into the budget, and on how best to complete next Fiscal Year’s budget proposals within the available budget ceilings and in compliance with the existing budget classifications/codes and chart of accounts.

1.2. All Ministries, Departments and Agencies (MDAs) as well as all other government institutions should

ensure that this Call Circular is fully complied with in order to ensure that next year’s budget is robust, realistic, credible and consistent with the Government’s fiscal strategy, ANIDS and the MDGs.

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2.0 General Guidelines

In preparing the budget proposals for your Ministry/Department/Agency, the following general guidelines should be strictly observed:

2.1 Aggregate Resource Envelope of the State for 2014 Fiscal Year has been determined as shown below.

This has been based on reliable economic and fiscal indices and realistically determined with the State’s revenue forecast model. It is within this Aggregate Resource Envelope that all MDA budgets are formulated:

IGR N8,415,001,432.00

Federal Allocation (FAAC) N50,303,809,302.00

VAT N12,512,470,218.00

Capital Receipts N15,851,000,000.00

Aggregate Resource Envelope N87,082,280,952.00

2.2 Budget ceilings for both capital and recurrent expenditure provided in this circular MUST be strictly

adhered to. The budget ceilings are the maximum amounts that would be available to each MDA based on forecast revenues of the Government and therefore should not be exceeded in the estimation of the personnel costs, other recurrent expenditure estimates and the capital estimates.

2.3 Policies, targets and strategies being pursued by your organization should be affordable and thus

consistent with your budget proposals. This means that your budget proposals should be both realistic and attainable, and as such should translate effectively into the attainment of your policy objectives and goals.

2.4 Revenue projections must be realistic and comprehensive. The revenue projections should include

indicative estimates for two outer years of 2015 and 2016.

2.5 On-going projects and their funding requirement must be considered in the first instance before new ones are admitted into the budget. Please be guided by the MDGs and ANIDS in prioritizing your projects. As much as possible, MDAs should reflect the outcome of the 2014 Budget Forum in their submissions.

2.6 Commissioners and Permanent Secretaries have the primary responsibility to ensure that estimates are in

accordance with budget ceilings; adhere to the budget guidelines and formats; and are submitted on time to the Ministry of Economic Planning and Budget; and

2.7 All MDAs in preparing budget estimates, should be guided by the existing Rules and Regulations of the

Civil Service and any other financial laws, rules and regulations of the State, including any other State or Federal Government Circulars as applicable to Anambra State.

3.0 Policy Thrust and Priorities for the Budget

This is aimed at streamlining sectoral programmes and projects within the frame work of the medium

term plan. Each sector and sub-sector has critical needs, the fulfilment of which will move the State to the

next level in terms of socio-economic development. The various competing needs of different sectors

should, for reasons of acute resource constraints, be prioritized and the programmes and projects

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necessary to address them properly, sequenced in line with medium term framework. Specifically, the

2014 budget focuses on:

3.1 Accelerating and sustaining the tempo of implementation of pro-poor programmes in the State;

3.2 Ensuring that the budget is gender and socially inclusive;

3.3 Maintaining a peaceful and secure environment suitable for private investment;

3.4 Encouraging Public Private Partnerships (PPPs); and

3.5 Improvement of public financial management to ensure greater accountability and efficient public

spending.

4.0 Revenue 4.1 Revenue Projections and Actuals

A paramount principle of the Government is that the State Budget must be realistic and thus credible in regard to both its revenue and expenditure projections. All revenue generating MDAs are therefore advised to make realistic revenue projections based on all exploitable sources of revenue for the 2014 fiscal year. All revenue projections for the year 2014 should be submitted using Annexure I. Also indicate the actual monthly revenue generated up to 30th June, 2013.

4.2 Actual revenue for the preceding year should be shown in the appropriate columns on the template. Evidence of lodgements of all revenues collected to date in the immediate preceding year must also be made available to the Ministry of Budget and Planning (see Annexure I).

5.0 Recurrent Estimates

5.1 Recurrent Expenditure Returns: Recurrent expenditure returns should be carefully calculated and reflected in Annexure II. 6. Personnel Costs: 6.1 Generally, Personnel Costs should show the total salaries and allowances for all bona fide civil servants

in each MDA. In order to have realistic personnel costs, the chief executives of the MDAs are required to ensure that every post being provided for is truly an established post as in Annex III.

6.2 The computation of staff personnel costs (salaries and allowances) should be based on the minimum

wage using the salary chart supplied by the Office of the Head of Service. The nominal Roll, Annex IV is to be joined to Detailed Personnel Cost (Annex III).

6.3 MEDIUM TERM EXPENDITURE FRAMEWORK

MDAs should also spell out their Medium Term projected recurrent expenditure for 2014 – 2016 using Annexure V.

6.4 Other allowances attributable to Personnel Costs should be provided at the approved existing rates.

The format for Personnel Costs Estimates should be in line with the 2013 Approved Estimates. The

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supporting Nominal Roll, which should be certified as correct by your Head of Department, should be as per proforma in Annexure IV. Specific provision should be made for staff Leave Allowances based on staff salaries in line with the existing rates. Please note that Officer cadre posts will not be utilized for promotion of staff in the Executive/Assistant cadre and vice versa.

6.5 Overhead and Subventions

Proposals for Overhead costs should be made in line with detailed apportioned Overhead Costs as approved for 2013. The proposals should reflect the actual position as evidenced from your Recurrent Expenditure Returns pattern up to 30th June, 2013. Controlling Ministries should extend the call circular to the Parastatals under them and scrutinize properly the Personnel Cost and Overhead Cost Estimates proposals before making considered recommendations. Remember that some Parastatals have been merged to their various originating Ministries, such as Rural electrification etc.

6.6 Statutory Expenditure

Ministries/Departments that have statutory bodies should prepare their own detailed Estimates of Statutory Expenditure, in line with control responsibility.

7.0 Other instructions

In compiling the Personnel Costs, the following should be noted and observed:

7.1 The most current nominal roll should be used to project personnel costs; 7.2 No abbreviations will be allowed for any established post. Every post must be written in full to avoid

confusion; 7.3 Nominal Rolls must reflect financial provisions made for officers only in the MDAs where they are

paid, i.e. their pay points. Officers serving in non- scheduled establishments will be provided for in their parent Ministry/Department/Agency;

7.4 The authority backing such allowances is to be attached to the Organization’s proposal; 7.5 Care should be taken in computing the Personnel Costs as the Ministry will neither tolerate

mistakes/oversights made by Organizations nor undertake to make corrections on wrong submissions made. The practice by which Organizations ask for corrigenda after the approved estimates have been published based on their wrong submissions will no longer be entertained.

All submissions on Recurrent Estimate should be sent to SSA Budget Office, Government House. For further information or clarification on Recurrent Estimate please contact SSA on Budget, Government House, Awka.

8.0 Capital Estimates 8.1 Capital expenditure projections should be guided by ANIDS and MDGs and should be done in

accordance with the approved budget ceilings for each MDA.

8.2 In projecting Capital expenditures for Fiscal Year 2014, MDAs must be guided by the sector policy, strategies and targets and the Millennium Development Goals. Thus, priority should be placed on those projects that will impact positively on the welfare of the populace.

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8.3 The Ministries, Departments and Agencies should accord priority to the completion of on-going projects/programmes before allocations are made for new projects.

8.4 At all times, Due Process must be followed in the procurement of goods and services and award of

contracts during budget implementation to ensure value for money. 8.5 Monitoring of Capital Projects:

In line with the reforms in the budgetary process and the need to ensure credible budget implementation and fiscal discipline, a schedule for the monitoring of the implementation of capital projects by the Ministry of Economic Planning and Budget should be completed as shown in Annex C.

9.0 General Notes on Capital Estimates In preparing capital estimates, attention should be paid to the following templates:

9.1 Annexure VI – 2014 Draft Capital Estimates Format 9.2 Annexure VII – Programmes/Projects Supported by External Agencies Including FGN and Development

Partners 9.3 Annexure VIII – Mid Year Report of 2013 Capital Expenditure Implementation 9.4 Annexure IX - Medium Term Capital Expenditure Projection (2014 – 2016)

Please be guided by the details as shown in the aforementioned templates.

10.0 Parastatals and Tertiary Institutions:

The guidelines on the preparation of Revenue, Nominal Rolls, Personnel and Overhead Costs are also applicable to all Parastatals and Tertiary Institutions.

11.0 Budget Ceilings As indicated above, an important feature of the Budget Call Circular is the issuance of budget ceilings

to the MDAs. This is to ensure that all MDAs prepare and submit realistic budget proposals in accordance with their priorities and with prior knowledge of the existing resource constraint. It is important to note that the budget ceilings were arrived at after a realistic projection of resource picture using the State’s Revenue Forecast Model. Accordingly, each MDA expenditure ceiling must be seen as the absolute limit within which its budget proposal is formulated. Thus, attached to this Call Circular is the Detailed Overhead Costs (Annexure A), Capital Budget Ceilings 2014 (Annexure B), and Comprehensive Schedule of Bilateral Discussions for 2014 Capital Budget proposals (Annexure C).

12.0 Formats and Templates:

12.1 MDAs are strongly enjoined to study carefully the formats and templates and exercise due diligence in

providing all necessary information. Ministries/Departments are strongly advised to constitute Internal Draft Estimates Committees to consider proposals before the final draft is submitted.

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12.2 The timetable for meetings for defence of your proposals is hereby attached. Please note that any proposals made that are not in compliance with the above guidelines will be rejected.

12.3 MDAs are hereby requested to submit their proposals for the 2014 budget in accordance with this

Budget Call Circular and the attached formats and templates, five sets each, and soft copies (CD) on or before 10th August, 2013.

For further information or clarifications on Capital Estimates, please contact THE PERMANENT SECRETARY, MINISTRY OF ECONOMIC PLANNING AND BUDGET, JEROME UDOJI SECRETARIAT COMPLEX, AWKA.

Please accept my best regards.

Prof. Chinyere Stella Okunna Hon. Commissioner/Chief of Staff Ministry of Economic Planning and Budget, Awka

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ANNEXURE I

RECURRENT REVENUE PROJECTIONS, 2014

MINISTRY/NON-MINISTERIAL AGENCY ______________________________________

Org/Sub/Org Details of

Revenue

Approved

Estimates 2013

(N’M)

2014

Proposed

(N’M)

Actual Revenue

Jan. – June 2012

(N’M)

Remarks

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ANNEXURE II

RECURRENT EXPENDITURE RETURNS, JANUARY – JUNE 2013

MINISTRY/NON-MINISTERIAL AGENCY ______________________________________

ORGANIZATIONAL CODE: __________________________

Financial

Classification

Code

Details of Expenditure Approved

Estimates

2013

Authorized Expenditure

Jan. – June, 2013 (Nm)

Cumulative

Expenditure to date

Jan – June, 2013

(Nm)

Balance

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ANNEXURE III

DETAILED PERSONNEL COSTS

MINISTRY/NON-MINISTERIAL AGENCY ____________________ ORGANIZATIONAL CODE: ______________

Item No. Details of Expenditures ESTABLISHMENT FINANCIAL PROVISION

2014 2013 2014 2013

N N

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ANNEXURE IV

MINISTRY/NON-MINISTERIAL AGENCY ______________________________________

NOMINAL ROLL

Item

No.

Estab.

2013

Bodies.

Present

Estab.

2014

Name of Officer

Rank/GL

Date of Last Promotion

Salary 2013

Salary 2014

Rent. Supp.

Transport Allowance

Other Allowance

Total

(10 -12)

Leave Allowance

Remarks

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ANNEXURE V

MEDIUM TERM RECURRENT EXPENDITURE PROJECTIONS (2014 – 2016)

MDA

Proposed 2014

N’M

Proposed 2015

N’M

Proposed 2016

N’M

Personnel Overhead Total Personnel Overhead Total Personnel Overhead Total

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ANNEXURE VI

2014 DRAFT CAPITAL ESTIMATES FORMAT

Sector………………………………… Subsector…………………….……………………. Expenditure Org/Financial Code………………………....................................... Implementing Agency……………………………...............................................

Org/ Financial Code

Project Title Project Description/ Justification

Project Location MDG being Addressed

Approved Estimates 2012 NM

Actual Expenditure 2012 NM

Actual Expenditure Jan-June, 2013 NM

Proposed Expenditure 2014 NM

Notes: (a) Location is either state-wide or a particular LGA--specify as appropriate (b) Indicate the MDG number from 1-8. There are 8 goals (c) Briefly describe the projects and provide justification for them (d) Projects should be tied to programmes which address specific development/sectoral objectives

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Annexure VII

PROGRAMMES/PROJECTS SUPPORTED BY EXTERNAL AGENCIES ( FGN, MULTILATERAL OR BILATERAL)

Sector…………………………………………… Subsector……………………….

Expenditure Org/Financial Code…………………… Implementing Agency……………………………..

Programme/Project Title

Description of Programme/Project

Approved Estimates

2012 (Nm)

Actual Expenditure 2012 (Nm)

GCCC Paid Jan- June 2013 (Nm)

Actual Draw Down Jan-June 2013 (Nm)

Proposed Allocation 2014 including GCCC (Nm)

Notes:

1. Proposed Allocation should be broken down into Expected draw down and GCCC provisions 2. Programmes/projects involved must be backed by MOUs/PIAs

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ANNEX VIII

MID-YEAR REPORT OF 2013 CAPITAL EXPENDITURE IMPLEMENTATION PROGRESS

Sector…………………………………… Subsector……………………………………………

Expenditure Head……………………… Implementing Agency……………………………..

FINANCIAL CLASSIFICATION CODE

PROJECT TITLE

Approved Estimates 2013 N’m

Actual Expenditure (Jan – June 2013) N’m

Physical Achievements (broken down into major activities under the Project)

REMARKS (ON LEVEL OF ACHIEVEMENT)

e.g

3310000/221201

Erosion Control

Programmes/projects

in Anambra State

1,308.000 300.000 a) Conduct of Studies on 5 active erosion sites

Final Reports written and

submitted by Consultant

b) Completed 3 On-going Erosion Control Projects at Nsugbe, Iyiagu Awka, & Judiciary Complex Awka

Final Certificates prepared

awaiting payments

c) Commenced 2 No Erosion Control Projects at Oko & Ogwuari Nsugbe

Mobilization Fee paid to the

Contractors

e.g

2610000/212141

Neem Fertilizer

Factory Amawbia

114.000 50.000 Roofing level attained for factory and

administrative buildings (80% level of

completion achieved)

Installation of equipment to

be completed in the 4th

quarter of 2011

Note: This template justifies implementation progress and utilization of approved funds for the period January – June 2013.

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ANNEXURE IX

MEDIUM TERM CAPITAL PROJECTION (2014 – 2016)

MINISTRY/NON-MINISTERIAL AGENCY ______________________________________

Org/Financial code

Project Title Project Description 2014 Nm

2015 Nm

2016 Nm

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ANNEXURE A

DETAILED OVERHEAD COSTS

MINISTRY/NON-MINISTERIAL AGENCY ______________________________________

ORGANIZATIONAL CODE: ________________________________________________

Financial code Project Description Amount Nm

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2014 PROJECTIONS (RESOURCE PICTURE) =N87.081 BILLION

Assumed Recurrent/Capital Expenditure Ratio = 40% : 60% based on actual trends overtime and in

recognition of the reform standard.

This translates to N52.250 billion for Capital Budget and N34.823 billion for Recurrent Budget. In the

circumstance, we have a Capital Budget Ceiling of N52.250 billion which is spread to sectors according to

priority and capital intensive nature of programmes and projects. The recurrent ceiling of N34.832 billion is

spread to aggregated recurrent heads of expenditures based on actual trends over time.

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ANNEXURE B

2014 CAPITAL BUDGET ENVELOPE FOR MDAS

(A) ECONOMIC: FINANCIAL CLASSIFICATION

CODE SECTOR 2014 PROPOSAL N’m

2510000/211200 Agriculture (Crops) 597.000

2510000/211400 Livestock and Veterinary 100.00

2510000/211500 Agriculture (Fisheries) 10.000

2520000/212100 Agriculture (ADP) 300.000

2610000/211200 Commerce & Industry 1,100.000

2910000/212300 Finance 2,060.000

3320000/211500 Environment (Forestry) 10.000

3410000/214300 Land Transport (Road//Bridges), Works

16,100.000

3810000/212400 Rural Electrification 600.000

4010000/212401 Science, Technology and Mineral Resources

100.000

401000/212600 Ministry of Transport 500.000

TOTAL ECONOMIC SECTOR 21,477.000

(B) SOCIAL: FINANCIAL CLASSIFICATION

CODE SECTOR 2014 PROPOSAL N’m

2710000/212400 Health 1,588.000

2710000/212400 Education 4,100.000

3010000/214100 Information, Culture & Tourism 600.000

3310000/213100 Environment Health 20.000

3610000/221200 Women Affairs and Social Development-

400.000

3710000/216100 Youth and Sports 550.000

TOTAL SOCIAL SECTOR 7,258.000

( C) ENVIRONMENTAL: FINANCIAL CLASSIFICATION

CODE SECTOR 2014 PROPOSAL N’m

3210000/233200 Town and Country Planning 650.000

3310000/221100 Environmental Development, Sewerage & Drainage

2,300.000

3810000/221200 Water Supply and Resources- 2,000.000

3810000/222200 Fire Service 80.000

4810000/221200 Housing and Urban Development 1,200.000

TOTAL ENVIRONMENTAL SECTOR 6,230.000

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(D) GENERAL ADMIN.: FINANCIAL CLASSIFICATION

CODE SECTOR 2014 PROPOSAL N’m

2010000/241300 Government House 8,038.000

2110000/241300 Deputy Governor’s Office - 120.000

2210000/241200 House of Assembly 600.000

2310000/241300 S.S.G.’s Office 800.000

2410000/241300 Head of Service- 700.000

3110000/241100 Justice 150.000

3510000/241300 Ministry of Economic Planning & Budget

500.000

3520000/241300 State Bureau of Statistics 40.000

3910000/241300 Local Government and Chieftaincy Affairs

80.000

4110000/241300 Office of the State Auditor General 18.000

4120000/241300 Office of the Auditor- General for Local Government

10.000

4210000/241300 Civil Service Commission 45.000

4410000/241100 Judiciary (High Court) 190.000

4420000/241100 Judiciary (Court of Appeal) 200.000

4510000/241100 Judiciary Service Commission 70.000

4610000/241300 Independent Electoral Commission

500.000

TOTAL GENERAL ADMINISTRATION

12,061.000

AGGREGATE FIGURES 2014 PROPOSAL

N’m

TOTAL ALL SECTORS (A+B+C+D): => 47,026.00

Contingency Reserve - 5% of total 2.612 Planning Reserve - 5% of total 2.612 Grand Total /Proposed Capital Budget Size 52,250.000

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ANNEXURE C

COMPREHENSIVE SCHEDULE OF BILATERAL DISCUSSIONS FOR 20143 BUDGET PROPOSALS

VENUES: RECURRENT ESTIMATES – Office of the SSA (Budget), MEPB, GOVT HOUSE, Awka

CAPITAL ESTIMATES – Inter-Agency Room, Ministry of Economic Planning & Budget, Ground Floor, Jerome Udoji Secretariat, Awka

DATES MDAs CAPITAL

ESTIMATES (Time)

Monday 19th August 2013

Ministry of Women Affairs &

Social Development 10.00am - 11.00am

Ministry of Youth and Sports 11.00am - 12.00 noon

Ministry of Housing and Urban

Development 1.00pm - 2.00pm

Tuesday 20th August 2013 Government House; Special

Duties & Transport 10.00am - 11.00am

Deputy Governor’s Office 11.00am - 12.00 noon

House of Assembly 1.00pm - 2.00pm

Wednesday 21st August 2013 S.S.G.’s Office 10.00am - 11.00am

Head of Service 11.00am - 12.00 noon

Civil Service Commission 12.00pm - 1.00pm

Ministry of Justice 2.00pm - 3.00pm

Thursday, 22nd

August, 2013 Independent Electoral

Commission 10.00am - 11.00am

Board of Internal Revenue;

Accountant- General’s Office 11.00am - 12.00 noon

Office of the State Auditor

General 12.00pm - 1.00pm

Office of the Auditor- General

for Local Government 2.00pm - 3.00pm

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DATES MDAs CAPITAL ESTIMATES

(Time)

Friday 23rd

August 2013 Judiciary (High Court, Court of

Appeal, Judiciary Service

Commission)

10.00am - 11.00am

Ministry of Finance 11.00am - 12.00 noon

Ministry of Economic Planning

& Budget (Including State

Bureau of Statistics)

1.00pm - 2.00pm

Monday 26th August 2013

Ministry of Agriculture

(Including ADP) 10.00am - 12.00 noon

Ministry of Commerce &

Industry 1.00pm - 3.00pm

Tuesday 27th August, 2013 Ministry of Environment 10.00am - 12.00 noon

Ministry of Lands, Survey &

Town Planning 12.00pm - 1.00pm

Ministry of Works 2.00pm - 3.00pm

Wednesday 28th August, 2013

Local Government and

Chieftaincy Affairs 10.00am - 11.00pm

Ministry of Public Utilities &

Water Resources 11.00pm - 12.00 noon

Ministry of Science, Technology

& Mineral Resources 1.00pm - 2.00pm

Thursday 29th August 2013 Ministry of Health 10.00am - 11.00am

Ministry of Education 11.00am - 12.00 noon

Ministry of Information, Culture

& Tourism 1.00pm - 2.00pm

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ANNEXURE D

TIME TABLE FOR REVIEW OF 2014 DRAFT RECURRENT ESTIMATES

DATES MDAs RECURRENT ESTIMATES

(Time)

Monday 19th August 2013 Deputy Governor’s Office 10.00 am

Accountant-General’s Office 10.00 am

Local Government Audit 1.00 pm

Exam Development Centre 1.00 pm

Special Duties 2.00 pm

Tuesday 20th August 2013 Ministry of Information 10.00 am

Ministry of Justice 10.00 am

Ministry of Science and Tech 1.00 pm

Government Press 1.00 pm

Wednesday 21st August 2013 Board of Internal Revenue 10.00 am

Ministry of Youth and Sport 10.00 am

Judicial Service Commission 1.00 pm

Ministry of Housing 1.00 pm

Thursday 22nd

August 2013 Ministry of Works 10.00 am

Civil Service Commission 10.00 am

Min of Commerce and Industry 1.00 pm

Ministry of Local Government 1.00 pm

Ministry of Local Government 2.00 pm

Friday 23rd

August 2013 Ministry of Health 10.00 am

Ministry of Education 10.00 am

State Audit 1.00 pm

Ministry of Environment 1.00 pm

Monday 26th August 2013 Head of Service 10.00 am

Ministry of Lands and Survey 10.00 am

Ministry of Public Utilities 1.00 pm

Ministry of Planning & Budget 1.00 pm

Tuesday 27th August 2013 Secretary to the State Govt Office 10.00 am

Abuja/Lagos Liaison Office 10.00 am

Ministry of Finance 1.00 pm

Ministry of Women Affairs 1.00 pm

Forestry 2.00 pm

Wednesday 28th August 2013 Legislature 10.00 am

Hospital Management Board 10.00 am

State Ind. Electoral Commission 1.00 pm

Chieftaincy & Town Union Matters 1.00 pm

Thursday 29th August 2013 Government House 10.00 am

Ministry of Agriculture 10.00 am

Judiciary & Customary Court of Appeal 1.00 pm

Friday 30th August 2013 Bureau of Statistics 9.30 am

State Education Commission 10.00 am