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Imo State.Cdr 2 0 2 0 B U D G E T Imo State Government REBUILDING IMO BUDGET ONE I m o S t a t e 2 0 2 0 B u d g e t FOREWORD This is the first time in the history of B u d g e t , B u d g e t a s s u m p t i o n , Imo State, to publish the Citizens a p p r o v e d B u d g e t s i z e , h o w Budget. It is gratifying that the first Government gets the fund, how Citizens Budget to meet the World Government spends the fund, Bank directives on Open Budget available Aids and Grants, Recurrent System (OBS) is taking place under Expenditure, Capital Expenditure and the able leadership of His Excellency Projects target for the appropriation the Distinguished Senator Hope year. Uzodimma, the Executive Governor of Imo State. In addition, projects estimated amount and projects location are The purpose of the Citizens Budget is component parts of the Citizens for the Citizens to participate in the B u d g e t t o m e e t t h e O p e n decision process of sitting projects in Government Partnership their various communities. In this Budgetary philosophy, in line with way, the Citizens take ownership Open Budget System (OBS). responsibility and understand the usefulness of these Government Finally, it is with sense of humility that Projects towards their Economic I, as the Honourable Commissioner sustainability. for the Ministry of Budget, Economic Planning and Statistics (MBEPS) The Citizens Budget is equally an expresses my gratitude, to all the staff appropriation instrument supported of Ministry of Budget, Economic by the World Bank to encourage the Planning and Statistics (MBEPS) for enforcement of State Financial m e e t i n g t h e W o r l d B a n k Transparency, Accountability, requirements and for the Publication Sustainability (SFTAS) program in all of the first Citizens Budget in Imo the States in Nigeria. It is believed State. that the Citizens Budget Template will be found useful and acceptable by Hon. C. C. Osuala, PhD. Imo Citizens for purpose of tracking Ministry of Budget, Economic public expenditure. Planning and Statistics (MBEPS) Imo State. The scope of the Citizens Budget include: Types of Budget, Budget Glossary, procedure of preparing a 02 I m o S t a t e 2 0 2 0 B u d g e t INTRODUCTION Time and money are scarce resources to simple and less ambiguous and should be all individuals, Government and as well widely and easily accessible by different organizations. The efficient and effective users. use of these resources requires planning. Planning alone however is not sufficient. Furthermore, under the State Fiscal Control is also necessary to ensure that Transparency, accountability and plans actually are carried out. Thus, sustainability programs for result, the Budget is a tool that manages Plan and Citizens Budget has to be published controls the use of scarce fiscal online on an official State website for resources. easy accessibility by the general public. Budget is the engine that guides the WHAT IS A BUDGET? A budget is a list of activities of the Government and it is just planned expenses and revenues. It is a a written plan that details the financial plan for saving and spending for the near goals of the Government for a future future. It can also be referred to as a period as regards Revenue and comprehensive list of Expenditure, Expenditure. Revenue and Capital Project over a specific period of time. However, to make the rural dwellers feel the impact of Government at the grass- Budget is prepared and approved prior to root level, Citizens Budget should be the Budget Period and may show income, implemented and simplified to the Expenditure and the Capital to be understanding of the citizens since they employed. It foretells details of revenue are the end-users of the budget. expected to be generated by the Government, grants and loans expected Citizens Budget stands out as the only to be received and details of programmes document developed by Government and projects that government plans to that is exclusively meant for the general spend the common wealth for the benefit public. Hence, it enables citizens to of all. understand how Government is raising and spending its resources as well help to WHAT IS THE MAIN PURPOSE FOR A facilitate the engagement between BUDGET? citizens and their government for improved service delivery and societal 1. T o c o n t r o l r e s o u r c e s a n d development. implementation guidelines. 2. For estimation of future projects The Citizens Budget is based on the 3. It is an important tool for decision State's Approved Annual Budget and its making, monitoring economic objectives are to present State's performance and forecasting income budgetary information in a manner that is and expenditure. easily digestible for citizens. To make the most of a Citizens Budget, it should be 03 I m o S t a t e 2 0 2 0 B u d g e t INTRODUCTION TYPES OF BUDGET other words, it should be a gateway to more information. Citizen Budget is a BALANCED BUDGET: This means when budget that enables the citizen to the estimated Government expenditure understand how government is raising is equal to the expected Government and spending money. Therefore, it should receipts in a given year. It is a budget in be more simple, less technical version of a which the expenses do not exceed government's Budget that is produced revenue. This type of budget help the timely and incorporate information that is government to maintain economic relevant for the general public. stability if implemented successfully and it also helps abstain/refrain from IMPORTANCE OF A CITIZEN BUDGET: imprudent spending. But the setback is Citizen budget is important because it that it restricts the government from e n a b l e s c i t i z e n s t o u n d e r s t a n d spending on public welfare and does not government spending as it affects their offer solutions to problems such as daily lives from the taxes removed from unemployment. their pay cheques to the social needs of all citizens. It is also a gateway to more SURPLUS BUDGET: This means when information. the expected government revenue from taxation, Customs Duties, etc exceed the They are not meant to replace more estimated government expenditure in a detailed Budget Document, but they are particular year. This type of budget is important for introducing citizens and Civil needed at times of inflation to reduce Societies to the knowledge they need to aggregate demand. participate as informed stakeholders and hold the government accountable for how NOTE: Inflation means a general increase it manages public money. in prices and fall in the purchasing value of money. Furthermore, government ensures citizens have a firm understanding of the DEFICIT BUDGET: This means when the many ways the budget affects their lives; estimated government expenditure presenting budget information in a more exceeds the expected government accessible format than more standard revenue in a given year. That is, spending Budget Document to enable the general exceeds income. Government usually p u b l i c u n d e r s t a n d g o v e r n m e n t finances the Budget Deficit by selling programmes and projects. bonds to the private sector or through public borrowing. It can be from Thus, citizens have to know the multilateral institutions, investors, Capital constraints the government is facing in its markets or from banks spending, whether in terms of revenue and expenditures. WHAT IS A CITIZEN BUDGET? Citizen Budget fosters greater understanding of how public money is being managed. In 04 I m o S t a t e 2 0 2 0 B u d g e t BUDGET GLOSSARY Total Budget Expenditure: This is the total borrowing/loans so do not need to be paid back amount of budget for the given year. It is the after it has been used for the intended project summation of both the Recurrent Expenditure and set of expenditures. and Capital Expenditure as approved by the State House of Assembly and assented to by Loans: Another source of funds for the the Executive Governor. government to finance the budget is a loan. Government borrows to finance its annual This is how the government plans to spend, on budget generally when revenues and grants behalf of the citizens, according to the are not enough to fund all the expenditures in r e s o u r c e s i t m a n a g e s . G o v e r n m e n t the budget. Loans could be domestic and or expenditure has two main categories: foreign sources. Loans can be for a specific Recurrent and Capital Expenditure. project or set of expenditures or could be used to finance the general budget expenditures. Revenue: Revenue is all the amount of money the government believes it will collect during Why does the Government borrow? When the the year from recurring taxes, levies and fees; government intends to spend more money put simply, this refers to money collected on than they expect to collect as revenue and behalf of citizens. States in Nigeria receive a receive in grants, the budget is in deficit.
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