By Lawrence Williams
The Ministry of Finance has released the Budget Call Circular (BCC) to assist government ministries, departments, and agencies (MDAs) in preparing for the FY2024 budget cycle and the two subsequent years which cover the medium-term expenditure framework (MTEF) period of FY2024 to FY2026. The BCC provides guidance on the preparation of budget proposals, including the format and style of the proposals, as well as the process for submitting them. The BCC also includes information on the government’s priorities for the upcoming fiscal year, as well as the fiscal constraints that MDAs will need to take into account when preparing their budget proposals.
In its correspondence to MDAs, the ministry urges them to focus on operational activities, programs, and projects for FY2024 that would help the government achieve its top priorities under the Big Five Game Changers outlined in the ruling party’s manifesto: Feed Salone (Agriculture), Human Capital Development, Youth Employment Scheme (YES), Revamping the Public Service Architecture, and Technology and Infrastructure. MDAs are also strongly encouraged to submit proposals that will have a positive impact on resource allocation and budget execution. This means that proposals should be well-thought-out and realistic, and should have a clear plan for how they will be funded and implemented.
The BCC requires MDAs to submit a comprehensive list of all current and prospective revenue streams, including data on actual revenue collected in the last two years, medium-term revenue projections, and deposits on the sale of contract bid documents. This information will be used by the Finance Ministry to assess the financial health of each MDA and to determine whether they are meeting their revenue targets. The ministry also uses the information to identify potential areas of improvement and to make recommendations to MDAs on how to improve on revenue mobilisation. In addition to the revenue information, MDAs are also required to submit tax and non-tax proposals for discussion during budget hearings that will begin in early September. These proposals will be considered by the ministry in preparing the FY2024 budget.
According to the ministry’s forecasts, the total revenue for FY2024 is expected to be around NLe21 billion, while expenditures and net lending will increase by 26%, from NLe18.8 billion in FY2023 to NLe23.8 billion in FY2024, resulting in a deficit of NLe2.8 billion. Meanwhile, 73% of the revenue projections will come from domestic sources, while 27% will come from grants. The government is expected to finance the deficit through a combination of domestic and external borrowing.
