Borno State Government on Friday warned Ministries, Departments and Agencies (MDAs) to avoid spending out their budgetary provisions and threatened that any defaulting agency will be penalized.
The warning came on the heels of the payment of the sum N12 billion by the state government to offset gratuities of 4,862 retirees in the state and local government civil service from 2013 to 2017.
The state Commissioner for Finance, Budget and Economic Planning, Hon Adamu Lawan, gave the warning on extra-budgetary spending by the MDAs at a media briefing in Maiduguri, the state capital.
He explained the 2021 approved budget tagged ‘The People’s Budget of Recovery and Consolidation’,, totaling about N248.3 billion, as against N108.3 budgeted last year was on an accrual basis.
The commissioner clarified: “The N248.3 billion 2021 budget has Recurrent Expenditure of N69,131,252,000.00 and Capital Expenditure of N179,261,364,000.00, which represents 27.83% Recurrent Expenditure and 72.17% Capital Expenditure, with a budget of COVID – 19 Response at the total sum of about N23,966,744,000 budgeted for and expenditure of about 9.65% of the total budget.” According to him, the 2021 budget is designed to sustain the gains of the government’s developmental efforts in the last 20 months.
Lawan pointed out that the budget was based on the newly domesticated Borno State Chart of Account which is in compliance with the Federal Government National Chart of Accounts that is in line with the International Public Sector Accounting Standard (IPSAS) and in line with the 2021 Implementation Plan of the State Development Plan (SDP) tagged “our Borno our success” launched last year.
He explained that this accounted for the direction of government and approach to work with courage, judgment, integrity and dedication to ensure the state make a real difference in the lives of its people, rebuild infrastructure, revamp the economy, create jobs for the jobless, provide quality education and health services for the communities and stay in peace and tranquillity.
On the problem of extra-budgetary spending by MDAs, the commissioner said: “Despite all efforts by the Ministry of Finance, Budget and Economic Planning to curtail indiscipline, some Government agencies went to incur expenditures that are not budgeted for.
“Miscalculation and misappropriation of public funds will no doubt distort the process of the budget. It is in light of the foregoing that the attention of all Accounting Officers is drawn to adhere and operate strictly in accordance with the laid down rules and regulations.
“In addition, all request for funds either in form of a memo or otherwise must be covered by approved provisions and balance of the budget”, Lawan cautioned.