MINISTRY OF FINANCE AND BUDGET
INTRODUCTION
The Ministry of Finance and Budget has six departments. These are:
(1) Finance & Administering.
(2) Treasury
(3) Expenditure
(4) State Finances.
(5) Budget
Research and Statistics
TREASURY DEPARTMENT
The Treasure Department is the Accountant General who is the custodian of the state funds. The Department has four directorates, namely: the Management Service, the Cash Control, Main Accounts, Central Pay Office and the Computer Center. It has fifteen Cash Offices in fifteen Local Government Areas of the state. llejemeje Local Government area is yet to have its Treasury Cash Office. The Treasury Cash Offices are responsible for checking the books of revenue collectors and monitoring of revenue in their localities. They also handle payment of civilian pension. The Accountant General is the Chief Accounts Officer of the State and custodian of the government funds. He attends the Federation Accounts allocation Committee (FAAC) meetings along with the state Commissioner for Finance and Budgets on behalf of the State Government on monthly basis. He is the principal signatory to gevernment cheques. He prepares and presents the main memoranda at Local Government Joint Allocation committee (FAAC) meetings. He also heads the Sub‑Technical Committee (FAAC).
INTRODUCTION OF DIRECT BANK LODGEMENT SYSTEM (DBLS)
The Direct Bank Lodgment System (DBLS) was introduced in March 2001 to enhance the internally generated revenue (IGR) accruing to the State. The system was fashioned and introduced to block loopholes and revenue of leakage through direct payment of revenue to banks. Since the introduction of the system, the internally generated revenue of the state has improved tremendously.
FOREIGN AND DOMESTIC LOANS
The ministry is charged with the negotiation of both foreign and domestic loans on behalf of government. In view of the inadequate ‑financial resources. Idle to the State and the commitment of government towards making life more meaningful to its citizens, funds from alternative sources like short‑term loans are obtained to complement the resources coming from the Federation Account and Internally Generated Revenue.’ The state government has not taken any foreign loan since inception in 1996. However, we inherited some foreign loan repayment from the old Ondo State.
ESTABLISHMENT OF DEBT MANAGEMENT UNIT
In its bid to assist the State Government in record keeping of the state government expenditure management, the Department for International Development (DFID) had funded the establishment of the Debt Management Unit, an outfit to achieve this lofty objective, in the Ministry. The State Executive Governor commissioned the milt on 5th February 2004
EXPENDITURE DEPARTMENT
The Expenditure Department performs, among others, the following schedule:
a. Preparation of the State Monthly Cash Flow Projection for consideration by the state Cash Allocation Committee. Secretariat for the Cash Allocation Committee
b. Secretariat for the Cash Allocation Committee.
c. Secretariat for the Cash Allocation committee
d. Appraisal of request for found from various agencies to the State Government Assurance of Release Warrants for approved items of Expenditure by the appropriate Authority, and
e. Release of subvention to government parastatals and tertiary institutions.
CASH ALLOCATION COMMITTEE:
Since the inception of the present administration in May 2003, the Cash Allocation Committee headed by the Executive Governor has been meeting. Monthly to appropriate fund accruing to the state from Federation Account and internally Generated Revenue with a view to ensuring the judicious disbursement of same.
BUDGET DEPARTMENT
The Budget Department is primarily responsible for preparing, presenting and producing the State’yearly budgets.
The department is saddled with the preparation of the annual budget of the State Government. The process for this starts as early as July/August each year when; the call circular is issued to Ministries /Department. Calling for their contributions towards the annual budget after which the Pre‑Treasury Board meeting. At the meetings, the revenue base as well as issues on other Charges, grant to parastatals, transfer to other funds are discussed. The capital budget Is handled by the State Planning Commission. Details of the outcome of the Pre‑treasury Board Meeting are analyzed and this forms the basis for the Treasury Board meeting chaired by the Executive Governor.
Based on the approval of the Executive Council, the Executive Governor will present the draft estimates through a budget speech to the State House of Assembly accompanied by a bill. If the House of Assembly passes the bill, the Executive Governor assents the document to become an Approved Budget.
Since the approved budget may not take care of all government expenditures particularly the ones not envisaged , there is always the need for a supplementary budget before the year runs out.
The Department is also responsible for the production of the following publications:
a. Annual Budget
b. Supplementary Budget
c. Budget Speech
d. Book of Estimates
e. The Budget Analysis
f. Mid‑Year Budget Review
BUDGET MONITORING UNIT
The function of this unit is to monitor the actual performance of the budget on monthly basis. This is a very important function and it has the Expenditure department as the head.
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