LAGOS STATE GOVERNMENT
Transcript of LAGOS STATE GOVERNMENT
LAGOS STATE GOVERNMENT Ministry of Economic Planning and Budget
2013-2015 MEDIUM-TERM SECTOR STRATEGY (MTSS)
FEBRUARY 2012
Contents Abbreviation and Acronyms
Preface Section One: Executive and Financial Summary .................................................................... 6
1.1 Budget Reforms: the Medium Term Expenditure Framework ................................... 6
1.2 Linking Government Policy and the Annual Budget ................................................... 6
1.3 Key Steps in Developing the Medium Term Sector Strategy ...................................... 7
1.4 Key Stakeholders in the Medium Term Sector Strategy ............................................. 7
1.5 Summary of the Sector’s Programmes and Related Expenditures ............................. 8
Section Two: The Sector Policy Environment and Medium Term Goals and Programmes... 9
2.1 Introduction................................................................................................................. 9
2.2 Overview of the Sector’s Institutional Structure ........................................................ 9
2.3 Summary of the Global, Regional National State and Sector Level Policy Environments ....................................................................................................................... 11
2.3.1 Global High level policies ........................................................................................ 12
2.3.2 Regional High level policies ................................................................................ 12
2.3.3 National High level policies ..................................................................................... 13
2.3.4 State and Sector High level policies ........................................................................ 13
2.4 Summary of Key Developments in the Sector .......................................................... 14
2.5 Statement of the Sector’s Mission, Vision and Core Values ..................................... 15
2.6 Summary of the Current Strategic Directions and Developmental Plans in the Sector 16
2.8 The Sector’s Goals and Programmes for the MTSS Period ....................................... 17
Section Three: Review of On-going/Existing Budget Commitments .................................. 20
3.1 Summary of the Review ............................................................................................ 20
3.2 Overview of 2010 Budget Implementation............................................................... 20
3.2.1 Summary of the Sector’s experience in implementing the 2010 budget ............... 20
3.2.2 A description of the progress made in achieving the Sector’s goals ................. 20
3.2.3 An outline of the performance of some of the larger development projects ... 21
3.3 Overview of the 2011 Budget Implementation ........................................................ 21
3.3.1 Summary of the challenges, lessons learned and constraints faced in 2011 budget implementation ................................................................................................... 21
3.3.2 Summary of key budget data (recurrent and capital) for 2010 and 2011 ......... 21
3.4 Summary of On-going/Existing Budget Commitments .................................................. 22
3.5 Scoring of the Existing Budget Commitments ............................................................... 22
3.6 Existing Budget Commitments Scorecard ................................................................. 22
3.7 Summary of Cancelled/Shutdown Projects .............................................................. 23
Section Four: 2013-2015 Medium Term Sector Recurrent and Capital Expenditures ......... 24
4.1 Statement of 2011 Indicative Ceiling ........................................................................ 24
4.2 Summary of Recurrent (personnel and overheads) Expenditures Included in the Indicative Ceiling .................................................................................................................. 25
4.3 Summary of On-going/Existing Projects Included in the Indicative Ceiling .............. 25
4.4 Summary of New Projects Included in the Indicative Ceiling ................................... 25
Section Five: Conclusion ...................................................................................................... 26
5.1 Summary of the Sector’s Aims over the Next Three Years ....................................... 26
5.2 How the Sector Plans to Achieve its Aims ................................................................. 26
5.3 Summary of Expenditures not Included in the Indicative Expenditure Ceiling: ....... 26
5.4 Monitoring and Evaluating the Sector Strategy ........................................................ 27
5.4.1 Outcome and outcome deliverables for the programmes ..................................... 27
5.4.2 Performance Indicators/Measures for outputs and outcomes .............................. 30
Abbreviations and acronyms
COFOG Classification of functions of Government
CGS Conditional Grants Scheme
GDP Gross Domestic Product
GPS General Public Service
KPI Key Performance Indicator
LASEEDS Lagos State Economic Empowerment & Developments
LASG Lagos State Government
LIRS Lagos Internal Revenue Service
MDAs Ministry, Department Agencies
MDGs Millennium Development Goals
MEPB Ministry of Economic Planning & Budget
MTEF Medium Term Expenditure Framework
MTBF Medium Term Budget Framework
MTFF Medium Term Fiscal Framework
MTSS Medium Term Sector Strategy
NEPAD New Partnership for African Development
ODA Official Development Assistance
OSSAP Office of the Senior Special Assistant to the President
SDP State Development Plan
SPAC Social Policy, Advocacy & Communication
SPARC State Partnership for Accountability Responsiveness & Capability
TPA Ten Point Agenda
UNDAF United Nations Development Assisted Fund
Preface The Lagos State Government adopted a more strategic approach to policy, planning and budgeting through the introduction of a Medium Term Expenditure Framework (MTEF) process in 2008. The Ministry of Economic Planning & Budget (MEPB) as the manager of the state resources through strategic policy planning and fiscal allocation had continue to proffer proficient means of quality service delivery
The State through MEPB is currently implementing sector wide reformed strategy known as Medium–Term Sector Strategy (MTSS). This is medium term strategic plans and operational documents relating the sector goals and programmes that will improve governance in line with the overall policy thrust of the state.
With these strategic and operational documents on ground there is need to develop a process that will assess and report on sector performance annually for evidence‐ based and informed decisions on resource allocation during the state Budget preparations. Lagos State Government had as a result, developed a process involving all Sector MDAs and other relevant stakeholders under the coordination of the Monitoring and Evaluation Department of the Ministry of Economic Planning & Budget for carrying out this annual performance review as an integral part of its Fiscal reform agenda.
Further to this delivery is the Budget Profiling Exercise targeted at building cash backup for budgeted programmes and projects defined as priority by the MDA’s in their Sector MTSS document as well as the Chart of Account reform in conjunction with the State Treasury Office (STO) of the Ministry of Finance. Remarkable achievement had been made in these directions.
This document, however, is a product of painstaking, stocktaking, analysis and consultations with all stakeholders in the sector. The State is committed to its resolve to institutionalize the process and use it to improve on Policy Planning, Budgeting and Budget implementation to enhance service delivery at all Sector of Government. The objective is to enhance sector performance which will facilitate the achievement of laudable developmental goals and targets of the Lagos State Government.
The Lagos State government is grateful to its development partners, notably the Department for International Development (DFID) under its State Partnership for Accountability, Responsiveness and Capability (SPARC) in Nigeria for their guidance and support in the conceptualization of the process and development of this document.
Accordingly, I commend this publication along with other related budgetary guidelines as a must developed material for the MDAs to ensure a link between government expenditures and State’s goal and programmes if the desired discipline in the budgetary process for sustained growth must be achieved.
Mr. Ben Akabueze Honourable Commissioner, Lagos State Ministry of Economic Planning & Budget, March 2012
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Section One: Executive and Financial Summary
1.1 Budget Reforms: the Medium Term Expenditure Framework
Medium Term Expenditure Framework (MTEF) is a multi-year (3 years) budget structure with
a top-down estimate of aggregate resources available for public spending; a bottom-up
costed sector programs by reconciliation of needs with resource constraints for sectoral
resource allocation thereby ensuring that budget execution reflects agreed plans.
On -going initiatives to reform the Lagos State budget process continue to be premised on
creating a coherent and transparent budget framework focused on channelling resources to
fund the State’s developmental needs in an efficient and transparent manner, without
compromising macroeconomic stability.
This is the framework for linking the annual spending of Ministries, Departments and
Agencies (MDAs) with government’s long and medium term strategies as articulated under
the Ten-Point Agenda (TPA) and the Millennium Development Goals (MDGs) and other high
level policy documents of government. The Medium Term Expenditure Framework that
projects likely availability of resources over a 3-year horizon (which should be documented in
a Fiscal Strategy Paper), and a series of Medium Term Sector Strategies (MTSS) that
identify goals and objectives for the key sectors of government and translates these, within
the confines of Sectoral indicative expenditure ceilings, into affordable fully costed and well
defined set of projects over the same period.
These components (including the sectoral indicative expenditure ceilings) are updated
annually by using the Program Based Budgeting to allow economic and policy changes to be
reflected and to feed monitoring and evaluation results into budget planning in a timely
fashion. The outer years (2 and 3) of the
MTSS form the basis of the annual update. This ensures consistency in planning, and
reduces the potential for projects to be left incomplete or in-operational due to lack of future
funding.
Medium Term Sector Strategy (MTSS) is part of reform process for improving the delivery
and conception of annual budget in the State. It is part of the overall plan of Medium Term
Expenditure Framework which was adopted by the State Government for its budgetary
process.
This is an activity based technique at improving strategic planning and efficiency of public
expenditure. This also aims at aligning the budget proposals of MDAs to their respective
sector policies and goals.
1.2 Linking Government Policy and the Annual Budget
We are keen at ensuring that MTSS process is institutionalized for effective allocation of
scarce resources, reduction of waste through identification of sectoral overlapping functions
and linking outcome with programmes, thereby ensuring that public spending on
programmes meets the needs of the people. The MTSS, a complementary component of the
Medium-Term Expenditure Framework (MTEF), represents a crucial link in the process of
translating the long and medium-term poverty reduction strategies of the State Government
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as articulated in LASEEDS, the TPA and the MDGs, into the spending reality of the Annual
Budget.
1.3 Key Steps in Developing the Medium Term Sector Strategy
In developing the Medium Term Sector Strategy, the Ministry of Economic Planning &
Budget commenced the implementation in 2008, in which 3 pilot Ministries, Departments and
Agencies (MDAs) were selected and assisted to develop and document their Medium-Term
Sector Strategies (MTSS). In 2009, additional seven agencies were also assisted to develop
their MTSS while other 14 MDAs were also driven in delivering their MTSS documents in
2012.
The key steps involved the Constitution of the Core Team Members on MTSS, Training of 28
nos. Sector Planning Team which include representatives of the foregoing stakeholders ,
Conduct of One-week strategy sessions at Lekki Peninsula Resort on the establishment of
the Ministry goals and programmes, Development of broad-based outputs and outcomes,
definition costing and priotization of projects, Coordination of the document by MEPB staff
and was later sent to the consultant for assessment. The MTSS document which was
developed includes:
a) Review of existing High Level Policy documents of Lagos State Government with
focus on the delivery of the GPS sectoral goal in line with the overall state policy
thrust of the State.
b) Clearly articulating medium-term (three years) goals and programmes against the
background of the overall goals of TPA and the attainment of the overall policy thrust
of the State.
c) Identifying and documenting the key initiatives (that is, projects and programmes)
that will be embarked upon to achieve goals and objectives;
d) Costing the identified key initiatives in a clear and transparent manner;
e) Phasing implementation of the identified initiatives over the medium-term;
f) Defining the expected outcomes of the identified initiatives in clear measurable terms
(KPIs)
g) Linking expected outcomes to their objectives and goals.
1.4 Key Stakeholders in the Medium Term Sector Strategy
The Ministry of Economic Planning & Budget is classified as General Public Service (GPS)
sector under the Classification of Functions of Government (COFOG).
The key stakeholders include the initial all MDAs being driven by MEPB, the development
partners. Medium Term Sector Strategy as set out in this document for the MEPB was
formulated by the Ministry Planning Team (comprising the Honourable Commissioner,
Permanent Secretary, Director of Finance and Administration, Director Economic Planning,
Director Budget, Director Monitoring & Evaluation, Director Development Partnership,
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Director Account with the assistance of the Core Planning Team and officials of the Ministry
of Economic Planning and Budget. MEPB has adopted internationally acceptable standards:
it now uses Program Based tools like MTBF, MTEF and MTSS to prepare the State budget.
1.5 Summary of the Sector’s Programmes and Related Expenditures
Table1: Programmes and expenditure
Programmes Budgeted Expenditure
2013 2014 2015
Provision of Economic Intelligence policy
Reformation of Strategy Planning Process
Review of Policy Brief on Lagos Economic Summit (Ehingbeti)
Gathering prices and local Government Statistics
Carrying out Survey on Data Bank statistics
Formulation and Preparation of State Budget
Participatory / Stakeholders Involvement Process
Projects Monitoring & Evaluation
Ensure Outcome Monitoring &Evaluation
Impact Assessment
Sourcing and facilitation of Development partnership
Co-ordinating the activities of Development Partners
Total Cost
Indicative ceiling 0 0 0
Indicative ceiling – Total Cost 0 0 0
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Section Two: The Sector Policy Environment and Medium Term Goals and Programmes
2.1 Introduction
This chapter is about to review the sector policy environment and the major team goals,
discussions about the overview of the sector’s institutional structure. The Ministry of
Economic Planning and Budget is the Central Planning Agency of the State Government and
it is responsible for the realization of the goals of Government which is translating its policy
thrust into manageable programmes, projects and activities. Over the years, it has managed
the development of planning matters as well as General Financial and Monetary matters in
the areas of Revenue and Expenditure. It has ensured this through robust policies and
annual budgets to fulfil the overarching policy goal of Government which is ‘Poverty
Eradication and Sustainable Economic Growth through Infrastructure Renewal and
Development’.
2.2 Overview of the Sector’s Institutional Structure
The Ministry of Economic Planning and Budget (MEPB) is the government institution
responsible for overall planning and budgeting activities in Lagos State.
Accordingly, the ministry operates five (5) professional/technical departments namely:
Economic Planning dept., Budget Dept., Lagos Bureau of Statics., Monitoring & Evaluation
Dept., Development Partnership dept., two (2) servicing departments: Finance & Admin.
Dept., Account dept., three offices: Honourable Commissioner’s office, Special Adviser’s
office & Permanent Secretary’s office and five support units: Press & Public Relation (PRO),
Information & Communication Technology (ICT), Internal Audit, Planning unit and
Procurement. Each department is headed by a Director.
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Figure 1: Office of the Head of Service/Public Service Office Organogram
Economic Planning
Dept.
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22001133 –– 22001155 MMEEDDIIUUMM--TTEERRMM SSEECCTTOORR SSTTRRAATTEEGGYY ((MMTTSSSS))
FFEEBBRRUUAARRYY 22001122 DDRRAAFFTT RREEPPOORRTT
Honourable Commissioner
Special Adviser on Economic Planning & Budget
HC Permanent
Secretary HC
Budget Dept
HC
Monitoring & Evaluation
Dept. HC Finance &
Administration
Lagos Bureau of Statistics
HC
Accounts Dept
HC
Development Partnership Dept
Planning Unit
HC
Public Relation Officer
HC
Information & Communication Technology HC
Internal Audit
HC
Procurement unit
HC
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2.3 Summary of the Global, Regional National State and Sector Level Policy Environments
The Lagos State Ministry of Economic Planning and Budget (MEPB) as charged in the
Assignment of Ministerial Responsibility Lagos State Government Gazette, No18, Vol.32 of
1st, July, 1999 was amended by MEPB Corporate Planning Core Group at the meeting held
on December 3, 2010 as follow: (Major basis for the amendment was that there have been
structural changes in governance over the past 12 years since the mandates under review
were set and in the process, some of the responsibilities originally charged to MEPB at its
creation, have officially been transferred to other newly created government agencies or
departments such as the Lagos Internal Revenue Service – LIRS.
These responsibilities include the following:
a) Coordination of Economic Planning Matters including:
Economic Planning;
Economic Intelligence;
Preparation and review of Development Plans;
Periodic reports on Development Plan Implementation;
Monitoring of Development Plans.
b) Advising the State from time to time on General Financial and Monetary matters both
locally and internationally.
c) Proposing to Government Revenue objectives through research.
d) Advising on Plans and programmes needed to achieve the designed objectives by all
Revenue Collecting Agencies.
e) Collaboration with relevant MDAs on issues relating to socio-economic development,
fiscal and other related matters.
f) Preparation of Annual Budget of the State Government and processing of Annual
Budget of Parastatals Organizations.
g) Advisory services on Local Government Budget.
h) Preparation of supplementary estimates.
i) Budgetary Controls.
j) Budgetary Instructions.
k) Reviewing and commenting on feasibility studies, plans and programmes of
Ministries, Offices and Bureaus.
l) Responsibilities for matters relating to the following Boards and Committee
State Consultancy Board;
Public Accounts Committee;
m) Research; monitoring and Evaluation of government programmes and projects.
n) Monitoring compliance with the requirement of:
Submission of Annual Accounts by Parastatal and Tertiary Institutions;
Audit of Public Accounts; and
Annual Budget.
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Periodic review of financial status of Parastatal and Tertiary Institutions
o) Collection, collation, analysis, production and dissemination of statistical data for
planning purposes.
p) Liaison with the National Bureau of Statistics and other statistical agencies.
q) Pre-payment inspection.
r) Technical assistance and coordination on development partnership matters.
s) Arranging and following up Governor’s coordinating meetings with Ministries, Office,
Bureaux and Parastatals on project implementation.
t) Liaison with Ministry of Finance on budgetary and financial matters.
u) Offering advice to Government on implementation of project and programmes.
v) Policy matters on Tenders procedure.
Relevant elements of the global, regional, national and sector level policy environments
include:
2.3.1 Global High level policies
MDGs Planning & Budgeting Sector Targets and Achievements
The MDGs Planning & Budgeting sector and related targets were set relative to the
standards prevailing in 1990. The goal is Develop a Global Partnership for Development.
The targets expected to be achieved by 2015 as it relates to the sector is:
Develop further an open rule based, predictable non discriminatory trading and financial
system which include the commitment to good governance, development and poverty
reduction.
Nigeria's Millennium Development Goals (MDGs) - Conditional Grants Scheme (CGS)
has been designed to address the MDGs at the local level by providing financial and
technical support to scale-up the MDGs related activities of state and local governments.
The State and Local governments are responsible for delivery of basic services to
communities. They are better placed to do this than the federal governments, as they
are more familiar with the local conditions, demands and constraints. The implementation of
the CGS projects in the State is being undertaking by the sector (Ministry of
Economic Planning & Budget)as directed by OSSAP-MDGs.
2.3.2 Regional High level policies
NEPAD - Establishing a New Relationship with Industrialised Countries and Multilateral
Organisations
The Economic and Corporate Governance Initiative State capacity-building is a critical
aspect of creating conditions for development. The State has a major role to play in
promoting economic growth and development, and in implementing poverty reduction
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programmes. However, the reality is that many governments lack the capacity to fulfil this
role. As a consequence, many countries lack the necessary policy and regulatory
frameworks for private sector-led growth. They also lack the capacity to implement
programmes, even when funding is available. Restoring and maintaining macroeconomic
stability, especially by developing appropriate standards and targets for fiscal and monetary
policies, and introducing appropriate institutional frameworks to achieve these standards;
With a goal to achieve and sustain an average gross domestic product (GDP) growth rate of
over 7 per cent per annum for the next 15 years. A critical dimension of Africans taking
responsibility for the continent’s destiny is the need to negotiate a new relationship with their
development partners. The manner in which development assistance is delivered in it
creates serious problems for developing countries.
The need to negotiate with, and account separately to, donors supporting the same sector or
programme is both cumbersome and inefficient. Also, the tying of development assistance
generates further inefficiencies. The appeal is for a new relationship that takes the country
programmes as a point of departure. The new relationship should set out mutually agreed
performance targets and standards for both donor and recipient.
2.3.3 National High level policies
VISION 20:2020 –
The Plan Thrust in line with the three key pillars of the Vision, and the theme, the Plan,
seeks to engender accelerated pro-poor growth, achieve an average GDP growth rate,, raise
the GDP per capita, generate jobs to absorb the teeming unemployed and create new
opportunities, improve the nation’s global competitiveness and raise the public confidence
on the nation’s governance and political system, among others, in order to attain the
Millennium Development Goals by 2015, and move the nation towards achieving its Vision
by 2020. Lagos State Government in tune with the Federal Government has created a
vision20:2020 that “by 2020 Lagos State will truly be the centre of excellence and Africa’s
Economic Hub” Lagos Metropolitan area will become one of the top 10 model-mega cities in
the world in terms of urban living indices.
2.3.4 State and Sector High level policies
a) Ten Points Agenda – Is a relevant document of MEPB especially as it relates to
Revenue Enhancement and Development of Data base through diversification of
revenue sources; widening tax net; effective revenue collection mechanism; and
database development
b) Other relevant policy documents being used by Ministry of Economic Planning &
Budget are:
Budget Manual
MTSS Guidelines/Sector plan
Lagos Economic Summit - Ehingbeti decisions
Approved Budget.
State Development Plan (SDP).
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2.4 Summary of Key Developments in the Sector
The major developments that have taken place in Budget & Planning sector are as follows:
a. Budget reform: The sector has taken steps to improve on timely Preparation /
Presentation, Implementation, Monitoring and Evaluation of Budgets. In the process,
it has undergone both structural and process reforms, including the setting up of the
Economic Intelligence Unit within the Economic Planning function; upgrading of the
old Central Office of Statistics to Lagos Bureau of Statistics, renaming and
redefinition of Technical Aid Department to Development Partnership Department as
well as the Central Projects Coordinating Department to Monitoring and Evaluation
Department.
b. Creation of Planning unit in MDAs. The Sector had undergone operational
restructuring by creating Planning Units in Ministries, Departments and Agencies as
well as defining the role of the Unit through executive order. Accordingly, the Sector
had developed the capacity of the Officers in the Planning Units to drive the delivery
of the MTSS document in the various sectors represented by the MDAs. The
development of the Medium–Term Sector Strategy (MTSS) document is the
highpoint of this effort.
c. Review and harmonization of all existing high-level policy documents and budgets of
Lagos State Government (LASG) into a consolidated 15-year State Development
Plan. The need for this is to have a document to distil from such documents as Ten
Point Agenda (TPA), Vision 20:2020 as well as MDGs and related goals. This is
achieved through strengthening capacity for developing policies and strategies
including monitoring and evaluation; Improving the management of public financial
resources; and Management of the public service. The State Development plan is
important to ensure that functional structures for 'managing' the quality, coordination,
implementation and delivery of outputs and feasibility of plans are operational.
d. Policy brief on Lagos Economic Summit (Ehingbeti 2010) developed and submitted
to MEPB. This involved the review of past summits which stated the resolutions and
recommendations made as well as those that were implemented and others that are
at various stages of conception and implementation.
e. The Programme-Based Budgeting (PBB) template was piloted with MEPB and 10
MDAs. The PBB provided a platform for MTSS to fit into the programme-based
budget as proposed by the sector. A workshop was organized for MDAs to expose
participants to the rudiments of preparing a Programme- Based Budget (PBB); this
will inform the Lagos State Government on what has been expended on each
programme.
f. Development of Medium Term Sector Strategy for selected sectors in the state and
conducting strategy session with Core team members as well as training of the state
planning teams (SPT) by utilizing the approved Lagos State MTSS guidelines to
guide the selected sectors through its development in order to achieve MTSS that
are consistent with the high level policy. Refresher course on MTSS and the review
of MTSS document for the first ten (10) pilot sectors (MDAs) in Lagos State.
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g. Completion of a user-friendly generic Budget manual. The Budget manual which was
developed by the sector provides a set of guidelines on public financial management,
including specifically the procedures relating to the annual budget process for the
Lagos State Government.
h. Support the development of State statistical master plan to reverse the decline in the
quantity and quality of official in the State and to promote evidence based policy
design, planning and monitoring the state development programmes and initiatives.
2.5 Statement of the Sector’s Mission, Vision and Core Values
MEPB MISSION STATEMENT
Ensuring continuous and dynamic socio-economic policies through prudent and equitable
resource management in Lagos State.
MEPB VISION STATEMENT
To be the primary Agency of Government that facilitates efficient and effective mobilization,
planning, allocation and utilization of resources for socio-economic transformation of Lagos
State.
CORE VALUES
Prudence
Professionalism
Integrity
Dynamism
Teamwork
Operational definition of core values of Ministry of Economic Planning & Budget
Value Definition Example of Behaviour
Strategy Implication
Prudence Carefulness and good sense of reasoning exhibited when making a financial and or resource allocation decision.
Carefulness in financial management. Taking caution in resource allocation.
The sector will reward industrious innovation and creativity and introduce sanctions
Professionalism Exhibiting expertise quality in the discharge of duties by staff.
Responsibilities that require special training
Promote membership of relevant professional bodies by staff to acquire and sharpen requisite skills
Integrity Steadfastness in adhering to ethical principles
Consistency in dealing with stakeholders without compromise.
Provision of regular enlightenment/awareness programme to staff.
Dynamism Continuous reform process.
Full of initiatives and exciting ideas.
Recognition of vigour in the conduct of staff
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Restructuring in the Ministry for optimal service delivery.
Teamwork Loyalty that exist among the members of staff to achieve organizational goals.
Cooperation, interdependence
Timely delivery of output Exhibition of synergy for improved productivity.
2.6 Summary of the Current Strategic Directions and Developmental Plans in the Sector
The strategic direction in which Ministry of Economic Planning & Budget is moving can be
described as follows:
a. Amazing transformation of the State. The sector has witnessed the deployment of the
budget as a major tool for planning and transformation. Emphasis was deliberately
shifted from recurrent to capital expenditure to support the Administration's policy
thrust of massive infrastructural development. Budgeting in the past four years had
been used to faithfully implement the Ten Point Agenda originally.
b. Good governance which is based on recognition of the interests of all stakeholders
and inclusion of their interests where possible. The strategy to achieved this are
through:
Open Budget Initiative which illustrates how governments can increase their access to information.
Gender budget analysis - comparing the impact of government spending on men and women, making sure that the government includes women in their budgeting process
Training communities in "budget literacy" - community organizations will train civil society about the internal workings of the budget and thus increase their ability to critique the governing
Community score cards this is an innovative way of gathering community input on the budget process bodies.
c. Delivery of dividend of democracy i.e., Freedom of Information Laws that allows the
government to share information publicly this is the use of the Citizen’s Guide
publication on Budget available to the public.
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2.8 The Sector’s Goals and Programmes for the MTSS Period
Table 3: Goals, programmes and outcome deliverables
S/N Goal Programme Outcome
Deliverable
Key Performance Indicators of the outcome
Current Outcome Value
in 2012
Outcome Target Values
2013 2014 2015
1 Maintenance of strong Economic Planning Mechanism.
Policy research analysis
Evidenced based Inputs for policy direction Production of Policy briefs and other Publications
Proportion of evidenced- based inputs for Planning
Currently about 40% of policy planning in Lagos State is factual, verifiable Statistical data
50% evidence based and verifiable Statistical data
70% evidence based and verifiable Statistical data
85% evidence based and verifiable Statistical data
Reformation of Planning Process
Documentation of Medium Term Planning Tools
Proportion of MDAs applying MTEF
Application of Strategic tools in 28 MDAs across the State Civil Service
100% Application of MTEF across the State Civil Service
Completion of application of MTSS across the State
Review of Medium Term documents across the State
Participatory Policy planning
Provides focus and direction for Government Agenda
Review of State Govt. High Level Policy documents
First draft of State Dev. Plan
Validation of the State Dev. Plan
First Review of the State Dev. Plan
Second Review of the State Dev. Plan
2 Promotion of Public-Private Participation
Review of Policy Brief on Lagos Economic Summit (Ehingbeti)
Effective Economic Policy direction
Proportion of investment from PPP per year
Conveyance of Stakeholder forum (Ehingbeti Summit)
Integration and Implementation of Summit Resolutions
Conveyance of 2014 Stakeholder forum (Economic Summit)
Integration and Implementation of Summit Resolutions
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S/N Goal Programme Outcome
Deliverable
Key Performance Indicators of the outcome
Current Outcome Value
in 2012
Outcome Target Values
3 Generation and utilization of reliable data for planning
Gathering prices and local Government Statistics
Data production i.e Price Statistics and Local Government Statistics
Proportion of policy /programme decisions that are based on statistical information
Monthly publication of data
30% increase access to Data Users
50% access to Data Users
70% access to Data Users
Carrying out Survey on Data Bank statistics
Production of Digest of statistics & statistical Hotline and data on Household Survey,(GDP Employment Survey.
Proportion of identified emerging issues that data generation responded to.
Annual Publication of data
20% increase access to Data Users
60% access to Data Users
80% access to Data Users
4 Ensure Effective & Efficient Budget Management
Formulation and Preparation of State Budget
Efficient resource utilization & management
Benchmarking/Annual budget performance in percentage across MDAs
75% of MDAs Compliance
80% of MDAs Compliance
85% of MDAs Compliance
90% of MDAs Compliance
Participatory / Stakeholders Involvement Process
Ensure annual budgetary process compliance
MDAs compliance with the given envelope
75% of MDAs Compliance
80% of MDAs Compliance
85% of MDAs Compliance
90% of MDAs Compliance
5 Develop a Policy Strategy in Monitoring & Evaluation
Projects Monitoring & Evaluation and Impact Assessment
Effective value delivery of government programmes on the populace
Timely Performance Management Report (PMR) level of sector programme performance
Production of Programme KPIs for all MDAs
Assessment of three (3) government Programmes from three (3) different Sectors
Assessment of additional three (3) government Programmes from three (3) different Sectors
Assessment of additional four (4) government Programmes from three(3) different Sectors
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S/N Goal Programme Outcome
Deliverable
Key Performance Indicators of the outcome
Current Outcome Value
in 2012
Outcome Target Values
6 Facilitation of Development Partnership
Sourcing and facilitation of Development partnership
To maximise developmental opportunities
Significant percentage contribution from ODA to annual budget.
50% increase on the number of development Partners engaged
50% increase on the number of development Partners engaged
80% increase on the number of development Partners engaged
100% increase on the number of development Partners engaged
Co-ordinating the activities of Development Partners
To optimise developmental opportunities
Number of programmes facilitated/Implemented within the year
Increase in number of Programmes facilitated
20% Increase in number of Programmes facilitated
30% Increase in number of Programmes facilitated
40% Increase in number of Programmes facilitated
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Section Three: Review of On-going/Existing Budget Commitments
3.1 Summary of the Review
A review of year 2010 and 2011 budget implementations were carried out to identify key
success stories, major upsets and learning points for improving subsequent budget
implementation while capturing and analyzing key historical and current budget data.
The review was also aimed at determining projects that should be continued and the ones to
be discontinued. The projects to be continued are those that will help to achieve the goals
and programmes of the sector. Otherwise, continuing with them will be a misplacement of
funds. The review was done jointly with the Sector Planning Team members.
3.2 Overview of 2010 Budget Implementation
A review of the 2010 and 2011 budget implementation were carried out with a view to
identifying the key success stories, major upsets, and challenges.
3.2.1 Summary of the Sector’s experience in implementing the 2010 budget
The following are common problems with budget execution at the State level:
a. circumvention of budget and expenditure controls
b. difficulty in reconciling bank statements with budget accounts and thus in obtaining
reliable and timely data on cash expenditures
c. the accumulation of payment arrears – deliveries from supplies which have not been
paid etc
d. the lack of fund and account consolidation
e. difficulty in managing and accounting for aid flows.
3.2.2 A description of the progress made in achieving the Sector’s goals
To improve the State level budget process, there needs to be an emphasis on establishing
some of the key basic fundamentals required of a budget system, such as:
a. seeking relatively modest improvements in the basic budget preparation process
b. re-establishing basic cash and expenditure control within ministerial functions
through improvement and streamlining of existing manual processes, developing
rules and procedures and associated capacity building
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c. seeking to enhance levels of political involvement and guidance in the budget
process, improving overall levels of transparency and participation in the LASEEDS
review and implementation and greater definition and clarity of affordable policies
d. technical and procedural improvements to internal and external audit processes
through technical design and capacity building
e. further ongoing sensitization at senior levels in line with improvements planned and
underway, in order to create demand for further sustained reform and to cement
achievements already made.
3.2.3 An outline of the performance of some of the larger development projects
The sector does not have any larger development project as it is classified under General
Public service. The sector only implements projects only as directed.
3.3 Overview of the 2011 Budget Implementation
A review of the Y2011 budget implementation was carried out with a view to identifying the
key success stories, major upsets and learning points for the future
3.3.1 Summary of the challenges, lessons learned and constraints faced in 2011 budget implementation
a. State-wide transfer of officials leading to loss of already trained officers.
b. This was however mitigated by creation of Planning units in various MDAs with the
prerogative of transfer reserve to MEPB.
c. Inadequate use of published data by MDAs and other Stakeholders.
d. Inadequate response to data request from MDAs and other Stakeholders.
e. Inadequate provision of proper documents / relevant information on programs /
projects by MDAs for monitoring and evaluation.
f. Non-availability of operation of some Development Partners for proper
documentation by the State.
3.3.2 Summary of key budget data (recurrent and capital) for 2010 and 2011
The historical, current and future budget data were captured for the Lands Budget
using the standard formats. The data captured for capital is set out in the table below:
Table 3.1
Item Approved Budget
(N) in 2011
Amount Released
(N) in 2011
Actual Expenditure
(N) in 2011
Personnel 164,151,654.66 177,856,301.00 177,856,301.00
Overhead 762,656,160.00 291,276,184.11 291,276,184.11
Capital 140,000,000.00 79,071,002.40 79,071,002.40
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Total 1,066,807,814.66 548,203,487.51 548,203,487.51
3.4 Summary of On-going/Existing Budget Commitments
A description of the projects that are performing well and those that are performing poorly
and an explanation of why they are performing poorly.
The Sector Planning Team (SPT) reviewed the on-going projects and scored using the
criteria 1, 2, 3 and 4 scoring criteria provided the MEPB. There is only one capital
expenditures in the sector; the project is highly scored because it is:-
a. One of the MDGs goals.
b. Involved in improvement of health related issue.
The scoring criterion is applied to the on-going project. However, the project is performing
well.
3.5 Scoring of the Existing Budget Commitments
The scoring exercise began with the development of an Excel based scoring
Spreadsheet. The spreadsheet is capable of calculating the overall average score
for each of the four criteria and at the same time rank the project. Unfortunately, only one
project was scored.
3.6 Existing Budget Commitments Scorecard
Table 3.2: Summary of the review of on-going/existing projects scorecard (ranked by average score)
Project Name Budgeted
Expenditure in 2011 (N)
Criterion 1
Criterion 2
Criterion 3
Criterion 4
Average (1 – 4)
Final Criterio
n 5
Counterpart Funding - Construction of 2 nos. Maternal & Childcare centres at Badagry & Epe
3,465,000,000
4 4 3 3 3.5 4
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Table 3.3: Summary of ongoing/existing projects’ expenditures and output measures
Programme
Number Project Name
Budgeted Expenditure (N) Output
Output KPI
Output Value in 2012
Output Target
2013 2014 2015 201
3 2014 2015
1.
Counterpart Funding - Construction of 2 nos. Maternal & Childcare centres at Badagry & Epe
3,638,250,000.00
3,820,162,500.00
4,011,170,625.00
Completed and functional MCC at Epe and Badagry.
Project will be 100% completed
3,465,000,000.00
Total N/A N/A N/A N/A N/A N/A
3.7 Summary of Cancelled/Shutdown Projects No project was shut down
Table 4: Summary of cancelled/shut down projects
Project Name Rationale for cancellation/shut down
No project No project was shut down
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Section Four: 2013-2015 Medium Term Sector Recurrent and Capital Expenditures
4.1 Statement of 2011 Indicative Ceiling
Table 5: Statement of 2011 Indicative Ceiling
BUDGET ESTIMATES
GENERAL OVERHEAD COST 1,036,800,000.00
Y2012 ECONOMIC RETREAT 150,000,000.00
PROVISION FOR SUBVENTION 893,364,720.00
RISK RETENTION FUND 100,000,000.00
COUNTERPART FUND 3,465,000,000.00
GRANT 3,468,000,000.00
SPECIAL EXPENDITURE 6,000,000,000.00
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4.2 Summary of Recurrent (personnel and overheads) Expenditures Included in the Indicative Ceiling
Table 6: 2013 – 2015 Staff strength, personnel and overhead cost
MDA
Projected Staff Strength
Projected Personnel Cost (N’000) Projected Overhead Cost (N’000)
2013 2014 2015 2013 2014 2015 2013 2014 2015
Min. of Economic Planning & Budget
259 272 286 286,618,801.55 300,949,741.62 315,997,228.70 1,025,521,347.60 1,175,287,758.31 1,234,052,146.22
4.3 Summary of On-going/Existing Projects Included in the Indicative Ceiling
Table 7: On-going/Existing projects expenditure
Goal: Programme No
Project name Budgeted expenditure Output Output KPI
Output target Final Ranking
2012 2013 2014 2012 2013 2014 2015
Goal 6: Facilitating Development Partnership
Special project / Counterpart Funding projects
3,465,000,000.00
Completed and functional MCC at Epe and Badagry.
Project will be 100% completed 3,465,000,000.00
4.4 Summary of New Projects Included in the Indicative Ceiling
No new project was being proposed because the ministry is a public service sector except it is otherwise directed to implement a project.
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Section Five: Conclusion
5.1 Summary of the Sector’s Aims over the Next Three Years
Medium Term Sector Strategy (MTSS) is part of reform process for improving the delivery
and conception of annual budget in the State. It is part of the overall plan of Medium Term
Expenditure Framework which was adopted by the State Government for its budgetary
process. The sector‘s aims over the next three years includes:
a. Revenue Stakeholders Meeting chaired by Governor for sustained Revenue Drive;
b. Transparency and Accountability;
c. Efficient Allocation of Resources across Sectors;
d. Tighter operating Expenditure Control;
5.2 How the Sector Plans to Achieve its Aims
The sector targeted at improving on these frameworks
a. Statutory Periodic Review of Performance;
b. More Effective Project Monitoring & Evaluation;
c. Sustaining Capital: Recurrent Expenditure Ratio of 58:42
d. Retaining Benchmark Performance at 90%
Table 8: Budgeted Project Expenditure by Goals and Programmes included in the indicative ceiling
MDA Goal: Programme No
Project Name
Existing/ongoing/new (E/O/N)
2011 Proposed Budgeted Expenditure
2011 Approved budgeted expenditure
Estimated Expenditure
Average Score
Final ranking
Source of funding
2013
2014
2015
No project was proposed and approved
5.3 Summary of Expenditures not Included in the Indicative Expenditure Ceiling:
No indicative expenditure ceiling was given. Projects were not fitted into the resource ceiling.
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5.4 Monitoring and Evaluating the Sector Strategy
5.4.1 Outcome and outcome deliverables for the programmes
S/N Programme Outcome Deliverable
Current Outcome Value in 2012
Outcome Target Values
2013 2014 2015
1 Economic Intelligence programme
Evidenced based Input for policy direction ,Production of Policy briefs and other Publications( Lagos Policy Review Publication)
Currently about 40% of policy planning in Lagos State is factual, verifiable Statistical data
50% evidence based and verifiable Statistical data
70% evidence based and verifiable Statistical data
85% evidence based and verifiable Statistical data
Reformation of Planning Process
Documentation of Medium Term Planning Tools
Application of Strategic tools in 28 MDAs across the State Civil Service
100% Application of MTEF across the State Civil Service
Completion of application of MTSS across the State
Review of Medium Term documents across the State
Facilitation of participatory Policy planning
Provides focus and direction for Government Agenda
First draft of State Dev. Plan
Validation of the State Dev. Plan
First Review of the State Dev. Plan
Second Review of the State Development plan
2 Lagos Economic Summit(Ehingbeti)
Effective Economic Policy direction
Convenance of Stakeholder forum(Ehingbeti Summit)
Integration and Implementation of Summit Resolutions
Convenance of 2014 Stakeholder forum(Ehingbeti Summit)
Integration and Implementation of Summit Resolutions
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3 Price and Local Government Statistics
Data production i.e Price Statistics and Local Government Statistics
Monthly publication of data
30% increase access to Data Users
50% access to Data Users 70% access to Data Users
Survey Research Statistics
Data production i.e Household Survey, Gross Domestic Product(GDP), Employment Survey
Annual Publication of data
20% increase access to Data Users
60% access to Data Users 80% access to Data Users
Motor Vehicle Statistics
Data production i.e MVA Statistics
Annual Publication of data
30% increase access to Data Users
40% access to Data Users 70% access to Data Users
Data Bank Statistics Data production i.e Digest of Statistics, Statistical Hotline
Annual Publication of data
30% increase access to Data Users
50% access to Data Users 70% access to Data Users
4 Formulation and Preparation of State Budget
Efficient resource utilization and management
75% of MDAs Compliance
80% of MDAs Compliance
85% of MDAs Compliance 90% of MDAs Compliance
Participatory/Stakeholders Involvement Process
Ensure annual budgetary process compliance
75% of MDAs Compliance
80% of MDAs Compliance
85% of MDAs Compliance 90% of MDAs Compliance
5 Output Monitoring &Evaluation
Value delivery 70% Prepayment Certification achieved
10% increase in Prepayment Certification Compliance
20% increase in Prepayment Certification Compliance
30% increase in Prepayment Certification Compliance
Outcome Monitoring &Evaluation
Value delivery Introduction of Performance Management Report(PMR) to nine(9) Sectors
Review of Performance Management Report(PMR) to all nine(9) Sectors
Preparation of current year PMR and its review in all nine(9) Sectors
Preparation of yearly PMR, its review and its use for the Y2015 MTSS adjustment in all nine(9) Sectors
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Impact Assessment Present effective of government programmes on the populace
Production of Programme KPIs for all MDAs
Assessment of three(3) government Programmes from three(3) different Sectors
Assessment of additional three(3) government Programmes from three(3) different Sectors
Assessment of additional four(4) government Programmes from three(3) different Sectors
6 Sourcing and facilitation of Development partnership
To maximise developmental opportunities
50% increase on the number of development Partners engaged
50% increase on the number of development Partners engaged
80% increase on the number of development Partners engaged
100% increase on the number of development Partners engaged
Co-ordinating the activities of Development Partners
To optimise developmental opportunities
Increase in number of Programmes facilitated
20% Increase in number of Programmes facilitated
30% Increase in number of Programmes facilitated
40% Increase in number of Programmes facilitated
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5.4.2 Performance Indicators/Measures for outputs and outcomes
S/N Programme Outcome Deliverable
1 Economic Intelligence programme
Evidenced based Input for policy direction, Production of Policy briefs and other Publications(Lagos Policy Review Publication)
Reformation of Planning Process
Documentation of Medium Term Planning Tools
Facilitation of participatory Policy planning
Provides focus and direction for Government Agenda
2 Lagos Economic Summit(Ehingbeti)
Effective Economic Policy direction
3 Price and Local Government Statistics
Data production i.e Price Statistics and Local Government Statistics
Survey Research Statistics Data production i.e Household Survey, Gross Domestic Product(GDP), Employment Survey
Motor Vehicle Statistics Data production i.e MVA Statistics
Data Bank Statistics Data production i.e Digest of Statistics, Statistical Hotline
4 Formulation and Preparation of State Budget
Efficient resource utilization and management
Participatory/Stakeholders Involvement Process
Ensure annual budgetary process compliance
5 Output Monitoring &Evaluation Value delivery
Outcome Monitoring &Evaluation
Value delivery
Impact Assessment Present effective of government programmes on the populace
6 Sourcing and facilitation of Development partnership
To maximize developmental opportunities
Co-coordinating the activities of Development Partners
To optimize developmental opportunities
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