TOWARDS A TRANSFORMED OYO STATE Draft Blueprint of Medium –term Goals, Target andDeliverables for Ministry of Economic Planning and Budget Presented by: The Honourable Commissioner for Economic Planning and Budget Dr Nurudeen Olarinde
OUR MANDATEThe Purpose of Economic Planning and Budgeting Economic Planning and budgeting processes aim to improve Public Sector performance therefore our mandate is as follows: Draw up from time to time, State Economic priorities and programmes and map out implementation strategies. Enhance the efficiency of public sector spending and general State Economic Management. Advisory Services on Local Government Budget. Preparation of Supplementary Estimates. Budgetary Controls & Budgetary Instructions Collect basic data and advise Government on the Manpower Development Policy of the State. Carry out inspection visits of on-going projects in tile Development Plan with a view to identifying bottlenecks in plan implementation and advising Government on how the bottlenecks could be minimized. Generate and publish statistical data, including coordination of population related activities, which are necessary for Planning and Development of the State. Formulate and advise the State Government on policies that will promote the socio- economic development of the State.
• Focusing institutions on the delivery of results• Improving internal decision making• Fostering internal and external accountability• Improving the allocation of resources and ensuring their prioritization Prepare Development Plans designed to accelerate the development of the economy and facilitate the achievement of higher standard of living, for the people. Carry out periodic review of the projects and programmes in the Plan in order to ensure conformity with the laid down objectives. Prepare feasibility reports on projects so as to determine their social and economic viability. Co-ordinate all Technical Assistance Programmes and liaise with the appropriate Federal Government and Development Partners. Co-ordinate the activities and programmes of Development Partners. Coordinate and formulate State Policies and Programmes including State Programme on Food and Nutrition and others. Effective control and release of funds in line with approved budgetary provisions Monitoring and control of Economic Planning Matters including: a. State Planning Commission. b. Economic Planning Intelligence. c. Periodic reports on Development Plans implementations. d. Monitoring of Development Plans.
WHERE WE ARE NOW As far as economic planning is concerned we believe we are just kicking off from point Zero. Economic planning is almost non existent in the state and this is as a result of the following: Inadequate data required for realistic protections upon which development plans are based. Staffing constraints and limited skilled human resource capacity to collect, analyse and disseminate quality data on a timely and regular basis. Lack of a one-stop centre for Ministry generated statistics Limited facilitation for collection & monitoring of data from the various sources. Our Budgets are therefore: Not based on any development plans Based on falsified revenue profile of MDA’s that later result in poor performance of the budget
SUMMARY OF REVENUE AND EXPENDITURE RETURNS BETWEEN 2008- 2010 YEAR APPROVED EXPENDITURE % REVENUE PERFORMANCE 2008 92,647,349,539.0 64,947,378,901.0 70.10 0 3 2009 128,409,352,393. 59,726,307,821.5 46.51 00 5 2010 144,440,254,188. 60,661,963,692.0 41.99 00 6The table shows the approved revenue against the expenditure at theend of the year. Every year the state try to create a balanced Budgetfor political reasons. The revenue with which to complete the projectsare assumed to be there, the projects are political projects aimed atgetting the masses to know they are being taken care of, most of theprojects are therefore not realistic and revenue projections are nottenable.This therefore shows the true position of the budget based on theirapproved revenue and actual expenditure. What we intend to do is tomake our revenue projections realistic and achievable.
WHERE WE ARE GOING For us to fashion out where we are going effectively the objectives should be SMART i.e. Specific, Measurable, Achievable, Realistic, and Timed. Specific - Be precise about what you are going to achieve. Measurable - Quantify our objectives. Achievable - Are we attempting too much at the same time? Realistic - Do we have the resources to make the objective happen (men, money, machines, political will, materials, and minutes)? Timed - State when we will achieve the objective (in this case Mid-Term 2012-2015
Our Goals SHORT TERM (1YR) Generation of comprehensive statistics and utilization of reliable data for efficient planning and budgeting Effective expenditure control and project management 1st economic summit that would also provide us with an economic blueprint Creation of a database of up to date economic data and indices which will be used to enhance the accessibility of funding from development partners and Foreign Direct Investment Re-structure the budget & prirotise projects in order to ensure optimum budget performance Working in synergy with national planning commission to develop a proper planning framewok MEDIUM TERM(2012- 2015) To determine and advise on policies that will promote the economic and social development of the state Introduction of a multiple scenario approach to preparation of our budget Maintenance of strong economic planning mechanism through Participatory planning To promote private sector-led economy Diversification of State Revenue and development assistance sourcing LONG TERM(BEYOND 2015) The set of goals highlighted is expected to be put in motion immediately and be realized to its full potential by 2015. By which time we would have put in place an effective economic hub around which all economic growth and development activities of the state will revolve. To make this happen we need to look at our strengths and weaknesses aswell as the opportunities and threats around us for us to be able to draw up a very good roadmap.
STRENGTH WEAKNESS Being a full fledged ministry Lack of a one-stop centre for Ministry generated statistics. Currently, gives us increased capacity different departments produce, to operate manage and store their data independently and in different formats. The ministry has as its Limited facilitation for collection & commissioner an monitoring of data from the various experienced technocrat sources. who is quite familiar and at Lack of regular and timely updates of revenue data from the accountant home with the terrain generals office The Ministry has the Inadequacy of data required for realistic protections upon which capacity to develop an budgets are based effective management Staffing constraints and limited skilled system based on human resource capacity to collect, accountable decision- analyse and disseminate quality data on a timely and regular basis. making, priority and time- Lack of adequate training ad human frame setting, and capital development for staff in the implement the Sector ministry Strategic Plan for Statistics, Inadequate staff particularly the professional cadre budget, planning and monitoring
THREATS OPPORTUNITIES International commitments Erroneous interpretation of the especially with the World Bank, statistics produced which IMF, EU, ADB, UN and Bi- limits the credibility of the lateral Development Partners statistics produced by the which provide avenues for Ministry improving finance statistics Lengthy procedures for Government’s aim to transform recruitment and promotion are the state into a fully developed a threat to the development of state will increase the demand the statistical operations within for Government Finance the ministry. Statistics and provide scope for Technological changes pose a the statistics operations. challenge of updating Robust potentials to attract statistical packages and funding from development manpower training partners
HOW TO GET THERE After identifying our Strength, Weakness, opportunities and Threats the following are some of the things we need to put in place for us to truly achieve our set goals Economic Advisory Council Economic Team Economic Summit Improvement on Statistics and Economic Data Gathering & Management Attracting Foreign Direct Investment Introduction of SAP(Systems, Applications, and Products in Data Processing) for Public Sector Introduction of ICT into Governance Training and Recruitment of Professional Staff Construction of a permanent office complex for the ministry
Economic Advisory Council will be an independent body made up of accomplished professionals, economists and academics. It will be constituted to give economic advice to the state specifically. The council serves to highlight key economic issues facing the state and to advice the government from a neutral viewpoint. It advises the Government on a whole gamut of economic issues like inflation, microfinance, industrial output, etc and they are also expected to help the government map out strategies to attract foreign investments It is also recommended that the committee meets quarterly
Functions of the council: Analyzing any issue, economic or otherwise, referred to it by the government and advising thereon; Addressing issues of macroeconomic importance and presenting views thereon to the government. Submitting periodic reports on macroeconomic developments and issues with implications for economic policy; Attending to any other task as may be desired by the government from time to time. The primary role is to give a neutral viewpoint on economic policy matters that are referred to it by the government. Additionally it prepares a quarterly report of economic developments that need to be highlighted to the government. For this purpose it closely monitors state and national economic developments and trends and develops appropriate policy responses for the government.
Economic Team This will be an internal committee set up to ensure that the recommendations of the advisory committee is followed through aswell as make recommendations of their own and also ensure that the running of the state and ministries are geared towards attaining economic growth and development.
Composition of the Economicteam Chaired by the Executive Governor Ministry of Economic Planning an Budget serves as secretariat Office of the Accountant General Ministry of Finance Ministry of Agriculture Ministry of Trade, Investments and Cooperatives Due process Office Debt Management Office Ministry of Lands and housing
Economic Summit Economic Summit will provide a strategic process for the state to set and implement top economic development priorities on an ongoing basis. The Summit will have business leaders, government, academic communities & decision makers in attendance. It will create an opportunity to learn more about strategic opportunities and challenges facing businesses today and also an avenue to forge and economic blueprint for the state. Individual presenters and panels of knowledgeable experts in many areas of business innovation, law, entrepreneurship, economic development, global expansion, energy, real estate, political process, economics and more will be conducting specialized breakout sessions. Industry experts will also demonstrate to attendees at all management levels how to improve their professional performance and bottom line.
Improvement on Statistics andEconomic Data Gathering and ManagementPast methods of assembling and managingadministrative statistics rely on manualtechnologies which are slow and in the longrun expensive. The methods are also veryinefficient.The foregoing shortcomings of assemblingand managing administrative statisticsmake it desirable to introduce newtechnologies into the process.
Key strategies to improvegathering and management ofstatistical data: Infrastructure and Equipment. Human Resources Management and Development. Improved Data Production Methodology. Data Management, Dissemination and Access.
Attracting Foreign Direct Investment(FDI) and Foreign DevelopmentPartners Foreign direct investments have become the major economic driver of globalization. FDIs will not only provide foreign capital and funds, but also provides an exchange of skill sets, information and expertise, job opportunities and improved productivity levels. Foreign Development partners like the World Bank, United Nations, European Union, Africa Development Bank etc will also be invited to take part in developmental projects that will boost the states economy and place it at the pace setter state we should be.
Introduction of SAP(Systems, Applications, and Products in Data Processing) for Public SectorSAP for public sector is an information system solution designed tohelp all levels of government maximize public value, SAP for PublicSector solutions enable governments to optimize limited resourcesin public administration while delivering responsive front-officeservices. The solutions support business processes across a widerange of government functions, from accounting and procurement tocase management and social services.SAP solutions help governments leverage their finite time, money,and personnel resources to fulfill mandated program and servicerequirements on a timely basis. Where two or more agencies shareresponsibility for a common outcome, these solutions can integrateinformation, processes, and technology to support the activecollaboration that delivers financial returns, as well as social andpolitical results, to internal and external government stakeholders.
Their portfolio enables public organizations to connect silos of information and integrate processes across government departments, government levels, and borders with support for: Human capital management Government procurement Public sector accounting Social services and social security Government programs Tax and revenue management Public security Organization management and support
Benefits of SAP Achieve greater accountability and transparency – Public sector organizations must achieve financial transparency and be accountable to internal and external stakeholders, such as legislatures, regulatory bodies, and citizens. Leverage shared services – Public sector organizations must deal with heterogeneous systems and multiple specialized applications in a more efficient and cost-effective manner than in the past. Ensure compliance and security – To mitigate risk, governments must make sure that activities comply with a range of regulations, mandates, and laws relating to security, governance, and data protection. Achieving economies of scale and excellence in providing shared services Yielding quantifiable financial benefits plus qualitative social and political value. SAP co-developed "public ROI" methodology that helps governments demonstrate the value of IT investments to the public, going beyond traditional financial measures to show gains in transparency and integrity. Measuring economic impacts through data and process integration, and improving support for decision making through extensive reporting and data analysis
Introduction of ICT IntoGovernance The ministry intends to ensure that the computer literacy rate increases to almost a 100%. With the fast growing digital economy we need to be able to catch up with the trend. That being said apart from the introduction of SAP we will also ensure the following: All the offices in the ministry have networked computers and Laptops for staff where necessary We will build and host a functional website for the ministry We intend to establish a data centre which will be the hub for storage and access of all data and resources. We plan to integrate our systems in such a way that all financial activities and progress can be monitored by the commissioner and the governor in REALTIME and REMOTELY if need be
Training and Recruitment ofStaff We intend to do a thorough shake up in manpower by constant training and retraining of the staff we already have and employing new once where we see fit especially in the statistics and planning department. This is very critical as the strength of the information and data we gather determines their efficiency when used for : Policy formulation, Developmental Planning, Programme & Project Designs of government and international donor community , Policy Marketing at both the legislative and executive arms of Governments, Academics/Researchers ,Private Organisations, Consultants, International Organisations & The Media. We therefore cannot emphasis enough the need to recruit competent staff and TRAINING and RE-TRAINING of the staff we have in the ministry if we want optimal performance in Planning, preparation of budget, project monitoring and evaluation.
Construction Of a PermanentOffice Complex It is very crucial for us to have a permanent office complex of our own so has to ensure that staff work in a conducive and comfortable environment as well as to ensure the do not lack the necessary facilities to enable them function optimally
Other strategies include:•Improvement on monitoring procedures by employing more skilled andqualified manpower and equipping them to be able to effectivelydischarge their duties•To ensure the adoption of Medium Term Expenditure FrameworkMTEF in preparation and execution of the state budget•Toprepare ad implement the Community Economic Empowermentand Development Strategy CEEDS through the communities in all the33 Local government councils•Co-ordinate the attainment of MDG’s under the Conditional GrantScheme of the federal Government in the 33 Local Government areasof the State•All publications will be made up to date and ready for print by the end of theyear
•The relevant committee to oversee the 2012 budget should be setup immediatelywith the aim of having the budget ready in record time•The budget will be reviewed in such a way that the state spends more on capitalexpenditure and less on recurrent•Set a new target for budget implementation and review its performance on aquarterly basis•Provision of a conducive environment for the research analyst in theplanning department•The resource centre should be setup immediately using latest technology andmaking it as conducive and resourceful as possible