Lagos residents and the budgetary process

Universally, the common accounting tool that governments, companies, organisations, and other institutions use for planning and controlling what they must do to satisfy the people and customers and succeed in their respective endeavors is budgeting.

Budgets provide a measure of the financial results a company expects from its planned activities.

By planning for the future, government officials, chief executives, managers, administrators and others in leadership positions learn to anticipate potential problems and how to avoid them. Instead of subsequently facing problems, they can focus their energies on exploiting opportunities.

The essence of budget preparation is to give a sense of direction, financial stability, efficient resource allocation, informed decision-making and promote accountability and transparency in managing a state’s finances.

Failure to prepare a budget at the state level can have significant repercussions. An unstructured budget exposes the government to overspending which can lead to financial instability and challenges in meeting fiscal obligations. This absence of a financial plan challenges the ability to make informed decisions as state officials would lack a clear understanding of resource allocation and available funds.

The lack of a budget also results in a deficiency in financial direction and control, making it difficult to effectively manage expenditures or respond to unforeseen financial challenges.

Over time, this can escalate into financial distress, necessitating cuts to essential services, increasing the state’s debt burden, and potentially leading to a broader economic crisis that impacts both the state and its citizens.

The government has over time strategically mastered the art of budgeting to progressively transform the city. In the last five years, the government has changed the paradigm, not only in budgeting but in its implementation. The state has not only effectively monitored budget implementation, but has consistently delivered a budget performance of over 70%.

It has been the government’s policy and practice to embark on periodic budget reviews, repeated monitoring, critical examination and diligent application of the entire budgetary process. This has largely impacted positively on budget performance in the state.

The idea of periodic budget assessment speaks volumes about the pro-activeness of the government as it affords it a scientific basis for measuring its performance consistently while putting pressure on government departments and agencies to meet budgetary targets.

An integral aspect of the state’s budgetary process is the Budget Consultative Forum (BCF) which is part of the Babajide Sanwo-Olu administration’s inclusive governance philosophy. To give the state budget an inclusive outlook, the input of relevant stakeholders across the State is always sought in the budget process.

This initiative is usually done through the BCF, which is held across the state with the presence of community leaders, traditional institutions, religious organisations, civil society, and the private sector.

Here, the importance of stakeholder engagement is for crafting a budget that meets the needs of the citizens as well as ensuring transparency and inclusivity in the budget preparation process.

The purpose of the forum is tilted towards informing the stakeholders with comprehensive updates about budget performance from the previous year and soliciting their feedback for the forward movement of their division.

This strategy, over the years, has fostered meaningful dialogue and active collaboration between the government and the citizens. It not only enhances the budget’s relevance and effectiveness but also promotes a sense of ownership among community members. This, in return, leads to quality governance and improved public services strictly tailored to the needs of the people. This is a significant step towards an even more participatory method of governance aimed at achieving a ‘Greater Lagos’.

Once the budget has been meticulously prepared and approved, its success centers on effective implementation. The government adopts a multi-faceted approach to ensure that allocated funds are effectively utilised. Adhering to timelines, establishing performance metrics, and allocating responsibilities among various other MDAs are essential aspects of the process.

To facilitate the smooth execution of the budget, various monitoring committees are charged with the responsibility of tracking project progress and expenditure against the budgetary allocations.

These committees typically consist of members from the Ministry of Economic Planning and Budget, Project Implementation Units and critical external stakeholders. Their involvement is vital to ensuring that projects remain within their allocated budgets, thereby optimising resource operation.

Recognising the importance of transparency and accountability, the state leverages technology by deploying e-governance platforms that provide real-time data on budget execution. This innovative approach allows the citizens to track the progress of public projects in their communities, fostering a culture of civic engagement and public oversight.

Through online portals, residents can access information regarding the status of various infrastructure projects, enhancing their understanding and involvement in the governance process.

Monitoring budget performance is essential for assessing the efficacy of government spending.

The government employs a combination of quantitative and qualitative measures to evaluate the alignment of budget implementation with the state’s strategic goals.

Regular assessments of key performance indicators, such as the rate of completion of capital projects and the delivery of public services in healthcare and education, provide insights into how effectively the budget is serving its intended purposes.

Periodic reviews are instituted as part of the monitoring process, enabling timely adjustments to be made when necessary. These reviews assess whether projects are on track regarding timelines and financial spending, allowing the government to reallocate funds if certain initiatives are falling behind schedule.

The authenticity of this monitoring process is the active engagement with stakeholders, which includes regular town hall meetings and community consultations to solicit feedback on the implementation of the budget and its impact on residents’ daily lives.

This feedback loop strengthens the relationship between the government and its citizens, fostering trust and enhancing the responsiveness of public services.

Furthermore, the Lagos state government encourages the involvement of civil society organisations and the media, inviting them to participate in monitoring exercises.

This collaborative approach promotes transparency and accountability in the use of public funds, empowering citizens to take an active role in governance while serving as a deterrent against corruption and mismanagement.

There is no doubt that challenges may occur during the process from preparation to monitoring.

However, to address this, the government is committed to investing in capacity building for its employees, particularly in areas related to project management and financial accountability. It also prioritizes enhanced systems for tracking and reporting budget performance, reducing the chances of error and enhancing the accuracy of financial data.

By and large, the government’s approach to budget preparation, implementation, and monitoring reflects a commitment to transparency, accountability and active citizenry engagement.

The decision to engage the public in the budgeting process is no doubt, the hallmark of true democracy.

This approach helps the government meet the needs of its citizens, use resources wisely, and support long-term growth. It encourages citizen participation which is essentially the gateway for the rising Lagos of our collective dream.

From all indications, with the availability of the required financial resources, the government would accomplish its ‘Greate Lagos’ objective. Over the years, the government demonstrated enough capacity to implement projects.

To ensure the total success of subsequent budgets in the state, the people need to be more involved in its implementation. The projects in their localities are theirs and are principally meant for them. So, they should monitor them to ensure that the money being spent is well spent.

Otuyemi is of the Ministry of Information & Strategy, Alausa, Ikeja.