Era of incremental budgeting model is bye -gone — Ogun govt.


The Ogun State government on Wednesday stated that the era of incremental budget model had became bye-gone in the state. 

Commissioner for Budget and Planning, Mr. Olaoluwa Olabimtan  stated this at a stakeholders trainig organised for Directors of Planning, Research and Planning of respective Ministries Departments and Agencies (MDAs) held in Abeokuta. 

Olabimtan described the era as wasteful and unproductive, saying that the state government would stick to its modified zero-based budgeting model which would be impact and output oriented in line with International best practices.

He challenged MDAs to ensure due diligence in the preparation of their 2021-2023 Medium Term  Sectoral Strategy as a crucial factor that will drive the performance of  each Sector which will inturn rub off on the Overall Budget Performance for the State.

The commissioner affirmed that the ministry had the mandate of the Governor of the State, Prince Dapo Abiodun to ensure that proposed programmes and projects could be measured with meaningful outputs and impacts on the people and the state as a whole.

He said “the era of doing incremental budgeting is over. Where you get an amount of millions or billions for your sector or Ministry and what the money is budgeted for does not clearly have a positive bearing and impact on the people and the following year you just copy the same budget for the successive year just factoring inflation rate and then you think you get that money again when you have not justified the allocation in the previous year, that’s not going to happen”.

The budget commissioner advised  the stakeholders in the MDAs to simply develop a road map that combines ambition and realism with clearly plotted priorities, deliverables and costs.

He noted that each Sector must have a plan that described the sectoral priorities and explain how these priorities were chosen, set out the costs and resources required adding that it must also be explained how proposed projects and programmes will deliver outputs and outcomes that will contribute to achieving policy goals.

Olaolu who submitted that budget performance can only be predicated on output and results-oriented sectoral Strategy informed that monitoring and evaluation must also be must come to mind while preparing Medium Term Sectoral Strategy and must be carried along from the scratch.

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