Vice President, Yemi Osinbajo, in Abuja on Tuesday has revealed the budding plans of the Federal government regarding the budget in 2016.
Prof. Yemi Osinbajo
Vice President, Yemi Osinbajo has disclosed in Abuja on Tuesday that the federal government was planning to use a zero-based budgeting format for its 2016 budget planning. He made this known during a courtesy call on him by the National Economic Summit Group (NESG) at the presidential villa.
He said the new system would be properly coordinated to ensure that it was policy-driven, especially the proposed social intervention policy of the president Muhammdu Buhari’s administration. Zero-based budgeting entails careful planning anchored on the needs and costs.
It is different from the current Envelope Budgeting or traditionally incremental budgeting whereby the planning is based on existing income and expenditure as the deciding factor in national financial planning levels, which often incurs waste and assumes previous costs as constant.
Disclosing that Buhari’s administration was articulating a four-year action plan that would guide it, Osinbajo stated that the “zero-based budgeting, (2016 budget) the Federal Government will also focus on a bottom-up approach to development.”
He further disclosed that the Federal Government is planning to set up an infrastructure fund in order to facilitate easy funding for critical areas of the economy.
The infrastructure fund, according to the Vice President, would be planned outside of the budget, to handle major segments of the economy such as road and power.
“Government is working out a document that would guide the administration within the four years of its life-span”, he said.
He said the new system would be properly coordinated to ensure that it was policy-driven, especially the proposed social intervention policy of the president Muhammdu Buhari’s administration. Zero-based budgeting entails careful planning anchored on the needs and costs.
It is different from the current Envelope Budgeting or traditionally incremental budgeting whereby the planning is based on existing income and expenditure as the deciding factor in national financial planning levels, which often incurs waste and assumes previous costs as constant.
Disclosing that Buhari’s administration was articulating a four-year action plan that would guide it, Osinbajo stated that the “zero-based budgeting, (2016 budget) the Federal Government will also focus on a bottom-up approach to development.”
He further disclosed that the Federal Government is planning to set up an infrastructure fund in order to facilitate easy funding for critical areas of the economy.
The infrastructure fund, according to the Vice President, would be planned outside of the budget, to handle major segments of the economy such as road and power.
“Government is working out a document that would guide the administration within the four years of its life-span”, he said.
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