Nigeria's Vice President , Prof. Yemi Osibajo has hinted that the Federal Government will soon migrate to a zero based budgeting format for the 2016 budget. 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 Mohammdu 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.
Osinbajo gave the hints on the 2016 budget during a courtesy call on him by the National Economic Summit Group (NESG) at the presidential villa.
The Vice President also noted that the introduction of the Treasury Savings Account, TSA, in the Ministries, Department and Agencies, MDAs was a policy initiative that would block perceived leakages within the government financial systems and make the budget a workable document
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.
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