The Budget Cycle is initiated by the Revenue Call. It is sent out by the Ministry of Finance and requires all Accounting Officers who are Revenue Collectors to submit a detailed revenue estimate. It is usually sent out by the 2nd week in June to be submitted back to the Ministry of Finance in duplicate by the end of June.
The revenue estimates is based on collection trends to May of the current year and should reflect a realistic assessment of due and collectible receipts including any new proposed revenue measures.
Once the information is received by the Ministry of Finance, it is then compiled in the form of a Detailed Revenue Estimate which becomes part of the Budget Call.
The Budget Call is sent out by the Ministry of Finance to all Accounting Officers, the Governor, the Minister of Finance and other Ministers. Its primary purpose is to invite submissions/proposals for the next financial year and provide information and guidance as to when and how Departments and Ministries are to submit their estimates.
Accounting Officers are asked to submit duplicate copies of their Budget both Recurrent and Capital Expenditure. These draft Recurrent Estimates of Expenditure are also known as the Base Budget.
The Base Budget consists of “Other Charges”, which are charges for continuing services and Personal Emoluments. Provision is made for a deflator on the Other Charges which is limited to but not greater than the amount of the deflator. This deflator is based on a factor of the Consumer Price Index which is given by the Development Planning Unit. The deflator can be shuffled around the Other Charges; however, the overall base budget must not exceed the total Other Charges plus the amount of the deflator.
Ministries and Departments are also asked to submit separate Budgets for each New Initiative/Programme requested, in the same format as the Base Budget. These submissions should be channeled through their Permanent Secretaries and their Ministers for approval.
Ministries/Departments Prioritize New Initiatives/Programmes
The Ministries and their respective departments meet to prioritize the New Initiatives/Programmes. Duplicate copies of each New Initiative are sent to the Ministry of Finance and should be accompanied by the Ministry’s prioritized listing.
Ministry of Finance Checks Submissions
The Ministry of Finance checks the submissions thoroughly to see if all relevant information is attached. If there is a problem the Desk Officer assigned to that particular Ministry/Department offers guidance and assistance where necessary to produce a proper submission.