Improving Budget Accuracy and Eliminating Padding
The Budget Office of the Federation has announced plans to introduce a more efficient budgetary system for Ministries, Departments, and Agencies (MDAs). This innovation will be powered by the Government Integrated Financial Management Information System (GIFMIS) Budget Preparation Sub-System. The purpose of this system is to streamline the budget process, making it more accurate and transparent across various government sectors.
During the training session for the 2025 budget preparation, the Director General of the Budget Office, Mister Tanimu Yakubu, stressed the importance of the new GIFMIS system. One of its primary goals is to eliminate budget padding, a recurring issue where MDAs inflate their financial requirements. By tackling this challenge, the government aims to maintain fiscal discipline and foster greater transparency in how public funds are allocated.
Mister Yakubu emphasized that the federal government is committed to delivering a budget that reflects national priorities while addressing the needs of its citizens. With the implementation of the GIFMIS system, public funds will be allocated more effectively, ensuring that essential projects, which contribute to the nation’s development, receive the necessary financial support.
Beyond improving budget accuracy, the GIFMIS Budget Preparation Sub-System offers real-time monitoring of the financial performance of MDAs. This new capability will enhance accountability and ensure that decision-makers have access to accurate financial data during the budget execution phase. This real-time oversight will result in better management of resources, ultimately benefiting the nation.
As Nigeria prepares its 2025 budget, the federal government remains determined to refine its budgetary process. The introduction of the GIFMIS system is a clear indication of the government’s dedication to transparency, accountability, and ensuring that public resources are directed toward projects that positively impact the country. By embracing this new system, Nigeria is taking significant steps towards improving the efficiency of its financial management systems.
The introduction of the GIFMIS Budget Preparation Sub-System is expected to mark a new era of fiscal discipline and integrity in Nigeria’s budgetary system, ensuring that every naira is spent on the priorities that matter most to its citizens.
