The Ministry of Finance has begun laying the groundwork for the 2025-26 federal budget, emphasizing measures to enhance efficiency and eliminate redundant expenditures within the federal government.
Aiming for Financial Prudence: Abolition of Vacant and Redundant Posts
According to official documents, all positions that have remained vacant or idle for more than three years are to be reported and abolished in accordance with the Financial Management & Powers of Principal Accounting Officers (PAOS) Regulations, 2021.
Key highlights of this directive include:
- Elimination of Redundant Positions: Ministries and departments must identify and report positions that have been unoccupied for extended periods.
- Compliance with PAOS Regulations: Strict adherence to the 2021 financial management regulations is mandatory.
- Focus on Efficiency: The abolition of unnecessary posts will ensure optimized use of public funds.
The Finance Division has also outlined a stringent process for submitting budgetary documents. No Budget Orders (BO) or New Item Statements (NIS) claiming Employee-Related Expenses (ERE) will be accepted without detailed justifications for the positions involved. Ministries and departments are required to:
- Ensure Consistency: The total number of posts reflected in Form-X must align with those indicated in BO/NIS.
- Obtain Endorsements: Form-X submissions must be endorsed by the Expenditure Wing of the Finance Division.
- Provide Supporting Documents: Sanction letters, duly approved by the appropriate authorities, must accompany all submissions.
This structured approach underscores the Ministry’s commitment to maintaining transparency and accountability in financial reporting.
Restrictions on the Creation of New Posts
To curb unnecessary expansion of the federal workforce, the Ministry of Finance has imposed strict restrictions on the creation of new positions. The directive stipulates that:
- Approval Requirement: No new post shall be established without prior approval from the Finance Division.
- Comprehensive Reporting: Ministries and departments must provide a detailed overview of approved, filled, and vacant positions.
By enforcing these measures, the government aims to prevent unwarranted growth in administrative costs while prioritizing essential functions.
Data Submission Deadlines for Ministries and Departments
The Ministry has set clear deadlines for the submission of data regarding the status of approved posts. All relevant ministries, divisions, and departments are instructed to:
- Provide Comprehensive Details: Submit data on approved, filled, and vacant posts as of January 31, 2025.
- Meet Submission Deadlines: Ensure that the required information is submitted by February 6, 2025.
Streamlining Expenditures: A Key Priority for 2025-26
The Ministry of Finance’s preparations for the 2025-26 federal budget are rooted in the overarching goal of fostering economic stability and sustainability. By targeting unnecessary expenditures, the government seeks to:
- Enhance Operational Efficiency: Rationalizing the federal workforce will lead to improved productivity.
- Optimize Resource Allocation: Resources can be redirected to critical development and social welfare projects.
- Ensure Fiscal Discipline: Prudent financial management will reduce the fiscal deficit and bolster economic growth.
The Finance Division’s directives have significant implications for all stakeholders involved in the budget process:
- For Ministries and Departments: There is an increased responsibility to ensure accurate and timely reporting of workforce data.
- For Policy Makers: The emphasis on efficiency and fiscal discipline will guide resource allocation decisions.
- For Citizens: Streamlined expenditures will potentially lead to better public services and infrastructure development.
