An excerpt of the interview
Journalist: You’re welcome on CRTV Mr. Ewane Cliford. The budget of the State and particularly that of the Southwest Region for the 2024 financial year is known since weeks ago. When we talk of a budget, what is it all about?
Mr. Ewane: A budget, according to article 4(1) of law No 2018/012 of the 11th of July 2018 relating to the financial regime of the State and Other Public Entities, a budget is a document that describes or contains the resources and the expenses of the State as authorised by the finance law in the form of revenue and expenditure within the framework of a budgetary year. And this budgetary year, according 4(2), covers a civil year, which runs from the 1st of January to the 31st of December.
Journalist: In essence, when we are told that the Southwest region is to run with a budget of over 13 billion like that case of 2024, does it insinuate that the money is available somewhere and is going to be transferred to the Southwest region?
Mr. Ewane: No. It is not the case. Maybe it could sound in the ears of an ordinary citizen that the money exists somewhere. But in actual fact, the money doesn’t exist. The budget is a forecast of revenue and expenditure, and the money that is previewed in terms of revenue is not yet there. As a matter of fact, this is analysed within the framework of two very important budgetary principles, the principle of budgetary annuality and the principle of universality of the budget. For the principle of annuality, a budget runs for one year and it covers a civil year from 1st of January to 31st of December. Meaning that all the revenue, in principle, that was previewed in a budget for a year is supposed to have been recovered by the 31st of December, and all the expenditure that’s previewed in the same document is supposed to have been spent or done by the 31st of December. Meaning that 1st of January, in principle, the cash situation, let me put it like that, for what concerns the region, and by extension the State, should be empty. I mean, in principle. Now, for what has to do with the universality of the budget, it previews that all the revenue forecast has to cover the entire expenditure forecast for a given budget. Meaning that same, by the 31st of December, all the revenue that had been able to be mobilised for the entire year is supposed to have covered all the expenditure that was previewed.
So, going by these two principles, when the budgetary year ends, just like that of 2023 ended in the 31st of December, nothing is supposed to be talked about. Meaning that 1st of January, the entire process starts all over for 2024. But this is far from being a reality, looking at the way things are being done at the regional level. Because recently the committee in charge of the follow-up of public investment budget met and it was disclosed that there are still some projects on the 2023 budget which are yet to be executed and they are still calling on the stakeholders or the executors to ensure that these projects are carried out.
Jounalist: There is always the launch of a budget. One might wonder, what is the essence of launching a budget if it can easily be circulated through official gazettes and social media platforms? What does launching a budget signify in essence?
Mr. Ewane: The launching of the budget, which is usually headed by the Minister of Finance himself and for which most of the time he chooses a region and does this solemn occasion or activity there, and takes place simultaneously or concomitantly in all the other regions usually headed by the Governors, is an occasion par excellence for all the actors in the budget execution chain to meet and discuss on what the finance law previews for the year, and what is contained in the circular, in terms of explanation of the finance law, since the circular is an explanatory document.
The launching gives the opportunity to explain the finance law, the rules and procedures previewed by both the finance law and the circular, for the better understanding of all the actors. There is usually the explanation of the challenges and the stakes in the drawing up and execution of the budget of the State and Other Public Entities, and for there to be exchanges from every actor or participant on the difficulties that one actor can have which can better be handled by the other actor. It is also an opportunity for the Minister of Finance to give a go ahead or solemn opening of the dissemination and provision of execution of the budget, which might have already been executory from the 1st of January, but all the necessary tools might not have been there for the said budget to be executable. So it is an opportunity for all the actors to meet, for rules, regulations, procedures to be discussed and disseminated, and also for all the necessary tools to be put at the disposal of the various actors to realise the budget.
Journalist: Immediately the budget is launched, at every corridor of administrative offices, we hear of credit cards. What does that mean?
Mr. Ewane: A credit card is an expenditure authorisation document, printed on hard paper, mostly in blue and yellow colours, that describes the specificities of a particular project or task, inscribed in the budget of the State, as a budgetary line within a financial. It is also known as an expenditure appropriation or payment credit. It justifies the existence of a project or task in the budget, and the availability of funds for payment within the financial year after service rendered.
For example, if a road project is inscribed in the budget of the state, the specificities surrounding that construction of the road; who is the authorising officer of that particular item? Who commits the budget of that particular budget line? Who is the assigned accountant? What is the budgetary nomenclature or economic nature of that particular project? What is the title of the project? What is the specific project location or limits? Who is the assigned Public accountant competent to pay for the project executed? Etc, are all clarified in the expenditure authorisation or “credit card”. The determination, establishment, and printing of an expenditure authorisation is the responsibilities of the Ministries of Economy, Planning and Regional Development (MINEPAT), through its Department of Programming of Public Investments, and that of Finance (MINFI), through its Department of the Budget.
Journalist: Does it mean that the various stakeholders do not know the procedures? Because you earlier indicated that during the launch, these procedures are highlighted and clarified.
Mr. Ewane: The importance of highlighting or recalling the procedures is to ensure a smooth execution of the budget and to see that all the actors that are concerned in the realisation or execution of a particular project clearly understand their specific roles, in order to avoid over laps, ambiguities, and consequently any delays in the process.
In every project there are actors, be it in a specific manner or in the general framework, and the implication of each and every actor in a particular project or a particular procedure or process will determine the outcome of that particular project as an objective to be attained. The said procedures, for what concerns public contracts, actually start with the programming of the project, for an eventual award, after the voting of the budget. This programming is done by the Minister in charge of Public Contracts, in collaboration with all the budget owners or the vote holders of the budget. It is finalised during annual programming conferences that have to take place on or before December 31st of the year N-1. It is the same deadline for the validation of programming plans that become enforceable on January 1st of the concerned year N.
The second important phase in the procedure is the beginning of the award procedure proper by the authorising officer or project owner; which starts with the preparation of tender files, after obtaining the expenditure authorisations. This is materialised with the publication of open national or international tenders as the case maybe, that call for bids from interested and qualified service providers, following pre-determined conditions by the project owner or contractual authority. The strict administrative deadline set for the award, signing, and notification of all non-multi-year (annual) public contracts is the 30th April of the year.
The contract is awarded by the contracting authority or project owner upon the proposal of, and after due procedure in either the Internal, Divisional, Regional, or National Tenders’ Board. After award, execution begins in the field by the Contractor, under the technical control of the contract engineer (representing the technical or sectorial State department, the administrative supervision by the contract manager (representing the contracting authority or project owner, and also periodic controls by officials in charge of the Ministry of Public Contracts (MINMAP).
It is this same team, amongst other officials, and as it is usually specified in the contract, that is responsible for the evaluation of the work done after execution, and proceed to its reception or acceptance.
Mr. Ewane Cliford Ngabe is a Public Finance Expert and Treasury Inspector (graduate from ENAM), and currently the Regional Treasurer of the South West Regional Assembly. He holds a BSc. in Economics, B.Ed in Educational Psychology, LL.B in Public Law, MSc. in Economics, Diploma in Public Finance (National Economy and Public Management), and is a Ph.D fellow in the Department of Political Science (Political Economy) in the University of Buea. He has been lecturing Public Finance and Public Accounting in ENAP Buea, and NASLA Buea for some years now.
