- 10 Marks
Question
The Budget Department of a Ministry, Department, and Agency (MDA) has received the following inputs from the cost centres for the 2015 budget year:
| Expenditure Item | Amount (GH¢) |
|---|---|
| Construction Works – New Projects | 289,199.28 |
| Information and Documentation | 250,877.16 |
| Depreciation of Assets | 450,000.00 |
| Miscellaneous General Expenditure | 180,000.00 |
| Property Purchases | 366,874.28 |
| Staff Allowances | 50,315.60 |
| Research Activities | 243,596.45 |
| Charges and Fees | 17,752.62 |
| Repairs and Maintenance | 32,294.05 |
| Rehabilitation Expenses | 661,506.00 |
| Special Services | 24,327.00 |
| Travel and Transport | 270,789.35 |
| Printing and Publication | 151,924.25 |
| Materials and Consumables | 193,236.81 |
| General Cleaning | 450,000.71 |
| Utilities | 650,000.81 |
| Salaries for Established Post | 783,594.00 |
| Staff Overtime | 871,900.00 |
| Advertisement and Media | 170,000.74 |
| Out-of-Station Allowances | 131,114.85 |
| Insurance | 74,943.28 |
For the 2015 fiscal year, the Ministry has projected to generate an amount of GH¢3,036,230.57 from Internally Generated Funds. The law in 2015 allowed the MDA to retain all internally generated funds and use it to finance their budget expenditure.
Required:
i) Prepare the MDA’s annual budget using the current chart of accounts for the public sector and submit it to the Ministry of Finance as their proposed budget for the 2015 fiscal year. (8 marks)
ii) Calculate the amount of budgetary subvention support required from the Ministry of Finance for the 2015 fiscal year. (2 marks)
Answer
i) MDA’s Annual Budget for 2015 Fiscal Year:
| Expenditure Item | Amount (GH¢) |
|---|---|
| Compensation | |
| Salaries for Established Post | 783,594.00 |
| Staff Overtime | 871,900.00 |
| Staff Allowances | 50,315.60 |
| Out-of-Station Allowances | 131,114.85 |
| Total Compensation Budget | 1,836,924.45 |
| Goods and Services | |
| Utilities | 650,000.81 |
| Advertisement and Media | 170,000.74 |
| Insurance and Compensation | 74,943.28 |
| Information and Documentation | 250,877.16 |
| Depreciation of Assets | 450,000.00 |
| Miscellaneous General Expenditure | 180,000.00 |
| Research Activities | 243,596.45 |
| Charges and Fees | 17,752.62 |
| Special Services | 24,327.00 |
| Travel and Transport | 270,789.35 |
| Printing and Publication | 151,924.25 |
| Materials and Consumables | 193,236.81 |
| General Cleaning | 450,000.71 |
| Total Goods and Services Budget | 3,052,505.90 |
| Non-Financial Assets | |
| Repairs and Maintenance | 32,294.05 |
| Rehabilitation Expenses | 661,506.00 |
| Property Purchases | 366,874.28 |
| Construction Works – New Projects | 289,199.28 |
| Total Non-Financial Assets Budget | 1,349,873.61 |
| Grand Total Expenditure Budget | 6,239,303.96 |
(8 marks evenly spread using ticks)
ii) Calculation of Budgetary Subvention Support Required:
| Description | Amount (GH¢) |
|---|---|
| Total Expenditure Required | 6,239,303.96 |
| Less: Internally Generated Funds (IGF) | 3,036,230.57 |
| Total Subvention Required | 3,203,073.39 |
- Tags: Budget Subvention, MDA Budget, Public Sector Budgeting
- Level: Level 2
- Topic: Public sector fiscal planning and budgeting
- Series: MAY 2018
- Uploader: Theophilus