..Warn against low budget performance
Kehinde Akintola, Abuja
A cross section of members of Nigeria’s House of Representatives on Tuesday expressed displeasure over the astronomical increase in the country’s debt profile, unrealistic revenue projection in the 2019 budget proposal presented to the joint session of the National Assembly.
The lawmakers expressed the concerns during the debate on the general principles of the N8.8267 trillion budget proposal laid by President Muhammadu Buhari.
Breakdown of the budget proposal shows that: the sums of N492,360,342,965 is for Statutory Transfers, N2,264,014,113,092 is for Debt Service, N4,038,557,664,767 is for Recurrent (Non-Debt) Expenditure while the sum of N2,031,704,458,092 is for contribution to the’ Development Fund for Capital Expenditure for the year ending on the 31 December, 2019.
Hon. Femi Gbajabiamila Moved for the Second Reading of the Appropriation Bill 2019 and it was Seconded by Hon. Edward Pwajok. Hon. Gbajabiamila stated that bearing in mind that the debate is on the general principles of the Bill, he would only touch on the highlights. The Oil benchmark is pegged at $60 per barrel and the foreign exchange at =N=305 to the Dollar. The budget is one of consolidation and on the gains of the Administration. It aims to restore Macro-Economics stability. The debt service ratio that was adjudged to be too high at the 2017 has been adjusted to ensure other engagements don’t suffer neglect. He asked for the speedy passage of the budget to ensure the continuity of governance and to avoid government shutdown. Hon. Yussuff Lasun stated that from the successive figures of the government over the years, it shows that the nation is sufferings from paucity of funds and hence Nigerians have the duty of thinking outside the box and search for alternative funds to enrich the citizenry. He also stressed that Nigeria as a nation must begin to emphasize on developmental structures.
Chika Adamu pointed out what he saw some errors in the Financial expenditure of MDAs in the Ministry of Education.
He also pointed out what he thought to be errors in the summary for the Ministries of Finance and Planning.
While speaking, Speaker Yakubu Dogara who acknowledged the various errors in the figures of the 2019 budget, urged members to limit their debate to the general principles of the budget and hoped the Ministry of Finance corrects the figures before the House concludes the debate on Thursday, January 24, 2019.
In his view, Chika Adamu, stated that the $60 per barrel that the budget was hinged on is doubtful as OPEC has foreseen not more than $55 per barrel in the near future.
He sees a situation where more foreign loans would be needed to sustain governance and with no sign of more productivity or Capital intensive projects in the budget, it would be impossible to Manage governance especially considering some huge funds allocated to some Offices like that of the Secretary to the Government of the Federation that are highly unnecessary.
Johnson Agbonayinma (APC-Edo) posited that budget represents the plans of the government of the day to develop some critical aspects of the economy like rail transport for ease of movement, agriculture for food security and explore for added funds, as well as security for stability and progress.
On his part, Sergius Ogun (PDP-Edo) expressed displeasure over the low level of implementation after the passage of the budget, stressing that the development makes the work painstakingly done by Parliament of little effect for the purposes the funds were meant for.
In his opinion, Aliyu Pategi (PDP-Kwara) called on the Executive to ensure the budgets are ready for transmission to Parliament before October of the preceding year, so that Parliamentary input can be concluded in time for speedy passage and implementation.
He lamented that continuous borrowing of the present administration without channeling the funds to developmental projects, contributed to the rising percentage of debt services.
He also called that the money proposed for the social intervention fund be used to pay owed contractors so that they can return to site and engage Nigerians in carrying out the jobs so that wealth can be spread.
He also lamented that the percentage of implementation of the 2018 budget is less than five percent which means it was a wasted financial year.
In hi intervention, Sunday Karimi (PDP-Kogi) argued that the revenue forecast in the 2019 budget proposal was unrealistic considering the economic realities.
The lawmaker, who queried the rising debt profile which he described as ‘alarming’, wondered how the government planned to accommodate and cushion the shortfall.
Karimi who argued that the recent budget performances in recent years was low, described the budget release as ‘hazardous’.
Also speaking, Simon Arabo stated the the level of implementation of the 2018 was inexcusably poor especially when aligned with the revenue that was generated.
He stated that the implementation was obviously deliberate to create artificial scarcity since the government bragged about increased revenue generation from the organs of government.
He stated that it is alarming that Nigerians do not even know how much oil is generated and sold daily, there is so much oil theft still going on.
He also frowned at the current administration’s penchant for excessive borrowing.
In his remarks, Toby Okechukwu (PDP-Enugu) stated that when considered that over N2 trillion proposed for debt servicing added to the high recurrent expenditure, it means what will be used for capital investment and development plans is dangerously low which means more problems are being created than solved.
In his intervention, Mohammed Monguno (APC-Borno) stated that as agriculture is time bound, there is need for the Executive and the Legislature to separate the budget for the agriculture and ensure its passage and fund release early before others so that the funds can be used before the rains arrive.
He pointed out that the budget of previous years have greatly frustrated agricultural endeavours.
He praised the agricultural green revolution and anchor borrowers scheme of the current administration as it has improved production and saved billions of naira that would have been spent on importation of food.
On his part, Mohammed Usman queried the benchmark and projected revenues which were forecasted, he stressed that all indications show they cannot be met and not good for planning.
He also queried the fact that the allocation to health sector has steadily declined over the last couple of years.
While applauding the allocation to Federal Ministry of Power, Works and Housing, he urged Federal Government to ensure the release of the funds.
Be the first to comment