Experts call for change in budgetary pricess, discipline
Budget
By Olawunmi Ashafa
Lagos, May 16, 2018 (NAN) Some financial experts have called for change in the methods adopted in the preparation of the budget as well as discipline in its passage.
They said this in separate interviews with the News Agency of Nigeria (NAN), on Wednesday in Lagos, while reacting to the 2018 budget passed by the Senate.
Mrs Morenike Babington-Ashaye, the Chairman, Accounting Education Research Services (ACCERS), believes there has to be a positive change in the nation’s budgetary method in order to achieve a timely passage of the budget.
She said a change in the budgetiary method would allow more discipline that could help to reflate the economy earlier than expected.
The former tax manager at Cooper & Lybrand, now part of PricewaterhouseCoopers, said Ministries, Department and Agencies (MDAs) presenting and defending their budget at the National Assembly had been one of the reasons for delayed passage of the budget.
Babington-Ashaye suggested that each MDA could present their budgets directly to the ministers who would defend them on their behalf at the National Assembly.
She suggested a budgetary committee with members drawn from MDAs, the Senate and House of Representative as well the executive to go through such budgets.
According to her, the committee should be part of the defence of the budget at the National Assembly, thereby reducing the time spent by MDAs defending their budgets.
The accountant said the annual budget ought not to be delayed because of the 2018-2020 Medium Term Expenditure Framework and Fiscal Strategy Paper, a-three-year budget plan always submitted to National Assembly ahead of the yearly budget.
Dr Samuel Nzekwe, former President, Association of National Accountants of Nigeria (ANAN), said revenue from the increase in the benchmark price of oil in the 2018 budget would definitely have positive impact on the nation’s debt service.
He explained that the revenue increase would help the country to reduce its level of borrowing to the Gross Domestic Product (GDP).
On the increase in the 2018 budget by N508 billion from N8.612 trillion to N9.12 trillion, Nzekwe, said it was not necessary because, “we have already gone far into the fiscal.”
The financial expert also said the increase might not make much difference, but could rather cause a rush in the implementation of the 2018 budget thereby compressing economic activities.
“The budget has waited too long, there is no time because we are almost in the middle of the year.
“The increase in the budget may only suffocate the economy by making it digest what it can’t take for that short period,” he said.
Also, Mr Muda Yusuf, the Director-General of the Lagos Chamber of Commerce and Industry (LCCI), said the passing of the budget by the Senate would affect its implementation, especially in the area of capital projects.
Yusuf said it would affect the delivery of infrastructure and also planning in both the public and private sectors.
The LCCI boss said passing the budget seven months after presentation to the National Assembly would affect the capacity and speed with which infrastructure would be delivered.
He, however, said the situation was not that bad because the constitution allows the executive to spend into the present budget without approval.
Yusuf added that it had to be as long as they were not spending more than they spent in the corresponding period in the last fiscal year.
He also called for discipline in the budgetary process, adding that the executive and the legislators had a role to play in achieving timely budget passage.
NAN recalls that the National Assembly on Wednesday passed the 2018 Appropriation Bill of N9.12 trillion.
The budget was increased by the legislature by N508 billion, from N8.61 trillion proposed by President Muhammadu Buhari in the Appropriation Bill presented to the assembly in November, 2017.
The budget expenditure was premised on oil price benchmark of 51 dollars per barrel as against the initial 45 dollar benchmarked at crude oil production of 2.3 million barrels per day and exchange rate of N305 to one dollar.
Also, aggregate expenditure stood at N9.12 trillion, with N530 billion earmarked for statutory transfers and N2 trillion for debt servicing.
While N3.5 trillion was earmarked for recurrent expenditure, N2.8 trillion voted for capital expenditure, N1.95 trillion for fiscal deposit, and deficit to GDP was put at -1.73 per cent. (NAN)
AWA/SA
Edited by Salif Atojoko
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