8.4 C
New York
Friday, March 29, 2024

The Budget Impasse: The Real Issues – By James Ume

Published:

LATEST NEWS

- Advertisement -
Okonjo Iweala
Okonjo Iweala

The coordinating Minister of the Economy and Minister of Finance, Dr. Ngozi Okonjo – Iweala predictably incurred the wrath of the National Assembly when she stated recently that government would not be able to pay salaries by September if the furore generated by the proposal for the amendment of 2013 Appropriation Act is not resolved. The recriminations, verbal salvos and the high voltage tension that has trailed the Minister’s comments underscores the frosty relationship between the Executive and the National Assembly, a situation which threatens to imperil the 2013 Appropriation Act and hold in abeyance, the developmental objectives of the present administration.

Given the grave implications of this lingering crisis, it is in the overidding national interest for all the contending forces to move quickly to diffuse tensions thus generated by taking concrete steps to resolve the issues surrounding the identified grey areas. No nation can afford to waste a full calendar year of its life quarrelling over issues that can be best settled with maturity, commonsense and understanding in the overidding national interest. Paradoxically, in the anals of the nation’s budget years, the 2013 fiscal year set the pace in budget Appropriation. In December 20, 2012, the National Assembly passed N4.987 trillion appropriation bill presented by the President in September of the previous year. President Jonathan had proposed N4.92 trillion but the National Assembly jacked up the figure to N4.987 trillion. This feat gave room for cautious optimism among Nigerians who hailed the early passage as a departure from an inglorious past of intractable late budget presentations. Giving the festering crisis that has engulfed the budget, pessimism now rules the land.

Agreed that disagreements and robust engagements are some of the hallmarks of democratic practice, the time has come for all the warring parties to sheath their swords and move quickly to redeem the budget. The Minister of Finance and Coordinating Minister of the Economy, Dr. Mrs. Ngozi Okonjo – Iweala spoke from an informed position when she issued the dire warning regarding the ability of government to function and fulfill its obligations. A lot these of political, maneuvers and ego trips have so far impinged on a balanced, fair and expeditious consideration of the 2013 budget amendment, proposal submitted by the president to the National Assembly on March 14. In the amendment bill, the President replaced the earlier N4,987,220,425,601 contained in 2013 Appropriation Act with N4,987,382,196,690 in the (Amendment) Bill 2013. According to the details, the President also sought to appropriate a total sum of N2.4 trillion as recurrent expenditure as against N2.3 trillion on December 20, 2012. Also, Jonathan sought approval for N1, 588 trillion as Capital expenditure as against the N1.6 trillion approved by the National Assembly last year. Whereas N388 billion was earmarked for statutory transfers, N591.7 billion was meant for debt servicing. The president also raised concerns over certain clauses inserted into the budget by the National Assembly which it believes amounted to the appropriation of executive powers by the parliament and therefore sought to correct them. These include the zero appropriation for Securities and Exchange Commission (SEC) as well as a clause in the Act that prohibits the Commission from spending any revenue it generates.

READ ALSO  Time to end government by palliatives - By Hassan Gimba

Beyond all these observed discrepancies, the most worrying and unacceptable is the perchance of the National Assembly to tamper with projects designed for execution in the 2013 budget by the presidency. The National Assembly had diverted original appropriations to places of their own interest, an act which according to the presidency made the budget non implementable. Some of the Capital projects whose allocations were reduced to a point of distortion include the Lokoja-Abuja highway. The Appropriation for this road was reduced by N4billion and unless the money is restored, this important road which is the gateway between the North, South east and mid west will remain a deathtrap for commuters for years to come. Also, appropriation for Kano-Maiduguri was reduced by N3.5 billion while the dualisation of Ibadan – Ilorin road was reduced by N5.5 billion. Appropriation for the rehabilitation of burnt Marine bridge and Iddo bridge was reduced by N1 billion. Also, the special intervention fund for emergency roads and bridges washouts nationwide was reduced by N6.28billion while the dualisation of Obajana junction to Benin was reduced by N4billion.

The National Assembly reduced appropriated funds for the Millennium Development Goals/Human Immunodeficiency Virus (HIV) Acquired Immune Deficiency Syndrome (AIDS) ARV Drugs Allocation by N1 billion; routine immunization vaccines was reduced by N1.75billion; malaria programme procurement and distribution of insecticides was reduced by N0.8 billion. This list is not exhaustive but also indrive the power sector where the National Assembly cut N16.3 billion from various power projects.

Okonjo – Iweala should be praised and not vilified over her principled stand on the festering crisis. As an internationally recognized economist, with vast experience in economic matters as it pertains to developing world, she understands the consequences and impact of an orderly budget presentation and implementation. As one of the ideologies of Jonathan’s transformation Agenda, the Coordinating Minister of the ideologies is an insider with grasp and deep knowledge of the priorities and blueprint of the present administration for national development.

READ ALSO  Good Governance: Kaura and Allegations from Bottom Pit of Hell - By Sanusi Muhammad

The changes, reductions and alterations by the National Assembly of Capital Projects estimates as submitted by the president in favour of areas of their own personal interest is nothing but distortions with negative consequences on our fledgling economy. Rather than recriminations by National Assembly arising from the removal of the additional N100 billion they sought for in the 2013 budget for constituency projects, the time has come for the parliamentarians to not only show restraint but understanding in the national interest. An over bloated budget is inimical to the economy since excessive spending without limits encourages huge budget deficits. This is an ill wind that will damage our economy by sending it on a downward spiral. The events in Greece, Spain and Portugal are instructive. Rather than this avoidable confrontation with the executive, commonsense should prevail as the search for understanding and common ground on these knotty issues continue.

In the spirit of cooperation between these two important arms of governments, projects which were not accommodated in the 2013 Appropriation Act can still be considered in subsequent appropriations. This should form part of a dynamic and progressive process based on the fact that government is a continuum.

So far, the ongoing stalemate has impacted negatively on the economy and held in abeyance, the president’s calculations pursuant to his transformation agenda. Already, earlier projections of government regarding the realization of 10,000 megawatts of power in December this year has become unrealistic due, in part, to this stalemate and reduction of allocations to this critical sector of the national economy. It is unpatriotic for the National Assembly to delay consideration and passage of the amendment bill in order to get back at the executive over non release of the N100billion constituency projects funds to members.

The primacy of collective interest is supreme and should guide the conduct of our leaders at all times. Having achieved the feat of earliest passage of the budget last year which may pundits heralded as the beginning of the inauguration of a paradigm shift in our polity, the National Assembly are duty bound to expeditiously deliberate on the amendment bill as submitted by the president. Not to do this would amount to gross dereliction of duty, an unhealthy development which will not only destroy the aforementioned gains of this year’s budget but will imperil the next budget of the 2014 fiscal year.

Ume wrote in umejames12@yahoo.com

Hey there! Exciting news - we've deactivated our website's comment provider to focus on more interactive channels! Join the conversation on our stories through Facebook, Twitter, and other social media pages, and let's chat, share, and connect in the best way possible!

Join our social media

For even more exclusive content!

spot_imgspot_imgspot_img

Of The Week
CARTOON

TOP STORIES

- Advertisement -

Of The Week
CARTOON

247Ureports Protects its' news articles from plagiarism as an important part of maintaining the integrity of our website.