Columnists
NATIONAL BUDGET SQUABBLES
The problem with the preparation of the national budget is like a bad coin that refuses to go away. When after so much delay the Acting President eventually signed the Budget, it was clear to those who had discernment that there were lingering issues but wise counsel must have informed the decision to sign the budget and get on with it at least to take the Budget beyond awaiting approval in the mind of the public to at least address implementation issues. But if what has come to light lately is as serious as it appears, then one might be inclined to enquire why the Budget was signed after all. If as the Minister of Works, Power and Housing has alleged; that the allocations to the various budget heads have been tampered with as to make nonsense of any attempt at meaningful implementation of any of the big ticket items on the Budget such as the Second Niger Bridge and the Mambilla Power project then you ask the question whether it should not have been better to tarry a while to have matters quickly straightened out before signature was appended. But on the other hand some have argued that after all considering the record of the country with the implementation of capital projects that it is better to get on with it to see if even some tentative progress could be made with kick starting the implementation of capital projects so badly needed for the rapid growth that would catalyze job creation opportunities as well as the development of the national economy.
We would not allow details of the name calling, accusations and counter accusations that have been traded between the Minister and the National Assembly delay us here only to observe that as a country we could certainly do better for what is at stake should not degenerate to the personal level or for that matter an ego trip. We are talking of the welfare of Nigerians for crying out loud and there are no misunderstandings that could not have been ironed out amicably instead of the grand standing and circus show we have all witnessed as dirty linen is washed in the public making us all veritable laughing stock in the comity of nations.
But as the honorable Minister lamented in his articulation of the issues at stake, it is worrisome and certainly tantamount to dissipation of executive energy if after presentations have been made to the various committees of the National Assembly for the National Assembly to turn round to begin to mutilate the budget through the addition of boreholes and dispensaries projects at various locations without any prior mention, discussion and agreement with the Executive. Certainly something is not quite right with this procedure. And it brings to the fore the need to settle once and for all who does what with the National Budget. We read that the court recently gave a ruling to the effect that the National Assembly could do almost anything it likes with the Budget and when you read such judgments you sympathize because we do not know how much of what goes on with the budget is understood by the presiding officers at our temple of justice.
If the Legislature could do almost what it likes with the Budget, it begs the distinct question regarding whose responsibility it is to prepare the budget. Most certainly we cannot have joint and equal role for the preparation of the National Budget as that would be a recipe for confusion and lack of any progress with the budget as a veritable blue print for the articulation of the master plan which should drive the economy in the year in view. The Budget is the only instrument which is available to the Executive for the implementation of the many promises it had made to the electorate and therefor the ownership of this instrument should not be in any doubt. Yes the Legislature as joint stakeholders and in keeping with the legislative mandate for the performance of oversight functions should have an input with the preparation of the budget but not of the nature of what we are currently witnessing. And what is obviously missing is the lack of adequate consultation and cooperation during the budget preparation phase.
we had advocated that the Legislature should have its own budget office which would liaise on an on-going basis with the Budget Office of the Federation so that by the time the Budget details are finalized the various interests could have been accommodated instead of what is happening now when after budget details have been presented and discussed only for input to be made and the budget heads altered almost in a surreptitious manner with the expectation that it could go through without almost anybody noticing. To facilitate the process of budget preparation and to ensure that we transcend beyond this unusual practice of commencing the budget year whenever the budget was approved which most certainly is not best practice, there is the need for the Executive to keep fidelity with the Fiscal Responsibility Act by ensuring that the Budget estimates are ready for presentation to the Legislature as prescribed by the end of August and for us to achieve this it is imperative for timelines to be worked out to ensure that the Budget is ready to be presented on the first day of the calendar year as it is the practice in matured economies. it would be salutary for the budget preparation process and have the distinct effect of not allowing project still under implementation to be left out if we revisit the three year rolling plan approach so that subsequent budget details within the plan period could be anticipated in advance thereby minimizing the dispute which now characterizes the process. Ordinarily one should have expected that the four year Economic Recovery and Growth Plan would have bridged the gap as we discuss. And that makes one ask what is happening to the Plan and when and how are we going to commence its implementation!
There are already some worrying developments with the implementation of the Budget so far. One is concerned about the extent of borrowing. It appears that loan is now being sought from any source for that matter. And one is somewhat concerned that the distinct impression one gets is that the borrowings are no longer project tied and we might not have adequately referenced the budgeted amount as specified in the approved budget in our rush and hurry to exit the recession. The obvious pitfall here is that we could be rapidly drifting to the problem of debt overhang of the recent past which would have the effect of impacting negatively the credit worthiness of the country as the inevitable defaults are witnessed.
It is also not reassuring that nobody hears anything about the state government budgets. This country cannot record the extent of commensurate growth and development which most compatriots would wish to witness if the state governments do not come on board with a different and serious mindset regarding the preparation, adopting and implementation of their respective budgets. This is a situation which tantamount to attempting to clap with one hand which we all agree is not possible. The National Economic Council to which the state governors are members should be leveraged upon to mount peer pressure on the state governments to begin to take matters relating to the budget seriously.
May be rather than approach the Supreme Court for judicial decision to be given regarding delineating responsibility for budget preparation as has been hinted, it might be better advised to constitute an all inclusive panel for this matter to be trashed out after due presentations have been made by concerned parties borrowing from experiences in other countries for a consensus to be reached on the way forward. My take is that the holistic understanding which might be required to reach a well informed decision on this matter might not be readily available at the courts. But whatever the case the ego trip which has characterized the procedure so far is patently inimical to the prospects of adopting the budget as a blue print for driving economic growth and development of the country and the citizenry is the worse for it
Boniface Chizea
Lagos
June 28, 2017.
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