It‘ll be difficult implementing 2017 Budget – Osinbajo

Signs Appropriation Bill into law

Signs Appropriation Bill into law

By Abdullahi M. Gulloma
Abuja

Acting President Yemi Osinbajo, yesterday signed the N7.441 trillion 2017 Appropriation Bill into law, putting an end to months of speculations and uncertainty.
Osinbajo signed the budget at 4.41pm in the presence of the Senate President Abubakar Bukola Saraki; Speaker, House of Representatives, Hon. Yakubu Dogara; Chief of Staff to the President, Malam Abba Kyari, ministers and other top government functionaries.

The 2017 budget, tagged “Budget of Growth and Recovery” was approved by the National Assembly on May 11, 2017, with an upward review from N7.298 trillion to N7.441 trillion, and transmitted to the Presidency on May 19, 2017.
Speaking at the event, Osinbajo said the signing of the 2017 Appropriations Bill into law was an important milestone in the country’s Economic Recovery and Growth Plan laid by President Muhammadu Buhari in April this year.
He, however, hinted that the document might be difficult if not impossible to implement, as, according to him, the National Assembly tinkered with most of the priority programmes of the executive.

This, Osinbajo explained, accounted for the delay in signing the bill into law.
“From the reports we received, the sessions were generally conducted in a friendly atmosphere. There is no doubt that our democracy is maturing. However, the final presentation and the signing of the budget has been considerably delayed. This was largely due to disagreements we had about the changes introduced to our 2017 Budget proposals by the National Assembly.
“The executive took the view that the changes fundamentally affected some of our priority programmes and would make implementation extremely difficult and in some cases impossible.
“I must say that the entire leadership of the National Assembly, led by the Senate President and the Speaker, adopted a commendably patriotic and statesmanlike approach to our engagements on resolving these critical issues,” the acting president explained.

Notwithstanding the development, he assured Nigerians that “the 2017 Budget, which I have signed into law today, is christened “Budget of Economic Recovery and Growth” and reflects our commitment to ensure strong linkage between the medium-term Economic Recovery and Growth Plan (ERGP) recently launched by His Excellency, President Muhammadu Buhari, and the annual budgets.
“It is designed to bring the Nigerian economy out of recession unto a path of sustainable and inclusive growth. The budget has a revenue projection of N5.08 trillion and an aggregate expenditure of N7.44 trillion. The projected fiscal deficit of N2.36 trillion is to be financed largely by borrowing.

“Let me assure those who have expressed concern about the growing public debt that we are taking several actions to grow government revenues as well as plug revenue leakages. This is because, notwithstanding the fact that our borrowings are still within sustainability limits, we are determined, in the medium term, to reduce our reliance on borrowings to finance our expenditures.
“Details of the budget, as approved by the National Assembly, will be made available by the Honourable Minister of Budget and National Planning. As you are all aware, our economy is already signaling a gradual recovery as growth is headed towards positive territory. First quarter GDP, at -0.52% compares favourably with -2.06% in the first quarter of 2016.
“Inflation is declining down to 17.24% from 18.74% as at May 2016. Our external reserves are now US$30.28 billion as at June 8, 2017 up from US$26.59 billion as at May 31, 2016. We are also gradually instilling confidence in our exchange rate regime. This improvement in GDP growth and other macro-economic indicators is largely attributable to our strategic implementation of the 2016 Budget as well as stronger macroeconomic management and policy coordination.

“I am confident that the 2017 Budget will deliver positive economic growth and prosperity-one that is self-sustaining and inclusive. In this regard, the 2017 budget will be implemented in line with our Economic Recovery and Growth Plan,” Osinabjo further remarked.
The Acting President said the final presentation and the signing of the budget was considerably delayed due to disagreements about the changes introduced to the 2017 Budget proposals by the National Assembly.
He said the executive believes that the changes made by the lawmakers fundamentally affected some of its priority programmes and would make implementation extremely difficult and in some cases impossible.

“The most important being that the leadership of the National Assembly has given us a commitment that the National Assembly will re-instate the budgetary allocations for all the important executive projects, such as the railway standard gauge projects, the Mambilla Power Project, the Second Niger Bridge, the Lagos-Ibadan Expressway etc. which they had reduced to fund some of the new projects they introduced.
“This re-instatement will be by way of an application for virement by the Executive which they have agreed will be expeditiously considered and approved by the National Assembly. It is as a result of that understanding and the outcome of our detailed engagements that we feel able to sign the 2017 Appropriations Bill into law today,” he said.

The Acting President said the executive and legislative arms of government have resolved to return to a predictable January to December fiscal year, stressing that it’s an important development because this accords with the financial year of most private sector companies, underscoring the crucial relationship between government and the private sector.
“Therefore, on the understanding that we will be submitting the 2018 Budget to the National Assembly by October 2017, the leadership of the National Assembly has committed to working towards the passage of the 2018 Budget into law before the end of 2017. I must, once more, express my appreciation to the leadership of the National Assembly, for the collaborative spirit in which these discussions were conducted,” he added.

 

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