Yearly budget padding as recurring decimal in NASS 

Last week Tuesday when President Muhammadu Buhari assented to N21.83trillion 2023 Budget , he subtly accused the National Assembly of inserting projects worth N770.72billion into it. TAIYE ODEWALE reports 

Meaning of Budget 

A budget is a financial plan for a specified period. It consists of analyzing expenses and matching them to existing or future income sources.

As for government at all levels, the financial plan is for yearly basis and predicated on estimated expenditures and projected revenues within a particular  fiscal year.

Recurring problem of padding at the federal level 

Since the Advent of the fourth republic in Nigeria, yearly budgeting by the federal government has always been characterised by accusations and counter accusations of paddings from both the executive and legislative arms of government irrespective of political parties in power.

The accusations and counter accusations happened when the Peoples Democratic Party (PDP) was in power at the federal level from May 1999 to May, 2015 and has also characterised the President Muhammadu Buhari-led All Progressives Congress (APC) administration at the federal level since 2016 despite having majority control of both Chambers of the National Assembly like the PDP when it was in power.

Even the harmonious working relationship the Senator Ahmad Lawan and Rt Hon Femi Gbajabiamila-led 9th National Assembly has with President Buhari’s executive arm of government, did not stop the accusations, particularly, against the National Assembly after passage of budget for each of the fiscal year.

Examples of such accusations were the ones made by President Muhammadu Buhari in December 2021 before signing the N17.127trillion 2022 budget into law and the one made last week Tuesday before signing the N21.83trillion 2023 budget into law.

Specifically, President Buhari in the accusations made against NASS on alleged padding of the 2022 budget said: “I must express my reservations about many of the changes that the National Assembly has made to the 2022 Executive Budget proposal.

“Some of the worrisome changes are as follows÷ Increase in projected FGN Independent Revenue by N400 billion, the justification for which is yet to be provided to the Executive.

“Increase in the provision for Capital spending (excluding Capital share in Statutory Transfer) by a net amount of N575.63 billion, from N4.89 trillion to N5.47 trillion. Nevertheless, provisions for some critical projects were reduced.

“Inclusion of new provisions totalling N36.59 billion for National Assembly’s projects in the Service Wide Vote which negates the principles of Separation of Powers and financial autonomy of the legislative arm of government.

“The changes to the original Executive proposal are in the form of new insertions, outright removals, reductions and/or increases in the amounts allocated to projects.

“Provisions made for as many as 10,733 projects were reduced while 6,576 new projects were introduced into the budget by the National Assembly.

“Most of the projects inserted relate to matters that are basically the responsibilities of state and Local Governments and do not appear to have been properly conceptualized, designed, and cost”. 

Though as requested for, amendments  were  later carried out on the budget by the National Assembly but similar paddings  were also alleged in the 2023 budget.

Alleged insertions made into the N21.83trillion 2023 Budget

Just like the previous years, President Buhari pointed out to the leadership of the National Assembly, observed changes the federal lawmakers made to the originally proposed N20.51trillion budget.

His words: “We have examined the changes made by the National Assembly to the 2023 Executive Budget proposal.

”The amended fiscal framework for 2023 as approved by the National Assembly shows additional revenues of N765.79 billion, and an unfunded deficit of N553.46 billion.

”It is clear that the National Assembly and the executive need to capture some of the proposed additional revenue sources in the fiscal framework. This must be rectified.

”I have also noted that the National Assembly introduced new projects into the 2023 budget proposal for which it has appropriated N770.72 billion. The National Assembly also increased the provisions made by Ministries, Departments and Agencies (MDAs) by N58.55 billion.

“My decision to sign the 2023 Appropriation Bill into law as passed by the National Assembly was to enable its implementation commence without delay, considering the imminent transition process to another democratically elected government”.

 Like an annual ritual, the President consequently directed the Minister of Finance, Budget and National Planning, Zainab Ahmed ,  to engage with the Legislature to revisit some of the changes made to the Executive budget proposal.

Expectedly, such engagements would be done in the coming weeks for required amendments and  implementation of the budget. 

But as always the case on yearly basis, 80% of the inserted projects by the National Assembly may not be executed by the executive.

Perhaps since it is a transitional budget and since President Buhari also wants NASS to approve the N23.7trillion Ways and Means Restructuring Request, the N770.7billion worth  inserted projects into  the N21.83trillion 2023 budget by the federal lawmakers, may be executed to some extent in the spirit of give and take.

Little wonder that despite subtly accusing NASS of padding the 2023 budget, President Buhari unlike in the past, was not categorical on sending an executive communication for amendments but requested them to give passage of Ways and  Means Restructuring, expeditious consideration.

”Balance of N22.7trillion Ways and Means, has accumulated over several years and represents funding provided by the CBN as lender of last resort to the government to enable it to meet obligations to lenders, as well as cover budgetary shortfalls in projected revenues and/or borrowings.

”I have no intention to fetter the right of the National Assembly to interrogate the composition of this balance, which can still be done even after granting the requested approval.

”Failure to grant the securitisation approval will however cost the government about N1.8 trillion in additional interest in 2023 given the differential between the applicable interest rates which is currently MPR plus 3% and the negotiated interest rate of 9% and a 40year repayment period on the securitised debt of the Ways and Means”, he explained.

Any end in sight to practice? 

Since the practice of budget padding by both the legislative and executive arms of government at the federal level within the  the last 23 years, cut across political parties and personalities in power, end to it seems not to be in sight but not impossible.