The much-criticized 2018 budget presented to the National Assembly by President Muhammadu Buhari has scaled through second reading.
Some have described it as alarming that despite the lament at and complaints by some lawmakers, who described the 2018 budget as ‘dead on arrival’ and ‘fictitious’ was allowed to scale through first and second reading by the National Assembly.
By the requirements of the Fiscal Responsibility Act, 2007, the National Assembly must first approve the Medium Term Expenditure Framework (MTEF) before passing the next budget.
At the session led by the Speaker, Hon. Yakubu Dogara, the 2018-2020 MTEF and Fiscal Strategy Paper (FSP) were considered and approved.
The crude oil benchmark price for the 2018 budget which was pegged at $45 was increased to $47 in consideration of the current positive outlook in the global oil market and the expectation that OPEC and other allied oil partnership countries will sustain oil production cuts deep into 2018.
As part of its resolutions, the House noted that the projected 5.279trn for non-oil revenue in 2018 be adopted.
“In addition, revenue generating agencies should intensify efforts on collection and measures that would reduce revenue loss. Specifically, pioneer status and tax incentives must be beneficial to the economy”.
It advised the Central Bank of Nigeria to adopt measures, in order to close the gap between the parallel market and the official exchange rates, adding that borrowing must be tied to a project.
“N1.699tn new borrowing for 2018 as proposed by the Executive is adopted. In borrowing more, Government must remain focused and ensure it is used to fund critical projects that will increase productivity and contribute to financing such debt”.
The House took a two-week break from plenary on Tuesday to reconvene on December 19.
Performance assessment on the 2017 budget and defense sessions on the 2018 budget proposal would be carried out during the break.
Meanwhile, the 2018 budget is expected to pass the third reading in weeks ahead.
Following debates on the 2018 Budget by lawmakers, the 2018 N8.6trn Budget has passed second reading.
At the Senate, of the N8.6trn 2018 Budget estimate, N456bn was proposed for Statutory Transfer and N2trn for Debt Service. N3trn was projected for Recurrent-Non-Debt Expenditure and N2trn for contribution to the Development Fund for Capital Expenditure for the year ending Dec. 31, 2018.
Senate President, Dr. Bukola Saraki, lauded the lawmakers for making contributions to the general principles of the 2018 Appropriation Bill, urging standing committees to work within the two-week timeframe given for defense of the budget.
Saraki called on Ministries, Departments, and Agencies (MDAs) to comply with invitations sent, for the defense of the budget.
“We know that the time-table is very tight and we will be suspending plenary to enable us start the defence.
“This is not time for excuse for Ministers or heads of parastatals to be travelling and not be able to attend the defence. We do not have the time. It is a very short timetable so that the committees can wrap up to be able to present their reports by the time we resume on Dec. 19”.
The Senate President disclosed that there would a public hearing on the budget during the week to enable the public have input before its passage.
Some Nigerians had expected that since the lawmakers were able to detect many flaws from the Budget Proposal, it would be corrected before scaling second reading.
Others opined that they expected the lawmakers to return the 2018 budget proposal to the President since it was described as ‘unrealistic’ by same lawmakers.
Stakeholders have advised that the 2018 Budget be reviewed to avoid a repeat of what happened to the 2015 budget (padded).
Recall that President Muhammadu Buhari had on November 7, 2017 presented the 2018 Budget estimates of N8.6 trillion to the Joint Session of the National Assembly.
