BY REUBEN AYODELE
Budget is a
yearly ritual that the executive arm of government makes yearly and passes to
the national assembly for approval. In the case of states, governors send it to
the state houses of assembly for approval and these budget are then send back
to the president for accent in case of state governors accent to it ,making it
the appropriation law for the year under
review.
But the
obvious facts about these budget and appropriation law are that the executive
arm of government never follows its implementation to the later. In some cases
implementation is below 45%.The type of budget system Nigeria operated is
outdated and unrealistic ,a budget which lay more emphasis on recurrent and overhead cost by government rather than
on capital expenditure. No country developed by allowing it operational budget to
be more on recurrent expenditure.
A review,
of the 2015 budget of Nigeria shows that the sum of N4,493,363,957,158(four
trillion four hundred and ninety three billion three hundred and sixty three
million nine hundred and fifty seven thousand one hundred and fifty eight naira
only). Was pass as the 2015 budget of the federal republic of Nigeria, out of
this amount N2,607,132,491,708(two trillion six hundred and seven billion one
hundred and thirty two million four hundred and ninety one thousand seven
hundred and eight naira only), is for recurrent expenditure. N953,620,000,000(nine
hundred and fifty three billion six hundred and twenty million naira) is
for debt services while capital
expenditure is a meager N556,995,465,449,00(five
hundred and fifty six billion nine hundred and ninety five million four hundred
and sixty five thousand four hundred and
forty nine naira only).The percentage breakdown
of the 2015 budget shows that recurrent
expenditure is 58.02%,debt services 21.22%, statutory transfer 8.36%,
capital expenditure 12.40%,national assembly 8.36% of the Nigeria’s budget accruing to it through the recurrent
expenditures.
How can the
country grow its economy, overcome the binding constraints on growth to
mobilize the necessary indexes to attain development, if we merely pay salaries
and allowances and do not invest in capital expenditure? Recurrent expenditures
are ballooning at the expense of capital expenditure. The change administration
of president Muhammadu Buhari
most strive to reduce this ugly trend if it is serious about moving
Nigeria towards industrialization.
Nigeria
cannot continue in this barber’s chair movement, were we are spending more
money to service debt than we are currently investing in the development of our
country. We borrow money to fund recurrent expenditure, which at most is used
in paying salaries, allowances and overhead cost of running government. These
situation is worrisome and if not properly nick in the bud may lead to collapse
of government .The situation were the federal government fund more than 601
ministry, department and agencies (MDA) and also having 144 foreign mission is unacceptable
. Why will the country still be running mission in Somalia, Iraq and Libya? This
monumental waste is unnecessary.
The 8th
national assembly must cut down cost of governance, the situation were the
national assembly currently enjoy 8.36% of our national budget is
irresponsible. A breakdown of senators salary and allowances shows that the
senate president has a total annual basic salary of N2,484,242.50 and annual
allowance of N6,210,606.25, making the total annual salary of N8,694,848.75
which brings the monthly salary to about
N724,570.75 in an addition, he collects 250% of his annual salary as
constituency allowance. However, his vehicles and maintenance of the vehicles
are provided by the federal government. Senators receives basic salary of N2,026,400.00,
they receives 75% of annual salary as allowance for vehicles and maintenance
and another 75% of their salary for domestic staff,30%,for entertainment and 250% as as constituency allowance.
All
senators who just concluded their tenure in the 7th national
assembly all received certain percentages of their annual salary as gratuity.
The 2015 budget as it is presently needs to be discarded or restructure.
Because it cannot address the real change Nigerians desires. The administration
of president Muhammadu Buhari should consider new sources of revenue generation to the treasury, aside this
current monolithic economy which is solely dependent on oil and gas .The
administration of change should stop this theft called petroleum subsidy by oil
marketers which is an avenue use in milking the economy. Government at all
levels should stop borrowing money to finance recurrent expenditures.
This
administration should call out economic summit whereby each state will make
presentation on the real state of it economy with a view of drawing out a
master plan, which will project Nigeria economy towards industrialization.
Government should cut down on the number of agencies and commissions which it’s
currently operate and fund especially those who have duplication of duties.
