*Says inclusion of N36.59bn new schemes negates principle of separation of powers
*Signs bill but to return it for amendment
*Lawan: Lawmakers in order; executive, legislative judgements don’t always have to be same
President Muhammadu Buhari yesterday turned down the decision of the National Assembly to insert 6,576 projects in the 2022 budget.
Buhari said the inclusion of new provisions totaling N36.59 billion for what the federal lawmakers called National Assembly’s projects in the Service Wide Vote negates the principles of separation of powers and financial autonomy of the legislative arm of government.
The President spoke at the signing of the 2022 Appropriation Bill entitled “Budget of Economic Growth and Sustainability” into law at the Presidential Villa, Abuja.
He said he would return the act to the National Assembly for amendment as soon as the assembly resumes to ensure that critical ongoing projects cardinal to his administration do not suffer a setback due to reduced funding.
But Senate President Ahmed Lawan said the National Assembly did nothing wrong, arguing that the judgments of the legislature and the executive, on various issues do not always have to be the same.
The President’s displeasure confirms the lead story of the last Sunday’s edition of The Nation entitled 2022 Budget: Misgivings in Presidency over N1trillion increase by NASS.
Buhari, who yesterday also signed the Finance Bill 2021, which he said is critical to the execution of the 2022 budget, said he assented to the 2022 Appropriation Bill to enable its implementation to commence today.
The President was disappointed that the NASS ignored his concern while presenting the budget in October that the fiscal year 2022 would be very crucial in his administration’s efforts to complete and put to use critical agenda projects, as well as improve the general living conditions of our people.
“It is in this regard that I must express my reservations about many of the changes that the National Assembly has made to the 2022 Executive Budget proposal,” he said.
He listed some of the ‘worrisome changes’ as follows: “Increase in projected FGN Independent Revenue by N400 billion, the justification for which is yet to be provided to the Executive;
“Reduction in the provision for Sinking Fund to Retire Maturing Bonds by N22 billion without any explanation;
“Reduction of the provisions for the non-regular allowances of the Nigerian Police Force and the Nigerian Navy by N15 billion and N5 billion respectively.”
He said: “This is particularly worrisome because personnel cost provisions are based on agencies’ nominal roll and approved salaries/allowances; Furthermore, an increase of N21.72 billion in the overhead budgets of some MDAs, while the sum of N1.96 billion was cut from the provision for some MDAs without apparent justification;
“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.”
Buhari was similarly shocked by reductions in provisions for some critical projects, including N12.6 billion in the Ministry of Transport’s budget for the ongoing rail modernisation projects; N25.8 billion from Power Sector Reform Programme under the Ministry of Finance, Budget and National Planning; N14.5 billion from several projects of the Ministry of Agriculture, and introducing over 1,500 new projects into the budgets of this ministry and its agencies.
He said: “Inclusion of new provisions totaling 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.
“Reduction in the provisions for many strategic capital projects to introduce ‘Empowerment’ projects.
“The cuts in the provisions for several of these projects by the National Assembly may render the projects un-implementable or set back their completion, especially some of this administration’s strategic capital projects.
“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 conceptualised, designed and costed.
“Many more projects have been added to the budgets of some MDAs with no consideration for the institutional capacity to execute the additional projects and/or for the incremental recurrent expenditure that may be required.”
President Buhari declared that it was surprising that despite the National Assembly increasing projected revenue by N609.27 billion, the additional Executive request of N186.53 billion for critical expenditure items could not be accommodated without increasing the deficit, while the sum of N550.59 billion from the projected incremental revenues was allocated at the discretion of the National Assembly.
Explaining why he signed the bill despite its ‘flaws’, Buhari said it was to “enable its implementation to commence on 1st January, 2022.
He added: “However, I will revert to the National Assembly with a request for amendment and/or virement as soon as the Assembly resumes to ensure that critical ongoing projects that are cardinal to this administration and those nearing completion do not suffer a setback due to reduced funding.”
On COVID-19 and budget implementation, the President was happy at the success recorded in the implementation of the 2021 Budget even in the face of the lingering adverse effects of the pandemic.
His words: “The sum of N3.94 trillion that was provided for the implementation of capital projects by MDAs during the fiscal year has been released fully.
“To enable MDAs to complete the implementation of their 2021 capital projects and optimise the impact of the capital budget on the economy, they have been allowed to continue to expend the funds released for their 2021 capital budgets till 31st March, 2022.”
The President commended the understanding and speedy action of the National Assembly on this matter.
“As the 2022 Budget will be the last full year budget to be implemented by our administration, its effective implementation is very critical for delivering our legacy projects, promoting social inclusion and strengthening the resilience of the economy.
“The Ministry of Finance, Budget and National Planning will implement all measures required to ensure timely and targeted release of capital votes.
“All MDAs are to effect early commencement of project implementation while ensuring productive use of funds provided for achievement of the objectives set for their sectors.
“Considering the incidence of new COVID-19 variants globally, we will ensure timely implementation of measures provided for in the 2022 Budget to contain the spread of the virus and protect our people.
“We continue to count on the collaboration of the state governments in our effort to protect the lives and livelihood of our people.”
To achieve the laudable objectives of the 2022 Budget, President Buhari pledged that the Federal Government would further intensify revenue mobilisation efforts.
He expressed optimism in the ability of the government to finance the budget considering the positive global oil market outlook and the continuing improvement in non-oil revenues.
“To achieve our revenue targets, revenue generating agencies and, indeed, all MDAs must ensure prompt and full remittance of collected revenues.
“Relevant agencies must also ensure the realisation of our crude oil production and export targets.”
The President also announced that as the 2023 Budget is going to be a transition budget, work will start in earnest to ensure early submission of the 2023-2025 Medium-Term Expenditure Framework and Fiscal Strategy Paper as well as the 2023 Appropriation Bill to the National Assembly.
He directed Heads of Ministries, Departments and Agencies (MDAs) to cooperate with the Ministry of Finance, Budget and National Planning, more specifically with the Budget Office of the Federation, to realise this very important objective.
He appealed to Nigerians and the business community at large to fulfill their tax obligations promptly and said that “being a deficit budget, the specific borrowing plan will be forwarded to the National Assembly shortly.
“I count on the cooperation of the National Assembly for a quick consideration and approval of the Plan when submitted.
“All borrowings will be judiciously utilised and invested in our future growth and prosperity.”
The President also directed MDAs to liaise with the Bureau of Public Enterprises and/or the Infrastructure Concession and Regulatory Commission to explore available opportunities for public-private partnerships, concessions as well as climate finance arrangements to fast-track the pace of infrastructural development.
The 2022 Appropriation Bill was handed over to the President for signing by his Senior Special Assistant on National Assembly Matters (Senate), Senator Babajide Omoworare.
The event was witnessed by Senate President Ahmad Lawan; House of Representatives Speaker Femi Gbajabiamila; the Secretary to the Government of the Federation (SGF), Mr Boss Mustapha; and Finance Budget and National Planning Minister Zainab Ahmed.
Lawan: NASS doesn’t have to agree with the executive always
Justifying the action of the National Assembly in injecting the various projects in the budget, Senate President Ahmad Lawan said the legislative arm did nothing wrong.
The judgments of the legislature and the executive on various issues do not always have to be the same, he said.
He said the National Assembly had done what was expected of it and carried out its actions based on its judgment, adding that the objections raised by the President were nothing to worry about.
His words: “I think the most important thing is: Mr. President is happy with majority of what the National Assembly has done; and that is the most critical thing that we need to focus on.
“As for the observations Mr. President has raised, this is a natural and logical tendency between the executive and the legislature.
“Sometimes our views on certain issues may not necessarily be the same kind of views that the executive will have and hold on any particular matter.
“So I don’t think what the President did, by raising some observations, is something that we should worry about.
“I’m happy that the President signed the budget in the first place and he said he’s going back to the National Assembly to seek amendments or virement, and this is the natural, logical, legislative process.
“So I’m happy that we have done our own part in our own way. This is based on judgments. When we asked for more resources coming from independent sources, especially from government owned enterprises, of about N400 to N500 billion is because we believe that these government-owned enterprises should contribute even much more.
“In fact, I hold the opinion that they should have contributed about a trillion at least, not N500 billion or so.
“So I believe that the National Assembly was right in its judgment, but there is nothing wrong in the executive arm of government coming back to the National Assembly to see how we’re able to dialogue and go through the process and see where the misunderstanding is. But I don’t think that is supposed to be worrisome development for us.”
The new Budget of N17.127 trillion was transmitted to the President by the National Assembly on Friday, December 24.
President Buhari had submitted the draft proposed 2022 Budget of N16.391trillion to the joint session of the National Assembly on Thursday, October 7, 2021, asking the legislators to give it a speedy consideration.
