The Nigerian House of Representatives has stressed the need for all government’s Ministries Departments and Agencies, MDAs, to provide details of their actual income and expenditure profile for the three years running, 2018-2021, as a basis for MTEF/FSP consideration.
The Chairman House Committee on Finance, James Faleke stated this in a remark at the start of a 10-day interaction with the Finance Ministry and other stakeholders on the 2022-202 Mid Term Expenditure Framework MTEF and Fiscal Strategy Paper FSP.
Mr Faleke vowed to resist any attempts by Ministries Departments and Agencies to recycle capital projects in the year 2022 budget, saying the trend affects not the only implementation of budget but is detrimental to Nigeria’s growth and development.
He said that “the idea where the MDAs recycle unnecessary capital projects in the budget without due regards to essential projects that will engender sustainable development in the country is no longer tenable.”
Mr Faleke, explained that the National Assembly through the Committee of Finance would scrutinise all the capital vote and provide funds for agencies In-house capital requirements that are necessary “bearing in mind the overall objectives of the MTEF/FSP as an instrument for revamping ongoing drive to accelerate investment in critical infrastructures and human capital for sustainable social welfare and improved business environment.
He said; ”All Nigerian Government Ministries, Departments and Agencies are therefore advised to scale down on white elephant projects contained in their budget proposals, as a way of shoring up revenue for critical infrastructure and development of capital resources that have a direct impact on the people.”
The Speaker House of Representatives Mr Femi Gbajabiamila while declaring the event open said the House would continue to provide legislative measures that would ensure transparency in the nation’s budgeting, spending, and strategic planning.
Represented by the House Leader, Al-Hassan Ado Doguwa, Speaker Gbajabiamila said the measure was to achieve pressing development objectives.
“The Legislature is, by the constitutional imperative, the keeper of the public purse. In this capacity, we have the responsibility and the authority to act on behalf of the Nigerian People, to ensure that our collective resources are efficiently administered in service of the public good.
Let no one be in any doubt of our commitment in the 9th House of Representatives to live up to that responsibility by exercising the full extent of our authority as it relates to the appropriation process and oversight,” the Speaker added.
The Minister of Finance, Zainab Ahmed while presenting the document to the committee indicated that the global economic recovery was considered in preparing the 2022 Budget proposal expected to be laid before the National Assembly soon.
Mrs Ahmed said the 2022 budget estimates would be derived from the MTEF/FSP which comprises the government plan to accelerate our economic recovery process, promote social inclusion and strengthen the resilience of the economy.
“This has become necessary in the face of supply chain disruptions and heightened uncertainties occasioned by the COVID 19 pandemic, especially with the renewed wave of the prevalent Delta variant not only in our country but across the world,” the Minister said.
The Medium-Term Expenditure Framework and Fiscal Strategy Paper MTEF/FSP is a three-year plan in line with the Fiscal Responsibility Act 2007, which provides the basic estimates and assumptions for the annual budget and is a major feature of the annual budget preparation cycle.
It also provides guidance to Federal Government Ministries, Departments and Agencies in the formulation of policies and selections of projects and programs to ensure economic development. (VON)