Why 2017 budget may be worse than that of 2016 –NASS

What can be described as controversy has hit possible passage of the 2017 budget transmitted to the National Assembly on October 4, 2016 by President Muhammadu Buhari.

Buhari had in a letter accompanying the document stated that the Medium Term Expenditure Framework (MTEF) will cover 2017-2019, with an enhanced Fiscal Strategy Paper (FSP) that will help to drive government’s economic programme, if the 2017 budget proposal is passed.

He asked the law makers to approve a total expenditure of N6.847 trillion, with 33 per cent of revenue expected from the oil sector of 2.2 million barrels per day and on an exchange rate of N290 per dollar.

The executive also said the idea of having a three-year plan of the budget is to attain better social and developmental objectives, with all strategies for achieving and defining these being well articulated in the budget plan.

But members of the National Assembly have expressed doubt that the budget will sail smoothly through their prying eyes given some noticeable hindrances.

Some of the hitches they have described as unrealistic dreams, include the exchange rate projection and other inarticulate positions on how government intends to boost internally generated revenue.

“The only proposal that seems realistic in the executive papers, supporting the budget, is the accommodation of deficit N2.22 trillion and benchmarking oil at $42.50 per barrel, the rest is based on speculation,” Golu Timothy, chairman, Appropriation Committee of the House of Representatives told journalists at the weel.

He said if the executive mounts pressure and the bill is passed as it is today, the 2016 budget will be far better than it, despite being termed an appropriation that is making it difficult for Nigeria to fight its recession.

“How can anybody in today’s reality propose to peg exchange rate at N290 per dollar when in reality naira is about hitting N500 mark for a dollar, and with unresolved militant activities in the Niger Delta making it impossible for crude oil production forecast to be real in the next two years, the budget is full of hindrances”, the legislator stated.

Also, some Senators said the budgetary documents forwarded to them had no provision for the $30 billion loans being proposed by the executive.

To most of the law makers, the documents accompanying the budget proposal are very scanty, indicating that some of the assumptions were untidy and full of unrealistic expectations that could see Nigeria grappling with a budget that cannot be implemented.