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Tag: appropriation Bill

  • Fayose presents N98b budget

    Fayose presents N98b budget

    •Governor campaigns for deputy at budget presentation

    Ekiti State Governor Ayo Fayose yesterday presented the 2018 Appropriation Bill of N98.6 billion to the House of Assembly.

    The governor used the occasion to campaign for his deputy, Prof. Kolapo Olusola, as his preferred successor.

    The occasion was his valedictory budget speech in which he presented Olusola to traditional rulers, lawmakers and other stakeholders as his “anointed candidate”.

    Fayose said: “You must support him (Olusola) for the governorship in the spirit of continuity and sustainability of the government’s policies.”

    The N98,611,545,040.22 budget, tagged: Budget of Continuity, has a recurrent expenditure of N66,442,426,169.81 billion and N32,169,118,870.85 billion as capital expenditure.

    According to him, the budget estimate will be financed through Federal allocation, internally generated revenue (IGR), Value Added Tax (VAT), Paris Club refunds and other sundry sources.

    Fayose, who appeared in a flowing agbada, which he described as a “presidential look”, said he would be the next President, even if doubting Thomases do not believe.

    The governor promised to complete ongoing projects before he leaves office on October 15, next year.

    He added that the new High Court complex would be delivered next March while the overhead bridge in Ado-Ekiti, the state capital, would be completed in May and the new Erekesan Market in July.

    Fayose said the budget accords high priority to stomach infrastructure, payment of salaries and improvement in the state’s IGR.

    He added: “My continuity philosophy is aimed at continuous and sustainable improvement and progress of Ekiti State, even after my tenure in office expires.

    “I will work for you and I will redouble my efforts at serving you until I hand over the mantle of leadership to my tested and preferred candidate, who is capable and trusted to continue the developmental race from where I would stop.

    “That is why I want to give Ekiti a man they can trust like me, a man who can be prudent in spending and sustain good taste. This is because my deputy is a professor of Building Technology.

    “Let me assure you, the Oja Oba will be inaugurated by July, which is just a few days before election and the flyover will be delivered by May, all in 2018.

    “We are going to block leakages and ensure that salaries are paid.

    “Just like I have said, I am not going to leave Ekiti and still be indebted to workers. That, I can assure Ekiti people.”

    Speaker Kola Oluwawole assured that the Appropriation Bill would be given expeditious passage so that the state can kick-start its projects early next year.

    He said: “The country has learnt a lesson from the ongoing recession that it is wrong to put all one’s eggs in one basket. The economy is dependent solely on oil at the expense of solid minerals and agriculture.

    “We know the resources of this state are limited, but the lawmakers will not shy away from its oversight functions. We will support the governor to ensure prudent management of the lean resources available.”

     

  • Gaidam present’s N92.182 billion as 2018 appropriation bill

    Gaidam present’s N92.182 billion as 2018 appropriation bill

    Yobe State Governor Ibrahim Gaidam has presented a total sum of N92,182,336,000 as appropriation Bill for the 2018 fiscal year.

    Gaidam who presented the bill on the floor of the State House of Assembly on Tuesday tagged “Budget of Consolidation and Socio- Economic Rejuvenation” said the budget  is targeted  at meeting the yearnings and aspirations of the people, as well as  “concretize Government’s numerous efforts of uplifting the standard and condition of living of all citizens of the State”.

    He explained that the budget is built on the vision and mission contained  in Yobe State Socio-Economic Reform Agenda, (YOSERA).

    “In the 2018 Budget estimates, this administration proposes to spend the sum of N92,182,336,000 which is expected to be generated from the Treasury Opening Balance, Internally Generated Revenue, Statutory Allocation, Value Added Tax (VAT), Ecological Fund, Excess Crude Oil/Exchange Rate Differential among others,” Gov. Gaidam said.

    The Governor noted that  to achieve far-reaching goals, government intend to spend the sum of N47,447,905,000 or 51.5% to cater for recurrent expenditure and the sum of N44,734,431,000 or 48.5% to cover capital expenditure.

    Enumerating the highlights of the Budget Gov. Gaidam said, “From holistic perspective, the 2018 Budget will enable us to complete all the on-going legacy projects that our administration is bequeathing to our good people and take on new ones, in line with our overall developmental agenda.

    “Therefore, the Ministry of Works, Transport and Energy take the lion share of N17.53 billion to enable government complete the ongoing Damaturu Cargo International Airport and other roads and infrastructural projects across the 17 Local Government Areas of the state.

    “This will be done through discipline, probity, transparency, and accountability which are some of the essential hallmarks of good governance,” Gaidam explained.

    In his response, the Speaker, Hon. Dogo thanked the governor for his prudence and accountability in governance, and promised that the budget will be soon be scrutinized to ensure its speedy passage into Law.

    Speaker Dala Dogo also pledged the support of the lawmakers for a smooth partnership to enable the government deliver the dividends of democracy to the common people of the state.

  • Only President can initiate Appropriation Bill

    While signing the 2017 Appropriation Bill into law earlier this month, acting President Yemi Osinbajo complained about the illegal projects introduced into the Appropriation Bill by the National Assembly (NASS).  Some NASS members in turn asked the acting President why he signed the Appropriation Bill into law knowing that the Bill contains illegal projects.

    Since then, there have been discussions in the media as to the power of NASS and the President in budgetary allocation.  For example, Vice-Chancellor, Nasarawa State University, Prof Mainoma in The Punch of June 19 and 20, tried to provide his own answer to the question Can legislators alter budget provisions as presented by the Executive?  In an interview on Channels Television on June 21, the former Director – General of Nigerian Institute of Advanced Legal Studies, Prof. Azinge (SAN) was of the view that because it is the responsibility of the legislators to make laws for the country, NASS can alter the Appropriation Bill as it likes in order to arrive at the Appropriation Act. This according to him, includes the right of NASS to insert new projects. This piece offers alternative view to that of Prof. Azinge and to explain that notwithstanding the reservations made by the acting President, he signed the Appropriation Bill into law in order to prevent a constitutional crisis that would have arisen if there is no 2017 Appropriation Act in place by the end of this month. This is because, the power given to the President under Section 82 of the constitution to spend money before the enactment of Appropriation Act would have expired by June 30.

    The basis of disagreement with Prof. Azinge is that NASS can only modify what is initiated by the President in the Appropriation Bill.  NASS cannot include in the Appropriation Bill anything that is not initiated by the President. While it is true that it is the sole responsibility of NASS to make laws for the country, both the President and NASS can normally initiate any Bill which when passed becomes a law for the country.  However, when it comes to the Appropriation Bill, NASS cannot initiate the Bill as only the President can do so as stipulated in Section 81 (1) of 1999 Nigeria Constitution.

    “The President shall cause to be prepared and laid before each House of the National Assembly at any time in each financial year estimates of the revenues and expenditure of the federation for the next following financial year”.

    Prof. Ben Nwabueze in a paper delivered at Abuja in 2000 entitled “The Constitutional Parameters of Budget Process” advanced reasons why NASS members should not initiate the budget. According to Nwabueze, only those who have responsibility for raising money to finance government expenditure should propose such expenditure.  If legislators were free to propose expenditure, they would be competing among themselves to secure as much of public funds as possible for their constituencies and other interests they represent at National Assembly.

    If anyone is still in doubt as to whether NASS members can initiate any project in the Appropriation Bill, that person should turn to Section 81(2) of 1999 Constitution. Under this section, only the President can create heads of expenditures in the Appropriation Bill.  It therefore follows that any expenditure head that is not created by the President must be regarded as illegal and consequently cannot be part of federal government budget.

    For the avoidance of any doubt, NASS can increase the total amount of the budget beyond what is proposed in the President’s Appropriation Bill.  However, this power is not derived from the 1999 constitution because the constitution did not specifically state so. It was the NASS members gave themselves the power to do so in the process of enacting the 2007 Fiscal Responsibility Act (FRA).  In the original Bill sent to NASS by the President, the budget deficit allowed for federal government was limited to 3% of estimated Gross Domestic Product (GDP).  It was NASS that gave itself the power to increase the deficit to “any sustainable percentage” (Section 12 of FRA). The power by NASS to increase the total amount of the President’s proposal is not the same thing as the power to increase the number of projects proposed by the President. To the extent that the constitution is superior to any Act of Parliament, no amount of power given to NASS members in FRA can make them insert new projects into the President’s Appropriation Bill because only the President can initiate Appropriation Bill.

    The Second thrust of this piece is to explain why the acting President signed the 2017 Appropriation Bill in spite of the inclusion of what he considered as illegal projects.

    Section 80(4) of the 1999 Constitution states categorically that:

    “No monies shall be withdrawn from the consolidated revenue fund or any other public fund of the Federation except, in the manner prescribed by National Assembly”.

    The manner through which NASS prescribes withdrawal from the consolidated revenue fund is through the Appropriation Act.  One important matter arising from the above provision is what happens to funding of government activities before the budget is approved.  The answer is to be found in what the Constitution calls authorization of expenditure in default of appropriations.

    According to Section 82 of 1999 Constitution

    “If the Appropriation Bill in respect of any financial year has not been passed into law by the beginning of the financial year, the President may authorize the withdrawal of monies from the Consolidated Revenue Fund of the Federation for the purpose of meeting-expenditure necessary to carry on the services of the Government of the Federation for a period not exceeding six months, or until the coming into operation of the Appropriation Act whichever is the earlier: Provided that the withdrawal in respect of any such period shall not exceed the amount authorized to be withdrawn from the Consolidated Revenue Fund of the Federation under the provisions of the Appropriation Act passed by the National Assembly for the corresponding period in the immediately preceding financial year, being an amount proportionate to the total amount so authorized for the immediately preceding financial year.” 

    This provision allows the President to spend money only on existing activity or programme before the budget is approved. The amount that can be withdrawn per month on the authority of the President is limited to 1/12 of what was approved in the previous budget. This can be done every month up to the first six months of the financial year or when the Appropriation Act comes into existence whichever is earlier.  If by the end of June, no Appropriation Act is in place there will be constitutional crisis as the President can no longer withdraw money from the Consolidated Revenue Fund.  It is clear that the acting President signed this year Appropriation Act in June in order to prevent constitutional crisis.

    However, in order for the legislators to show their electorates what they are doing  for them at Abuja, there is the need for the President to accommodate reasonable demands that can be funded from the legislators in the Appropriation Bill before it is submitted to NASS. One way to go about this is for the legislators from each senatorial district to come together to identify projects that are of common interest to their senatorial district for possible funding by the President.

     

    • Prof Omolehinwa is of Department of Accounting, University of Lagos.

  • NASS increases 2017 budget

    The House of Representatives on Tuesday received the report of 2017 N7.30 trillion Appropriation Bill from its Committee on Appropriation for final consideration.

    The report indicated that the committee increased the budget to N7.44 trillion, representing an addition of about N143 billion to the one presented by President Muhammadu Buhari on Dec. 14, 2016.

    After the receipt of the bill, the House referred it to the Appropriation Committee on Jan. 26, 2017, but its processing suffered delay due to the inability of other committees to tidy their reports in time.

    Presenting the report at plenary, Chairman of the committee, Rep. Mustapha Dawaki, said that the committee worked with other committees in the House to arrive at the new figure for the budget.

    According to the report, N434.4 billion is for statutory transfer, N1.84 trillion for debt servicing and N177.46 billion is for sinking Fund for maturing bonds.

    The committee appropriated N2.99 trillion for recurrent (Non-Debt) expenditure, while N2.17 trillion was provided for contribution to the development fund for Capital Expenditure.

  • Dickson signs N243.2b Appropriation Bill into law

    Dickson signs N243.2b Appropriation Bill into law

    Bayelsa State Governor Seriake Dickson has signed this year’s N243.2 billion Appropriation Bill and the Educational Development Trust Fund Amendment Bill into law.
    A statement yesterday in Yenagoa, the state capital, quoted Dickson as saying the budget, tagged: Budget of Repositioning for Consolidation, was put together to complete various projects across the state.
    The governor said N111 billion was appropriated for capital projects.
    He urged ministries, departments and agencies (MDAs) to adhere to the implementation guidelines of the budget.
    Dickson advised the ministries to fast-track the award of contracts, adding that his administration was committed to completing most of the projects and programmes this year.
    The governor said recurrent expenditures, such as salaries, pensions, gratuities and overhead, would gulp the balance of the budget.
    He hailed workers for their understanding and patience, saying the government was working out modalities on how to settle their salary arrears.
    On the Educational Development Trust Fund (EDTF), Dickson said the law was amended to include the elevation of the secretary of the board to the level of a director in the public service, among others.
    Presenting the bills, House of Assembly Speaker Benson Konbowei said of the N243.2 billion, personnel expenditure, including gratuities and pensions, was allocated N52.5 billion.
    The Speaker said consolidated revenue funds stood at N14 million, bringing the total to N66.7 billion.
    He said N40.8 billion was for overhead cost, while N24 billion was allocated to Cash on Transfer (COT), Value Added Tax (VAT) deductions and other financial consultancy services.
    Konbowei added that N88.1 billion will be expended on capital expenditure while other aspects of capital project funds are to take N23 billion, bringing the total to over N111 billion.

  • Delta Assembly passes N294.4b Appropriation Bill

    The Delta State House of Assembly yesterday passed this year’s Appropriation Bill of N294.4 billion.

    Governor Ifeanyi Okowa presented a budget proposal of N270.9 billion to the Assembly in November. The lawmakers increased it by about N23 billion.

    The passage of the bill followed a report presented by the Chairman House Committee on Finance and Appropriation, Miss Erhiatake Ibori, during plenary.

    News Agency of Nigeria (NAN) reports that N158 billion was approved for Recurrent Expenditure, while  Capital Expenditure had N136.4 billion.

    Presenting the report, Miss Ibori noted that “after careful evaluation and consideration of the proposals, the committee came up with the budget size of N294.4 billion”.

    She added: “The 2017 Appropriation Bill shows an increase of about N23 billion on the initial N270.9 billion budget presented by Governor Okowa in November.”

    She said the increase was premised on an envisaged increase in the income that would accrue to the state from the Federation Account owing to global oil price increase.

    “The Senate’s approval of $44.5 per barrel benchmark, at N305 exchange rate, is also at variance with the state’s $42.5 per barrel benchmark at N297 per dollar exchange rate.”

    Miss Ibori said the budget showed the focus and direction of the state government’s development for the state.

    Majority leader Tim Owhefere moved the motion for the third reading of the bill and was seconded by Minority leader Festus Okoh, before it was unanimously adopted.

    The Speaker Monday Igbuya, hailed the committee for the speedy passage of the bill and directed the Clerk to transmit a copy to the governor for his assent.

  • Rivers passes N470bn Appropriation Bill

    Rivers passes N470bn Appropriation Bill

    The Rivers State House of Assembly on Friday passed the state’s 2017 Appropriation Bill of N470 billion.

    The News Agency of Nigeria (NAN) reports that the document was passed after the various ministries and agencies of the government defended their allocations.

    Speaking at the Plenary, the Speaker of the Assembly, Mr Dabutorudima Adams, said the House was satisfied with the performance of all the agencies of government that defended their allocations.

    He said the House was also satisfied with the performance of the 2016 budget.

    Adams said the adherence of the Executive arm in the implementation of the 2016 fiscal document, necessitated the approval of the 2017 budget.

    “The consultations on the 2017 document carried out by the lawmakers with the various agencies, ministries and parastatals were strong enough.

    “Today, we are approving the 2017 Appropriation Bill as a valid working document for the next fiscal year.

    “The budget would no doubt put smiles on the faces of the people of the state as it would support the creation of jobs for our teeming youths and women,’’ he said.

  • Lawmakers to approach court over ownership of budget

    Lawmakers to approach court over ownership of budget

    A group of serving and former members of the House of Representatives has disclosed its intention to subject Section 80 (4) of the constitution to legal interpretation on the ownership of the budget document.

    Section 80 (4) which literally confers on the legislature absolute power of control over public funds, states that: “No money shall be withdrawn from the Consolidated Revenue Fund or any other public fund of the Federation, except in the manner prescribed by the National Assembly”.

    The lawmakers under the aegis of Faculty Board of Initiatives (FBI) however felt that the controversy generated by the budget padding issue has made it expedient to approach the court for proper interpretation of the law.

    The Spokesman of the group, Eseme Eyibo, at a press briefing Thursday said the group believed that the ‘padding’ was a misapplication of the word because, as lawmakers, the constitution allowed budget proposals to be adjusted which was why it was presented as a bill by the President.

    According to the former House Spokesman, the annual Appropriation bill flows from the Executive to the Legislature and goes back to the Executive after its passage before assent and implementation.

    He noted that pre-budget meeting between both arms of government that allows the executive  to take into account the input of the legislature would have been of no basis, if it was not provided for by the constitution.

    As a result, Eyibo opined that the lawmakers are constitutionally allowed to adjust the budget proposal.

    While admitting that an abuse of the process was possible, he urged Nigerians to protect the legislature in order to ensure checks and and balances, as well as separation of power in government.

    Eyibo pleaded that the controversy should not jeopardize constituency projects of the legislature as the Public Procurement Act is there to take care of the abuses if adhered to.

    “The Appropriation act is a law which flows from budgetary estimate from executive to the legislature and back to the presidency as prescribed by section 80 sub section 4 of the constitution.

    “The question is could the framers of the constitution could have envisaged that no money from the consolidation fund be spent without the prescription of the legislature? 

    “It goes to mean that budget was not meant to be rubber stamped by the legislature.  Budgetary proposal was intended to come through the legislature so that the principles of balance and separation of power could be strengthened.

    “Adjustments made in the budget is what we believe that the budget must have been padded. The term is wrongly applied here”.

    “Constituency and zonal interventions projects is in tandem with democratic tenets, Nigerians must protect the sanctity of the legislature because it remains an integral part of democracy and rule of law in the polity.

    “It is important to preserve the institution.  Let us not behave like a society acting drama in the theatre of the absured. I am pleading with Nigerians that please the word padding is a misapplication in the circumstances of the budget.

    “Constituency projects and zonal interventions projects are intended to serve the people. We are here to call for the preservation of the institution and expressed support for the president.”

  • National Assembly slashes 2016 budget by N17b

    National Assembly slashes 2016 budget by N17b

    The Senate Wednesday passed the 2016 controversial budget with a reduction of over N17 billion.

    President Muhammadu Buhar had on December 22, 2015 presented to the joint session of the National Assembly Appropriation Bill of N6, 077,680,000,000 for consideration and passage into law.

    But the Senate passed N6, 060,677,358,227 as the 2016 budget, a reduction of N0, 017,002,641,773.

    Chairman, Senate Committee on Appropriation, Senator Mohammed Danjuma Goje who presented the report of his committee noted that in view of the revenue and general economic challenges confronting the country, “the committee, has in a landmark decision, not witnessed since the advent of the present democratic dispensation in 1999, reduced the size of the aggregate expenditure and consequently reduced the total recurrent, deficit and borrowing plan.”

    Part of the highlights of the budget as passed included  Aggregate Expenditure N6,060,677,358,227; Statutory  Transfers  N351,370,000.000 (retained); Debt Service N1,475,320,000,000 (retained); Recurrent Expenditure reduced from N2,648,600,000,000 to N2,646,389,236,196; Capital Expenditure also reduced from N1,845,540,000,000 to N1,587,598,122,,031; Fiscal Deficit N2,204,936,925,711.16 while Deficit/GDP is 2.14%.

    Senator Goje arrived at the highlights after due consideration of the submissions by sub-committees and interaction with several stakeholders.

    The Senate adopted a bench mark price of $38 per barrel on crude oil based on the recommendation of the Senate on the Medium Term Expenditure Framework/ Fiscal Strategy Paper (MTEF/FSP)

    The same benchmark of $38pb adopted by the Senate was also proposed by the Executive.

    The Executive proposals of crude oil production of 2.2 million barrels per day and an exchange rate of N197 to $1 were also adopted

    The committee observed that the late presentation of the budget affected its timely passage.

    The committee also said that the 2016 Appropriation Bill, after its presentation to the National Assembly, was seen to be “fraught with some inconsistencies from ministries, departments and agencies, given the subsequent reference by them to different versions of the budget.”

    Goje who said that the inconsistencies in the fiscal document were also noticed at the level of the sub-committees, described them as “strange and goes against proper budgetary procedures and processes with attendant implications.”

    The committee chairman told the Senate that they observed that the available revenue for appropriation was grossly inadequate to meet the huge demand of MDAs to prosecute needed programmes for national development across all spheres in the economy.

    Goje said, “The 2016 (Appropriation) Bill seeks to stimulate the economy by the recurrent expenditure as compared to the capital component at a ratio of 30:70% is still very high. This takes away from the infrastructure-stimulus funding that the country so desperately needs for development.”

    He noted that the Appropriation Bill contained a number of omissions particularly in the area of personnel cost.

    Goje added that “though the Appropriation Committee has filled some of the gaps, there are many outstanding cases which could raise serious concern in the course of the year.”

    The committee recommended among others that subsequent budgets should be submitted in strict compliance with the provisions of the Fiscal Responsibility Act to enable the National Assembly conduct proper engagement and to conclude the budget in good time.

    The committee also said that there should be proper engagement in future between the Budget Office and MDAs on the budget contents in order to avoid  what appeared to be a disconnect between them in the processing of the budget proposals.

    Goje specifically referred to a situation where some MDAs disowned their budget before the Appropriation Committee.

    Some statutory transfer allocations included National Judicial Council N70b; Niger Delta Development Commission N41,050b, Universal Basic Education N77,110b; National Assembly N115b; Public Complaint Commission N2b, Independent National Electoral Commission N45b and National Human Rights Commission N1210b.

    Debt Service: Domestic debts N1, 307,400,000,000 while N54, 480,000,000 was allocated for Foreign Debts service.

    Presidential Amnesty Programme stipends and allowances of 30,000 Niger Delta ex-militants was allocated N7,875,000,000, Presidential Amnesty Programme operational cost N1,834,149,261 while N10,290,850739 was voted for Presidential Amnesty Programme reintegration of transformed ex-militants.

    Other allocations Ministry of Agriculture N46,175,963,859; Ministry of Defence N130,864,439,542; Ministry of Education N35,433,487,466; Ministry of Health N28,650,342,987, Ministry of Information and Culture N6,071,503,956; Ministry of Interior N61,713,279496; Ministry of Justice N879,736,744; Ministry of Solid Mineral Dev N7,332,623,257; Ministry of Niger Delta N19,440,328,551; Ministry of Transportation N188,674,679,674; Ministry of  Works, Power and Housing N422,964,928,495.

    Senate President, Abubakar Bukola Saraki said that what is unique about the exercise of passing the budget was that for once there was no bickering over benchmark.

     

  • Ekiti lawmakers pass Appropriation Bill

    Ekiti lawmakers pass Appropriation Bill

    Ekiti State lawmakers yesterday passed the 2016 Appropriation Bill into law, six days after Governor Ayo Fayose presented it.

    Last Wednesday, Fayose presented a budget proposal of N67 billion.

    The budget was passed after the chairman of the Committee on Finance and Appropriation, Samuel Jeje, presented his report yesterday.

    Deputy Leader Adeniran Alagbada moved the motion for the adoption of the report, which was unanimously approved by all the lawmakers.

    Speaker Kola Oluwawole said the budget was passed quickly because the lawmakers were involved from the beginning.

    Two other bills- State Kidnap and Terrorism (Prohibition) Bill 2015 and Office of Public Defender Bill 2015- were also passed.

    Few hours after the budget bill was passed, it was brought to Fayose at the Executive Chambers of the Governor’s Office for his assent.

    Others bills signed by the governor include: State Regency Bill; State 2015 Revised Appropriation Bill; State College of Technical and Commercial Agriculture Repeal Bill; State Office of the Defenders Bill and Kidnap and Terrorism Prohibition Bill 2016.

    Fayose directed Oluwawole to send copies of the budget to the Economic and Financial Crimes Commission and Independent Corrupt Practices and other Related Offences Commission for monitoring.