DELAYED BUDGET BLUES: MATTERS ARISING
When President Umaru Yar’Adua presented the 2008 Appropriation Bill (2008
Budget) to the National Assembly (NASS) early November 2007, there was
much expectation of quick passage of the bill into law. The expectation
was premised on the cordial relations between the Executive and the
Legislature since the beginning of a new administration on May, 2007. Also
the National Assembly made promises of early passage of the Bill into law
with the House of Representatives under the newly elected leadership of
Rt. Hon. Dimeji Bankole denying itself some of the goodies of the
Yuletide.
But nothing of such happened, rather the 2008 Budget is over three months
late in coming into effect .It was only signed into law on April14. Not
only was its coming into effect as law late, it also threw up issues that
one think the public should be well educated on as it strikes at deeping
our democracy as well as ensuring overall development for our people. How
did we get to a stage that a hitherto cordial relations between the
Executive and the Legislature almost degenerated to confrontation on the
issues of the budget?
Of course the deleterious effects of the delayed budget on the economy are
well known in our economy where government spending drive a preponderance
of various sectors. On a personal note, the delayed budget this public
officer in a big ways as I have had to serve the nation through the
Speaker of the House of Representatives on a limb. There was no official
accommodation, official car and other prerequisites of the office. And for
three months no compensation or alternative arrangements were in the
offing. Picture an adviser to No. 4 citizens jumping from a “kabu kabu”
(hired) car to another and you will get the personal angle of the delayed
2008 Budget. But as Hon. Bankole always admonish to us his aides,
sacrifices has to be made to get things done right as a foundation for
cleaning the Augean stable of Nigerian despoiled tapestry.
But what were the issues that led to the delay in passage of the Budget?
One notes that shortly before the passage of the budget, attempts were
made to ease the blame for the delayed budget on the National Assembly and
quite regrettably some columnist and other opinion molders and
stakeholders have latched on the unofficially adduced reasons form‘sources’ within the Executive to disparage the National Assembly. Some
have gone as far as attributing selfish reasons for the ‘recalcitrance’ of
the National Assembly in not know-towing to the Executive blue print. This
is quite regrettable as that position is not only uninformed on the
democratic tenent of separation of powers but also reflect a hangover
from our best forgotten military dictatorship era where the executive wax
lyrical and strong at the expense of the other democratic institutions of
a democracy- the legislature and the judiciary.
To start with the 1999 constitution that guides our democracy specifically
rest the power of appropriation on the National Assembly. Sections 80-82
are very clear on this and the part of the executive in the process of
enacting an Appropriation Act. The executive present, “estimates of
revenues and expenditure” in form of a bill to legislature for passage
into an Act. In a layman understanding estimates are projections that are
not static and the appropriating body realistically (theoretically) have
the powers to vary estimates positively or negatively. In exercising it
constitutionally vested role, the National Assembly increased the Budget
of N2.4 trillion presented by the President to N2.9 trillion. That and
other issues led to the initial disagreement as the passed budget by NASS
was returned to them with some “observations” bothering on the increase
and “clauses” aimed at monitoring and tracking the budget.
Were NASS justified in increasing the budget and were the increase selfish
as some are pontificating? The major increases were in the estimates of
Ministries, Departments and Agencies, MDAs for more projects as well as
constituency projects and recurrent expenditure for National Assembly.
Well it is usual for MDAs in their budget defence preparatory to passage
of an Act to ask for increases in funding for projects which are sited in
various constituencies of members of NASS. And as true representatives, it
is expected that such requests are acceded to by an appropriating body.
Similar argument goes for constituency projects which quite to the
contrary believe of many uninformed are to be executed by the Executive
and not NASS. NASS role is only to identify and make appropriation for
needed projects which are mostly Millennium Development Goals, MDGs
(health, education, water etc) projects.
The supporting argument against increases in the estimates is the problem
of deficit. Proponents have wondered aloud where the money to finance
these increases is going to come from and the fact that the end result
will be huge deficit. Quite right but deficit as most economists will
agree is not in itself a bad thing. It is the end to which it is incurred
that determine its desirability or otherwise. It must be noted that most
developed countries economies run on huge yearly deficits. If for instance
we incurred huge deficit in fixing our roads or power sector, the negative
effects can be ameliorated by the gains of these sector overtime. Of
course, as we all know our overall economic outlook would have been
positively different today if huge funds appropriated for the power sector
reforms are deficit budget that have been well utilized.
The other area of disagreement that was used to input selfishness on NASS
was the increase in recurrent expenditure. There is nothing un-altruistic
about this but the increases were informed by new reality and a
determination of doing the right things. For instance, Hon. Bankole led
House of Representatives has set for itself a more pro-active fulfillment
of its law-making and oversight functions. This requires huge funding to
prevent such ‘scandal’ as is presently playing out in the N300 million
unspent budget fund from 2007. The House of Representatives, under Bankole
properly funded intends to carry out its oversight functions without any
compromising handouts from MDAs thus the need for more fund and the
introduction of clauses to assist periodic oversight.
There is also the issue of capacity building which is related to the
scandal above. With less than 20% members being returnee legislators at
the national level, there is need for rigorous training in the intricacies
of law-making, oversight and representations. For durable laws to be
enacted, the enactors have to have a fairly good idea of what they are
legislating on to make informed contributions. The issue of ‘benchmark’
has been over flogged. But suffice to say that the upper limit fixed by
NASS is for below the current price of crude and the situation is possibly
going to remain same in spite of an incipient recession in the USA
economy.
On a optimistic he note, it is hope that while the Executive and the
Legislature can and should disagree on issues and programmes for the
benefit of the people, the era of confrontation between the Executives and
the Legislature is over and done with. President Yar’Adua has shown enough
openness and willingness to cooperate for the good of all as witnessed in
the handling of “16 secret accounts” not captured by the 2008 Budget and
the House of Representatives discovered N450 billion unspent funds from
2007 budget, all of which accounted for the initial delay in the process
of passage of the budget. NASS is willing to reciprocate the spirit of
openness and cooperation. The president should only watch out for some
officials in his Executive pursuing personal agenda with sponsored
confrontational stories against NASS. Rightly dialogue and consensus
triumphed over personal agenda. The 2008 Appropriation Act is now a law
and as agreed between the Executive and the Legislature amendments to the
law on any areas of disagreement can come to NASS as applicable to any
other law in addition to the constitutionally guaranteed supplementary
appropriation bill.
BY KAYODE ODUNARO
Chief Kayode Odunaro
Special Adviser (Communications) to the Hon. Speaker House of
Representatives.