…. As Senators knock MTEF/FSP
There are indications that President Muhammadu Buhari will likely submit the 2017 budget to a joint session of the National Assembly on Thursday, December 1st, 2016.
Submission of the budget was disclosed by Senate Minority Leader, Godswill Akpabio while giving his contribution on the debate on the 2017 to 2019 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) at Wednesday plenary.
This comes as the Senators have picked holes in the document submitted by the President.
The development comes about three weeks after the Senate rejected the documents for lack of details and returned same to the Executive.
Earlier this month, Senate Leader, Ali Ndume had described the fiscal proposals as ’empty’.
But in a twist of events at Wednesday plenary, lawmakers debated the same documents without details from the Executive.
It was learnt that the legislative body did not receive the necessary documents, hence they proceeded with the debate after a closed door session that lasted for about 40 minutes.
The document is based on the assumptions of average oil production of 2.2mbpd, average oil price of USD 42.5 per barrel and exchange rate of N290 per dollar for 2017.
The president’s proposal also indicated that the government is projecting a 3.02 percent GDP growth in 2017, while inflation is projected at 12.92percent for next year.
Irked by the failure of the President to submit fresh documents, senators wondered how the Buhari administration would turn around the economy in 12 calendar months without economic blueprint.
To Biodun Olujimi (PDP, Ekiti South), “The document is Voodoo-oriented. We don’t want any Voodoo contraption”.
A report released by the National Bureau of Statistics (NBS) in Abuja, said Consumer Price Index (CPI) increased to 18.3 per cent (year-on-year) in October from 17.9 per cent recorded in September.
It also put the third quarter (Q3) 2016 GDP growth at -2.44percent, as against -2.06percent in the second quarter (Q2) of 2016.
Another senator, Adeola Olamilekan (APC, Lagos West) called for the return of the document back to the Executive, even as Ibrahim Gobir (APC, Sokoto North) argued that the 3.02percent GDP growth rate proposal is unrealistic.
For Mohammed Hassan (PDP, Yobe South), there’s a disconnect between the monetary and fiscal policies of the Federal Government. He therefore called on the Executive to present an economic plan to get the country out of recession.
Others who spoke against the document, describing it as lacking in credibility include: Samuel Anyanwu, Dino Melaye, Joshua Lidani, Suleiman Adokwe, Bayero Nafada, Emmanuel Paulker among others.
However, Ahmed Sani (APC, Zamfara West), defended the document, calling on his colleagues to accept the President’s request and make necessary amendments.
According to him, Senate President Bukola Saraki had on Tuesday made reference to the President’s submission of the budget.
“Yesterday, you made reference to the fact that the President may be coming to the chambers to submit and read the 2017 budget on 1st of December. If that is the case and we send this (document) back now and wait for it to come and debate it before, it means that we will not be able to meet that deadline. But if we send it to the committee level, they may come up with something within the next three days that will be much much realistic.
“So, my appeal will be that the committee members should take into cognisance all the submissions and observations made; so that we can come up with a more realistic MTEF and FSP”, he said.
In his remark, Saraki who presided over the session, stated that the performance of the 2016 budget must be presented before the MTEF report is ready.
He also joined his colleagues in saying that the proposal is unrealistic.
“The Central Bank of Nigeria has said it is using N305 (to a dollar). There is no doubt as well that throughout this year, we did not achieve 2.2 million barrels per day; even in time of peace (in the oil rich Niger Delta), we have not achieved 2.5mbpd. How realistic is
2.2mbpd next year? The oil price as well looks conservative.
“Like some of our distinguished colleagues said, our responsibility is to work on it and use our capacity to do the right thing. We have our Committees on Appropriation and Finance that should not just take anything from the executive, sign it and return it (verbatim). If itmeans that we have to rehash it, look at it again, turn it around and
do what is right, then, that it our responsibility,” he stated.
Saraki therefore asked the Committees on Finance, Appropriations and National Assembly to submit a report on the performance of the 2016 budget. And referred the document to the joint committee.
ENDS.