How Outgoing NASS Encumbered 2019 Budget Implementation, Udoma Explains

Udo Udoma

By CLEMENT NWOJI, Abuja

Dissatisfied with the manner 2019 Budget proposal was handled by the outgoing 8th National Assembly (NASS) members, President Muhammadu Buhari has resolved to meet with incoming members as soon as proclaimed, to address the funding gaps and deficit created through injection of projects and expenditures outside the proposals presented by the executive.

The President had on Monday before signing the Budget into enabling Act, complained that the budget in its current state is incapable of implementation but that he was compelled to sign in order not to further delay the pace of economic recovery.

On Tuesday, the Minister of Budget and National planning, Sen. Udoma Udo Udoma, gave insights on how the NASS encumbered the implementation of the budget and the areas of complaints by the President.

Udoma who spoke during the public presentation and breakdown of the 2019 Budget, said that the President would engage the 9th National Assembly members to correct the anomaly through supplementary appropriation Bill.

According to Sen. Udoma, “Executive revenue assumptions were generally approved and adopted by NASS, except for unexplained increases totalling N31.5 billion on some non-oil revenue lines.

“NASS increased the budget size from N8.83 trillion to N8.92 trillion, translating to an increase of N90.33 billion.

“This has resulted in an overall increase of N58.8 billion in deficit. Inexplicably, NASS reduced the proposed borrowing from N1.649 trillion to N1.605 trillion, thus creating an overall unfunded deficit of N102.83 billion. To fully fund the budget, the level of borrowing may therefore have to increase.

“Allocations for some executive projects based on critical appraisal and linked to the Economic Recovery Growth Plan (ERGP) were reduced and a large number of new projects, mainly constituency type projects, were introduced”.

The Minister also cited that NASS inputted recurrent (non-debt) spending amounting to N17.38 billion more than executive proposal.

Apart from these, he said the proposal for provision to retire maturing bond to local contractors was reduced by N10 billion.

Udoma stressed that President Buhari intends to engage the leadership of the ninth NASS as soon as it emerges “to effect any amendments necessary to ensure he delivers on his electoral promises”.

Further, he said the President would the support of the NASS leadership “for a smoother, faster, budget process going forward and their collaboration to return to January-December fiscal year.”