Speaker of the House of Representatives, Rt. Hon. Femi Gbajabiamila on Wednesday commended President Muhammadu Buhari for presenting the 2020 Budget early enough he said will return Nigeria’s financial year to January to December.
TheNewsGuru (TNG) reports Speaker Gbajabiamila made this known at the Senate and House of Representatives committee on Appropriation 2- day public hearing on the 2020 Appropriation Bill starting today.
Recall that President Buhari presented a federal budget of N8.83 trillion for the 2019 fiscal year to a joint session of the 8th National Assembly in Abuja on Wednesday 19 December 2018.
The Senate, led by Senator Bukola Saraki, opened debate on the general principles of the 2019 Budget on Wednesday 13 March 2019, passing the 2019 Budget on Tuesday 30 April 2019, after the budget was increased from N8.83 trillion presented by President Buhari to N8.916 trillion.
The House of Representatives, also on Tuesday 30 April 2019, passed the N8.916 trillion 2019 Budget of the Federal Government of Nigeria submitted to 8th National Assembly by Buhari on Wednesday 19 December 2018.
President Buhari, barring the increase of the 2029 Budget by about N10 billion, signed the N8.92 trillion budget into law on Monday 27 May 2019 at the mini-conference hall of the president.
On Tuesday 8 October 2019, President Buhari presented the 2020 budget proposal to a joint session of the National Assembly with a call on the legislators to change the present budget cycle to January-December.
At the start of the 2-day Senate and House of Representatives committee on Appropriation public hearing today, Speaker Gbajabiamila commended Buhari for presenting the 2020 Budget early enough, stressing that this will return Nigeria’s financial year to January to December.
Gbajabiamila noted he was at the public hearing not to give a keynote address but to sit down and listen to the public before the legislators exercise full authority to appropriate.
He said that the budget of any country represented the blueprint of the direction its economy was going to take adding that it was the basis upon which everything else was built.
He said that the outcome of the hearing should reflect the true federal character of Nigeria.
“No lopsidedness; everybody has a part of what is the national cake. We are all stakeholders,” he said.
TNG reports President of the Senate, Senator Ahmad Lawan, who is also Chairman of the 9th National Assembly and who declared open the joint public hearing on the 2020 Appropriation Bill by the Senate and House committees on appropriation, was of the same opinion with the Speaker.
The Senate President reiterated that the 9th National Assembly was committed to correcting the anomaly in the Budget cycle.
He said the Assembly would ensure the passage of the 2020 Appropriation Bill of N10.33 trillion in December.
“We have set between the two chambers; and we have resolved that this time around, we must pass this budget before the end of December.
”We are hopeful that the budget will be passed before we go on Christmas break by God’s grace.
”And of course, I am glad to say that President Buhari had shown commitment to what the national assembly desires.
“This was seen when the government issued a statement asking ministers and heads of agencies not to travel without defending their budget; that is a total commitment to what we desire in the national assembly,” Lawan said.
He said that the public hearing on the 2020 appropriation was no doubt a special one because it was another important step in a bid to resolve the undesirable budget cycle.
“This cycle has created problems for planning and for the proper implementation of the nation’s macro-economic framework.
“The macro economic framework needs to be reasonably predictable the way it happens in other climes.
“It is when the framework is predictable that it can positively influence the micro details in the budget proposal.
“We are assured that it is only a wholesome commitment to these mandates that can give us the much needed growth and development”.
The president of the senate said that budget was critical to economic development and it was even more so for a nation like Nigeria where the economy needed continues stimulation.
“The importance of the Budget proposal in national development cannot therefore be overemphasised. This is the reason why inputs have to be all inclusive as we are now set to do.
“We understand that the budget proposal is about fiscal targets, resource allocation, public expenditure policy, productivity and efficiency.
“We also understand that the process is one of passage, mobilisation and execution.”
He further said that the lawmakers were determined to ensure that when the budget was passed, it would be properly implemented.
“As legislators, we have set out to be exemplary in the fulfillment of our core functions, which includes legislation, representation and oversighting,” he said.
Giving a presentation on the summary of 2019 budget performance and an economic and fiscal outlook for 2020, the Minister of Finance, Budget and National Planning, Hajiya Zainab Shamsuna said, “As at half-year, Nigeria actual aggregate revenue was N2.04 trillion, which is 58% of the pro rata target”.
On the economic and fiscal outlook for 2020, the Minister noted that there is a downward revision of the global economic outlook, and a decline in growth from advanced economies.
“Sub-Saharan Africa is projected to grow by 3.6%,” she said, while further noting that the macroeconomic stability has been largely achieved with a growth projection for 2019 at 3.01%, adding “Growth is however projected to be around 2.93% in 2020”.
The key assumptions and macro-framework of the 2020 Budget the Minister presented are: Oil Production – 2.18 million per barrels, Oil price – $57 billion, Exchange rate – N305/$, Inflation rate – 10.81%, Nominal Consumption – N122.75 trn, Nominal GDP – N142.96 trn, and GDP growth rate – 2.93%.
According to the Minister, the 2020 budget proposal consists of: Statutory transfer – N556.7 billion, Non debt recurrent expenditure – N4.88 trillion, Capital Expenditure- N2.14 trillion, Debt service – N2.45 trillion, and Sinking fund – N296 billion.
Rep. Mukhtar Betara and Senator Barau Jibrin are the Chairmen, Appropriations Committee of the House of Representatives and Senate, respectively.
Earlier, Chairman Senate Committee on Appropriation Jibril Barau said that the event was to allow the public to be part of the 2020 appropriation process.
He commended the President of the Senate for his uncommon determination exhibited to see to the restoration of the budget cycle of the country to begin from Jan. and end in Dec. of every year.
Barau said that the new cycle would assist the government and the private sector to properly plan their yearly activities and make more reliable predictions.
“We request that this gathering should make inputs that will assist the national assembly to work to achieve its targets for the passage of 2020 appropriation bill in the first week of Dec. 2019.”