Home Latest News 2018 budget’ll be difficult to implement, says Buhari

2018 budget’ll be difficult to implement, says Buhari

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President Muhammadu Buhari Wednesday signed the 2018 appropriation bill into law,  with an observation that the budget as passed by the National Assembly would be difficult to implement.

Buhari said that would be as a result of N347 billion cut in allocation to some 4700 critical projects and the insertion of 6403 entirely new ones by the lawmakers at a whopping N578 billion.

The President also observed that while the late passage had aborted the plan to return the national budget to January -December cycle, the changes introduced by the legislature would make it impossible to deliver on the nation’s Economic Growth and Recovery Plan.

He said: “As I mentioned during the presentation of the 2018 Appropriation Bill, we intend to use the 2018 Budget to consolidate the achievements of previous budgets and deliver on Nigeria’s Economic Recovery and Growth Plan (ERGP) 2017-2020.

“It is in this regard that I am concerned about some of the changes that the National Assembly has made to the budget proposals that I presented.  The logic behind the Constitutional direction that budgets should be proposed by the Executive is that, it is the Executive that knows and defines its policies and projects.

“Unfortunately, that has not been given much regard in what has been sent to me.  The National Assembly made cuts amounting to 347 billion Naira in the allocations to 4,700 projects submitted to them for consideration and introduced 6,403 projects of their own amounting to 578 billion Naira.

“Many of the projects cut are critical and may be difficult, if not impossible, to implement with the reduced allocation.  Some of the new projects inserted by the National Assembly have not been properly conceptualized, designed and costed and will therefore be difficult to execute.

“Furthermore, many of these new projects introduced by the National Assembly have been added to the budgets of most MDAs with no consideration for institutional capacity to execute them or the incremental recurrent expenditure that may be required.

“As it is, some of these projects relate to matters that are the responsibility of the States and Local Governments, and for which the Federal Government should therefore not be unduly burdened.

“The provisions for some nationally/regionally strategic infrastructure projects such as Counter-part funding for the Mambilla Power Plant, Second Niger Bridge/ancillary roads, the East-West Road, Bonny-Bodo Road, Lagos-Ibadan Expressway and Itakpe-Ajaokuta Rail Project were cut by an aggregate of 11.5 billion Naira.”

Other projects that would suffer as a result of the cut according to Buhari  include “provisions for some ongoing critical infrastructure projects in the FCT, Abuja especially major arterial roads and the mass transit rail project which were cut by a total of 7.5 billion Naira.

“The provision for Rehabilitation and Additional Security Measures for the United Nations Building by the FCT, Abuja was cut by 3.9 billion Naira from 4 billion Naira to 100 million Naira; this will make it impossible for the Federal Government of Nigeria to fulfill its commitment to the United Nations on this project.

“The provisions for various Strategic Interventions in the health sector such as the upgrade of some tertiary health institutions, transport and storage of vaccines through the cold chain supply system, provision of anti-retroviral drugs for persons on treatment, establishment of chemotherapy centres and procurement of dialysis consumables were cut by an aggregate amount of 7.45 billion Naira.

“The provision for security infrastructure in the 104 Unity Schools across the country were cut by 3 billion Naira at a time when securing our students against acts of terrorism ought to be a major concern of government.”

The President also expressed concern over the increase in the budget of the legislature by N14.5 billion without any discussion with the executive.

He said, however, that he had gone ahead to sign the budget despite his observations in order not to slow down the pace of governance already compounded by the late passage of the budget.

He said he would send a supplementary appropriation bill to the National Assembly in the days ahead to remedy the most critical of the issues raised.

His words: “Another area of concern is the increase by the National Assembly of the provisions for Statutory Transfers by an aggregate of 73.96 billion Naira.  Most of these increases are for recurrent expenditure at a time we are trying to keep down the cost of governance.

“An example of this increase is the budget of the National Assembly itself which has increased by 14.5 billion Naira, from 125 billion Naira to 139.5 billion Naira without any discussion with the Executive.

“Notwithstanding the above stated observations, I have decided to sign the 2018 Budget in order not to further slowdown the pace of recovery of our economy, which has doubtlessly been affected by the delay in passing the budget.

“However, it is my intention to seek to remedy some of the most critical of these issues through a supplementary and/or amendment budget which I hope the National Assembly will be able to expeditiously consider.”

President Buhari announced that the 2018 budget recorded high success in implementation with the release of a total sum of 1.5 trillion Naira for the execution of capital projects.

“In response to this and other policy measures implemented, we have observed significant improvement in the performance of the Nigerian economy.

“To achieve the laudable objectives of the 2018 Budget, we will work very hard to generate the revenues required to finance our projects and programmes.  The positive global oil market outlook, as well as continuing improvement in non-oil revenues, make us optimistic about our ability to finance the budget.

“However, being a deficit budget, the Borrowing Plan will be forwarded to the National Assembly shortly.  I crave the indulgence of the National Assembly for a speedy consideration and approval of the Plan ” the President said.

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