The Appropriation Committees of the Senate and House of Representatives have submitted the details of the 2016 Appropriation Bill to the Clerk of the National Assembly for onward transmission to the Presidency.
In a statement jointly signed by the chairmen of the Appropriation Committees of the Senate and House of Representatives, Danjuma Goje and Abdulmumin Jibrin respectively, the committees thanked Nigerians for their patience and understanding.
The chairmen said it took their committees extra weeks to get the details ready so we could correct all the inconsistencies, errors, omissions and padding in the document submitted to them in December last year.
“Being the most important economic policy tool of government, the budget provides a comprehensive statement of our priorities as a nation.
“And as representatives of the people, the National Assembly remains the appropriate place to ensure that the details of such a document best match our national goals and aspirations.
“Therefore, what we have been doing in these past few weeks is to balance the projections for revenue against the estimates for expenditure based on the reality of our situation today.
“Unfortunately, that task has been made very difficult by the sloppy manner in which the 2016 Appropriation Bill was prepared by the executive such that many of the officials who came before our various committees practically disowned the inputs from their own departments and ministries.
“In most instances, and across several agencies, the bill that was initially presented to us failed in many respects to connect with the policy thrust of the government and the needs of our people.
“That is aside the fact that most of the figures simply did not just add up. It was one of the most controversial budgets that ever came to the National Assembly from the Executive.
“Fortunately, President Muhammadu Buhari, who we must commend for showing leadership, intervened and that helped in resolving what had become a serious logjam.
“Some officials in the executive branch have also been removed from their duty posts because of these glaring lapses. That happened because the president took direct responsibility and got involved in the process, not only to ensure synergy between the executive and the legislature but also so that we could both arrive at a budget that is implementable for the good of all Nigerians.
“However, it is important to stress that this is the first time we would have a transition from the ruling political party to the opposition, so some of these problems are understandable.
“We therefore believe that the executive will learn from the mistakes of this year, going forward. But we must also commend the leadership of the National Assembly as well as members of our own committees who have had to endure sleepless nights, especially in recent weeks.
“To the extent that the budget drafting phase is a long process, the committee stage provides the most significant opportunity for members of the public, including the media and civil society organizations to make their own contributions and we have taken into account all shades of opinions in arriving at the breakdown, which is now with the executive.
“Now that the 2016 budget has been passed, our next role is to add value to the process through legislative oversight functions that enable us to ensure adherence to priorities while monitoring effective allocation of resources. But there is a lesson that should not be lost on the executive given the current experience.
“We specifically urge the president to abide strictly with provisions of the Fiscal Responsibility Act which stipulates that the appropriation bill be presented early so that there could be sufficient time for interactive sessions between the executive and the legislature before the commencement of committee hearings.
“That way, we can avoid some of the controversies that dogged this year’s budget and add value to the entire process,” the statement added.
FG Restricts MDAs’ Use Of Business Class, Targets N13bn Savings
In its bid to ensure efficient use of government funds and reduce overhead costs, the federal government has restricted the use of business class for air travelling to only very top officials of the ministries’ departments and agencies (MDAs).
The federal ministry of finance, in a statement, yesterday, said that only ministers, permanent secretaries, chairmen of federal government committees, as well as chairmen and chief executives of parastatals and agencies should henceforth travel with business class, while all others are to use the economy class.
This move, initiated by the Efficiency Unit of the Federal Ministry of Finance, is to review the provisions of some extant government circulars on Overhead Expenses, one of which is on travels.
The Efficiency Unit is the initiative of the current Minister of Finance, Mrs Kemi Adeosun, and was set up to engender transparency and reduce government’s large expenditure through procurement in the various ministries, departments and agencies of the federal government.
According to the ministry, the Office of the Secretary to the Government of the Federation (OSGF) has already issued a circular to all MDAs informing them of the change which takes effect immediately.
With this move, the ministry has estimated that travel expenditure will drop by about 20 per cent if the provisions of the new circular are fully implemented.
Using the figure of N69.417 billion incurred on travels in 2014, a 20 per cent reduction in air travel expenditure will result in a cost-cutting of N13.88 billion.
Such large savings from travel, which should ordinarily not be a major expense item for the government, will become available for investment in capital projects such as roads, power, railways and public health facilities.
In the past, some government officials who should have been on Business Class usually travelled First Class, while many others travelled Business Class instead of Economy.
The Efficiency Unit, in its negotiation for discounts with local and international airlines, also recommended other measures for reducing the government’s large expenditure on travels to the OSGF.
The second recommendation bordered on the need to reduce the frequency of travels by ensuring that Board and Committee events such as meetings, workshops and conferences in Nigeria are held in locations where the institutions or persons participating in the event are domiciled.
Furthermore, such events should for the most part be held in Nigeria but where this is not possible, the prior approval of the secretary to the federal government should be secured.
In line with the present administration’s commitment to reform public expenditure, the OSGF accepted the recommendations in full and has accordingly issued a circular recently to effect the changes. The buy-in and prompt reaction of the OSGF is an attestation of the common resolve by government to its change mantra and the spirit of collaboration among government institutions and officials.
The savings are expected to be even larger when discounts secured from airlines are added. Already, 11 airlines have offered discounts on local and international routes for travel by MDAs while negotiations are on-going with others. The discounts received so far vary across routes and airlines and range from 7per cent to 50per cent. The Efficiency Unit expects the implementation of the price discounts secured from airlines to start in May 2016 when the agreements would have been signed with the airlines and MDA staff would have been trained and equipped for effective administration of the new process.
Other overhead expenditure items reviewed by the Efficiency Unit are those relating to refreshments and meals, honorarium and sitting allowance as well as advertising and publicity.
Measures that will standardise spending on these items, cut costs and promote transparency on these items have been recommended to the OSGF and the office of the head of the civil service of the federation, from which further cost-cutting on overhead expenditure is to be achieved.
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