2017 Budget scales second reading

The Senate on Thursday, January 26, passed

The N7.28 trillion appropriation has N1.7 trillion for debt servicing, N419 billion for statutory transfers, N177 billion for sinking funds and maturity bonds, N2.98 trillion for recurrent expenditure, and N2.06 trillion for capital expenditure.

Contributing to the budget debate, lawmakers expressed disappointment with the budgetary allocation for capital expenditure and other important sectors of the economy.

Senator Ben Murray Bruce argued the N305 to $1 projection as contained in the Medium Term Expenditure Framework (MTEF) would affect the actualization of the 2017 budget.

Minority leader, Godswill Akpabio, however, said that unless capital expenditure exceeds recurrent, the 2017 budget may end Nigeria in stagnation.

“The 2017 budget may end up as a budget of stagnation rather than a budget of recovery and growth,” Apkabio said.

“A huge chunk of the 2016 budget was left for external borrowing. As we speak, I don't think we were able to bring in one dollar to assist the 2016 budget. Therefore, we had to result to external borrowing.

“This means that for us to service the 2017 budget, we have to also borrow. Domestic borrowing will only help financial institutions, not the economy.

“Again, a large chunk of the 2017 budget proposal goes to servicing debts, payment of salaries and the cost of running governance. Capital allocation like in the last decade remains almost the same. We may not see much of infrastructural development which drives the economy," he added.

Similarly, former Senate leader, Ali Ndume said that the 2017 budget lacks details.

Ndume said the lack of details in budgets is responsible for the many abandoned projects in the country.

Senator Isah Hamma Misau called for oversights on all ministries, department and agencies to ensure effective implementation of the budget.

The committees on appropriation, finance and others will now begin the budget defense process from next week.

The 2017 appropriation bill was passed for second reading after a voice vote by Senate President Bukola Saraki.

Saraki further charged committees to ensure proper work on the document.

The Senate, therefore, adjourned plenary to Tuesday, February 21, for committee work on the 2017 budget.