Delayed Budget Blues: Matters Arising

By Kayode Odunaro

WHEN President Umaru Yar’Adua presented the 2008 Appropriation Bill (2008 Budget) to the National Assembly (NASS) early November 2007, there was much expectation of quick passage of the Bill into law. The expectation was premised on the cordial relationship between the executive and the legislature since the beginning of the new administration on 29 May, 2007. Also, the National Assembly made promises of early passage of the Bill into law with the House of Representatives under the newly-elected leadership, Hon. Dimeji Bankole, denying itself some of the goodies of the yuletide. But nothing of such happened; rather, the 2008 budget was over three months late in coming into effect. It was only signed into law on April 14. Not only was its coming into effect as law late, it also threw up issues that one felt the public should be educated on as it affects our democracy as well as ensuring overall development of our people.

How did we get to a stage that a hitherto cordial relations between the executive and the legislature almost degenerated into confrontation on the issues of the budget? On a personal note, the delayed budget has affected this public officer in a big way. There was no official accommodation, official car and other prerequisites of the office. And for three months, no compensation or alternative arrangements were in the offing. But what were the issues that led to the delay in passage of the budget? One notes that shortly before the passage of the budget, attempts were made to put the blame for the delayed budget on the National Assembly and quite regrettably, some columnists and other opinion moulders and stakeholders have latched on the unofficially adduced reasons from the ‘sources’ within the executive to disparage the National Assembly. Some have gone as far as attributing selfish reasons for the ‘recalcitrance’ of the National Assembly in not kow-towing to the executive’s blueprint. This is quite regrettable as that position only reflects a lack of understanding of the principle of separation of powers and should be seen as a hangover from our best forgotten military dictatorship era where the executive waxed lyrical and strong at the expense of the other democratic institutions.

To start with, the 1999 Constitution that guides our democracy specifically rests the power of Appropriation with the National Assembly. Sections 80-82 are very clear on this and the part to be played by the executive in the process of enacting an Appropriation Act is entrenched. The executive presents “estimates of revenues and expenditure” in form of a bill to legislature for passage into an Act. In a layman’s understanding, estimates are projections that are not static and the appropriating body realistically (theoretically) has the powers to vary estimates positively or negatively. In exercising its constitutionally vested role, the National Assembly increased the Budget of N2.4 trillion presented by the President to N2.9 trillion. That and other issues led to the initial disagreement as the passed budget by NASS was returned to them with some “observations” bordering on the increase and “clauses” aimed at monitoring and tracking the budget. Was NASS justified in increasing the budget? Was the increase selfish as some are saying? The major increases were in the estimates of Ministries, Departments and Agencies, MDAs for more projects as well as constituency projects and recurrent expenditure for National Assembly.

Well, it is usual for MDAs in their budget defence preparatory to passage of an Act to ask for increases in funding for projects which are sited in various constituencies of members of NASS. And as true representatives, it is expected that such requests are acceded to by an appropriating body. Similar argument goes for constituency projects which, quite contrary to the belief of many uninformed, are to be executed by the executive and not NASS. NASS role is only to identify and make appropriation for needed projects which are mostly Millennium Development Goals (MDGs) projects (health, education, water, etc). The supporting argument against increases in the estimates is the problem of deficit. Proponents have wondered aloud where the money to finance these increases is going to come from and the fact that the end-result would be huge deficit. Quite right, but deficit as most economists will agree, is not in itself a bad thing. It is the end to which it is incurred that determines its desirability or otherwise. It must be noted that most developed economies run on huge deficits yearly. If, for instance, we incur huge deficit in fixing our roads or power sector, the negative effects can be ameliorated by the gains of these sectors over time. Of course, as we all know, our overall economic outlook would have been positively different today if huge funds appropriated for the power sector reforms were deficit budget that have been well utilised.

Odunaro is Special Adviser (Communications) to the Hon. Speaker, House of Representatives)

Who Will Rescue The Naira?
By Kayode Akinjare

IN the contemporary Nigerian society, there are millions that are often ready to boast of their trips of the world’s advanced countries . But it appears that the more educated and exposed our people are, the more rotten and unrefined our society gets. Most of the high ranking government officials are ostentatious and dandy when they travel out of the country on official visits, pretending as if all is well with their country back at home. Meanwhile, the country has continued to sink from all manners of indignities, most of which are generated by its citizens. The manner Nigerians have been treating the country’s currency is a case in point.

Despite all the efforts of the government to make our money look decent, the people have continued to impede that effort. Early last year, the Nigerian currency got a new look, both in size and texture, and everyone was pleased. The notes were crispy with improvement made on their portability. The coins were not left out, they all came out in a new dimension. But barely a year after the launch of the new notes which ought to have ended the era of dirty and poisonous notes, the story remains unchanged as the new notes are being roundly abused and indecently handled. Many of the supposed new notes have become as tattered as a madman’s robe, giving off obnoxious smell whenever you bring them out of your pocket or wallet while the coins too have become an awful medium of exchange. Even road side beggars flinch at your philanthropic gesture when you throw these coins at them.

Instances of Naira abuse are all over the place. There is the story of a set of twins at the University of Lagos who printed their birthday invitation cards on fake Naira notes. In Lagos, under the Ikeja Bridge, where many ladies get their hair fixed, it is disheartening to see ladies using the naira to fix their artificial nails. This is sheer contempt for the country and a disgraceful attitude towards its currency. How could people be so callous as to descend to such a disgusting and ignoble level? All denominations have been subjected to such abuses except the N20 note because of its flexibility. No matter how new and inviting a Naira note may be, once the endless transaction lands it in the contemptuous hands of a bus conductor or a taxi driver, you can expect nothing less than a battered note looking tattered from poor handling, although it might have spent just a few hours in circulation. Our commercial vehicle operators must have an attitudinal change towards the Naira.

They are very prominent in the league of Naira destroyers. They fold and squeeze it indiscriminately as if it is an handkerchief. They are uncaring and oblivious of what they are doing to these things (i.e. the nation’s currency) that constitute the face of Nigeria. This may, to an extent, be traced to their low level of literacy, many would say. But it becomes so annoying when one sees educated men and women in the same habit. Many members of the elite believe that all forms of calculations are best made on the note; they write notes on it, add and subtract their mathematical sums. Even those expected to know better are even caught in the act. What a shame! It’s high time the government woke up from its sleep knowing for sure that if this ugly situation keeps prevailing in our society, that means the state is too weak to get what it wants from the citizenry and more disasters would be on the way. Some tough policies should be put in place to prevent further depredation of our currency.

Akinjare is an IT student with Saturday Tribune