Late Budgeting And Nigeria’s Economy

Nigeria’s 2014 budget was finally signed
recently. Like many oth
ers before it, this year’s budget was signed into law by President Goodluck Jonathan nearly six months into the year after series of avoidable tussle between the executive and legislature.
The Presidential assent, coming one month after the passage of the budget by the National Assembly came even as a surprise to many, as the amount added to the estimate by the legislature was not only un-precedented but condemnable. Similarly, a legal practitioner went to court to question the right of the legislature to beef up the budget.
President Jonathan’s initial reluctance to sign the budget may not be unconnected with the raising of the oil benchmark from the proposed $74 to $77.50 per barrel; the jerking up of the budget figures by N53billion and the controversy over the constituency projects of the lawmakers.
While we recognise the right of the National Assembly to work on the budget, there was actually no need for power struggle between the arms of government. The apparent showmanship and the over-bearing influence of the National Assembly (NASS) on matters that are strictly technical such as the oil benchmark is unacceptable.
The culture of thwarting the actions of the Federal Government for no discernible reasons lately is becoming a matter for worry. Nigerians have elected a President and government is in place; to always oppose their programmes is a disrespect for Nigerians and the laws of the land.
This year’s budget particularly started on a wrong footing: The disagreement over crude oil benchmark between the two chambers of the National Assembly on the one hand, and a prolonged bickering between the Presidency and NASS over implementation of the 2013 budget.
Even when the two chambers agreed on the oil benchmark, the All Progressives Congress (APC) members were to resist work on the budget. Again, that took a toll on the management of the nation’s economy. This singular act made a laughing stock of Nigeria’s democracy and raised questions on patriotism.
The Tide is particularly saddened by the fact that the most oil dependent economy in the world, which Nigeria is, has learnt nothing from the effect of late budgeting over the years. Budget is a plan on how to allocate resources based on expected revenue. But even more, it provides the policy direction of government that the private sector also keys into. But to play politics with budget is to halt the economy.
The Tide wants the frequent executive-legislature imbroglio, over budget to stop if Nigeria must make the needed move towards development. Apart from the example from the developed economies, even the military that people so freely condemned made sure that budgets were ready first thing in the year.
To show how Nigerians feel  about this culture of late budgeting, the on-going National Conference suggested that late presentation of budget estimates should become an impeachable offence. Although, this is rather too harsh, it pre-supposes that the delay is caused by the executive, whereas the role of the legislature was glossed over.
In advanced democracies, late budgeting is a serious offence that goes with sanctions both against the executive and the legislature. While we agree that ours is a fledgling democracy, it will not also be out of place if the country adopts some sanctions against such budget offences.
It is against this backdrop that we urge the ongoing National Conference to come up with some measures against late budgeting, as well as penalties against any defaulting arm of government that overtly or covertly delays budget passage. Indeed, if the salaries and allowances of erring government officials are withheld on account of budget delay, the situation will change.
On the other hand, The Tide will want to know the judicial interpretation on the right of the National Assembly to increase budget estimates. This, we believe, will help reduce the muscle-flexing that has become an annual ritual between the executive and the legislature over the nation’s budget.