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Business News of Monday, 20 September 2021

Source: economicconfidential.com

No capital allocation for MDAs without revenue projectionsp - Senate

Nigeria Senate Nigeria Senate

The Senate has threatened to reject the capital and overhead proposals of federal ministries, departments and agencies which failed to accompany their 2022 budget estimates with revenue projections for the fiscal year.

The red chamber said only the personnel cost of erring agencies would be approved.

Heads and top officials of the various MDAs are expected to start appearing before the senate committees to defend their budget estimates as soon as the President, Major General Muhammadu Buhari (retd.), submit the document to the nation’s Parliament.

Our correspondent learnt that the President might likely present the 2022 appropriation bill as soon as the National Assembly approves the 2022-2024 Medium Term Expenditure and Fiscal Strategy Paper.

Both chambers would likely consider and pass the MTEF/FSP this week as the joint committees that worked on the fiscal document are expected to submit their reports this week for consideration.

The Chairman, Senate Committee on Finance, Senator Solomon Adeola, told our correspondent many of the MDAs might be denied allocations for capital expenditure and overhead if they failed to produce their revenue projections for the year.

He said all agencies of government, whether being fully, partially or not funded at all, were by law required to contribute to the Consolidated Revenue Fund.

He lamented that many of the heads of the MDAs had over the years converted federal agencies they are managing to their personal property.

He said, “Many revenue generating agencies spend what they generate and would argue that what accrues to them were not enough to carry out their functions, hence the need to augment it with whatever they generate.

“For every agency of government, it is expected that once they are coming to defend their budget estimates, there should be a corresponding revenue estimates that must contain what they are contributing to the budget.

“More than three-quarter of the revenue generating agencies believe that they should only come to the National Assembly to get their own share of the revenue from the federation account, and not what they should contribute to the national purse.

“Henceforth, once they are coming with their budget expenditure estimates, they must also bring their revenue estimates.

“We will like to see that in the budget this year because from the preliminary investigation by this committee, our findings are not palatable at all.”

He said that some agencies confessed that since their establishment, they had never been summoned to give their account of stewardship concerning revenue generation.