NASS proposes signing of budget by December each year

7 years ago

NASS proposes signing of budget by December each year

Against the backdrop of budget delays, the National Assembly has identified 15 key reform strategies, including the adoption of a budget calendar which will begin with the submission of the Medium Term Expenditure Framework (MTEF) by the second week in July and end with the President signing the Appropriation Bill into law by third week of December every year.

In a statement released by Senate Media Office, it said the reform will include provision of laws on development plans by the Federal Government aimed at timely preparation of the budget and its efficient implementation.

The development follows a report submitted to the Senate President, Dr. Abubakar Bukola Saraki by the Senator Ali ?Ndume-led technical committee on the reforming the budget process in Nigeria.

“The proposed budget calendar that will ensure that the President assents to the appropriations law by third week of December while the Medium Term Expenditure Framework (MTEF) is submitted in the second week of July as the first step in the budget process.

“Part of the recommendations in the report submitted last Thursday include the proposed provision of a legal backing for national development plans, and enactment of organic budget law to fix a realistic budget calendar,” the statement said?.

According to the report, the broad strategies aimed at improving the budget process “revolve around reforming laws and frameworks for budget formulation, enactment, and implementation, aligning the budget process to international best practices, strengthening capacities, and institutions for budget formulation and implementation, and strengthening the revenue base for budget implementation.”

Some of the key reform strategies for budget preparation are:

* Alter Section 81(1) of the 1999 Constitution and amend Sections 11 and 14 of the Fiscal Responsibility Act (FRA) to provide for a fixed and realistic budget calendar by which the President will present the budget to tue National Assembly by the first week of September, considered and passed by by 30th November and assented to by the President by the second week of December.

* Provide legal backing for development plans to serve as basis for the annual budget and ensure continuity of development plans. In this regard, complete the legislative actions initiated for the enactment of laws: “Development Planing Act” and “Project Implementation and Continuity Act”, pending in NASS.

* Amend Sections 13-18 of the Fiscal Responsibility Act to link MTEF with a development plan. Then: have a long term (10-15 years) development plan to be implemented with three year MTEF and Medium-term Sector Strategy (MTSS). National Assembly to support the development plan with a resolution and ensure that the annual budget is linked to it.

* Amend the FRA to enlarge the list of stakeholders to be consulted during the budget preparation process. Then, there should be pre-budget consultation between the legislature and the executive as well as between the executive and the public. And during the budget defense by the MDAs before the Committees, relevant stakeholders should be invited.

* Enact an organic budget law that puts together all laws relating to the budget, including a fixed and realistic budget calendar and a pre-Budget Statement.

* Alter Section 162 of the Constitution recognize saving by the three tiers of government through the Federation Account and provide legal backing for Excess revenue savings to enable he country save revenue windfalls and stabilize government expenditure during fiscal crisis.