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THE ROLE OF CIVIL SOCIETY ORGANIZATIONS IN 2017 BUDGET
PRESENTATION AT NIGERIA UNION OF JOURNALIST (NUJ)
FEDERATED CHAPEL, KOGI STATE COUNCIL
On 19th January, 2017
By IDIRS MILIKI ABDUL
Executive Director, Centre for Human Rights and Conflict Resolution
Lokoja, Kogi State.
On a yearly basis, Nigerians look forward to the presentation of the budget estimates by the President or Governor to the National or State Assembly. Hopes and expectations of a new lease of life, improvements in the economy and living standards are raised by the presentation and the fabled speeches made by President or Governor on the occasion. Previous budgets have been named budgets of hope, growth, consolidation, transformation, new direction, etc. The extant 2017 Appropriation Bill awaiting approval by the National and some State Assembly is named a budget of recovery and growth. It recognises that Nigeria is in a recession, in dire straits and proposes measures the government believes will facilitate the end of the gloom and thereby transform it to economic growth and boom.
Over the years, the country has faced the challenge of value for money in public finance management. Budgetary provisions could not be reconciled with the policy thrusts announced by the President or Governor whilst the three key components of economy, efficiency and effectiveness were ignored in budgeting. Various dictionaries and Wikipedia have explained economy to be “a good business operation that minimises costs. Efficiency is the (often measurable) ability to avoid wasting materials, energy, efforts, money, and time in doing something or in producing a desired result. In a more general sense, it is the ability to do things well, successfully, and without waste. It signifies a level of performance that describes a process that uses the lowest amount of inputs to create the greatest amount of outputs. Effectiveness is the degree to which something is successful in producing a desired result; success”.
Nigeria’s budgetary provisions cannot qualify to be described in these glowing terms. Nigeria’s Federal and State Budgets therefore contained a high dose of frivolous, inappropriate, unclear and wasteful expenditure items. Some of the items, apart from being wasteful, were illegal and unconstitutional. In fact, some of the expenditure heads could not be reconciled with common sense as no man, woman, youth or adult will spend his personal money on any of those expenditure heads. But we continued with business as usual because the resources belonged to everyone and no one.
The state exists to attend to the needs and rights of the people through the social contract, people handed over responsibilities to the state symbolized by the government to guarantee law and order and generally to take actions that will facilitate development. From basic necessities of live, to more complex demands, rights compete and demand attention for respect, protection, promotion and fulfilment.
Every year, Nigerians hear billions of naira budgeted for ministries, parastatals and other agencies of government, but at the end of the year, people are always at a loss as to where the money was invested. Budgets that were described by the executive in laudatory terms usually result in the decrease in the standard of living for the average person. Accusations of selective implementation of budget, late release for capital votes and disregard for appropriation laws Act, have been the norm particularly in Kogi State.
2017 BUDGET IN KOGI STATE
Despite the huge resources accrued to this current government in the last one year, there is not much to show for such huge resources. The current government has refused to respect the appropriation act in the 2016 appropriation year. Ranging from the bailout, statutory allocation, internally generated revenue and the recent |Paris club refund. The current government in the state has received not less than N70Billion in 2016 and the budget performance is about 18% for capital expenditure, which is a monumental failure by any standard.
It was disturbing, that despite this huge inflow of resource to the state, particularly from the federal government, the present administration failed to prepare a supplementary budget and embarked on projects that were not captured in 2016 appropriation act, thus violating the Appropriation Act itself. This is a serious constitutional breach.
On the 2017 budget estimates which was presented to the Kogi State House of Assembly on the 22ndDecember 2016, the total estimate was put at over N174Billion, with a capital expenditure of about N116, 320,140.266 representing 66.53% and a recurrent expenditure of N58,531,404,254 (33.47%). While the total capital expenditure is commendable, if diligently implemented, we are however worried about the sources of financing this huge and unrealistic budget taking cognisance of the level of internally generated revenue in the state. We are also worried and wonder why the new government has not deemed it fit to create new revenue generating institutions and establishment, particularly in the mining sector, where Kogi State has a comparative advantage with 29 mineral deposited in commercial quantities, above any other state in the country.
Furthermore, there are no genuine efforts to develop the Marine transport sector to further generate revenue and employment for the teaming population of this great state. 25 years of Kogi State and despite the resolutions of the Kogi State house of Assembly calling on the State to establish a State-owned television station, that will also promote the culture of the people and generate revenue and employment, yet this administration does have any plan as contained in this 2017 budget to establish one.
It is disturbing that the government has estimated N24, 983,269,513, totalling 14% of the entire 2017 budget, to be SQUANDERED by the Government House, which is not a revenue generating institution. Also, the deputy governor’s would spend N884, 675,887; Head of Service Office will gulp N2, 563,857,059, Auditor general office N392, 018,549. The ALMIGHTY SSG office will take N3, 900,337,260. The most disturbing is the State Ministry of Finance Headquarters that will spend N8, 755,071,709. All these agencies that have taken the largest chuck of the budget are non generating agencies. Meanwhile, the Ministry of land, housing and urban development was not allocated a single naira for capital project. Then what is the Housing policy of this government? Also the Ministry of Science and Technology was not allocated a single naira for capital project in this scientific age.
Kogi State house of Assembly should endeavour to perform its constitutional obligations through genuine and active oversight function, as it is a constitutional matter to engage in duties ascribed to them by the law, without fear or favour or political consideration. This was done to put in place checks and balances. We urge the Assembly not to be carried away by the physical renovations of the Assembly complex, as the citizens are more concerned by the content and output of this institution, ranging from number of quality bill, motions adopted, sittings, quality of debates, and number of bills passed and accented to. We call on the Assembly to organize a public hearing for citizens input into this 2017 budget, before passage.
CIVIL SOCIETY ROLE
As an independent groups, ours is to scrutinise the content of the Budget and make informed opinion, recommending and monitoring of projects that is approved by the legislature. Writing constant reports and make pronouncement, during budget process. It is unfortunate that the Budget process in Kogi State does not include the Civil Society members, and that situation is acceptation, as we demand inclusive Budget Process in Kogi State.
Thank for the opportunity.
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