The Nigerian National Assembly has voiced significant concerns regarding the disproportionate allocation between recurrent and capital expenditure within the 2024 budget, pointing out the inadequate funding for capital projects across various government agencies.
Joint Session Highlights Budget Discrepancies
During a joint session with the Senate and House Committees on Appropriations alongside the Presidential Economic Team, it was revealed that the implementation of the 2024 budget has been lackluster, achieving only 43% of its targets. Specifically, while recurrent expenditure has been fully executed at 100%, capital expenditure languishes at just 25%.
Call for Urgent Action on Capital Funding
Senator Solomon Adeola and Honourable Abubakar Birchi, leading the Senate and House Appropriations Committees, respectively, have demanded swift action to boost capital project funding. They argue that capital projects directly benefit the majority of citizens, contrasting with recurrent expenditures which primarily serve a smaller segment of the population.
Proposals for Budget Rebalancing
Senator Adeola proposed adjusting the budget split from the current 80% recurrent to a more equitable 60% recurrent and 40% capital expenditure. This adjustment, he claims, is essential for fostering economic growth, improving public welfare, and ensuring the success of the president’s development agenda. He stressed the urgency of releasing funds to avoid project abandonment.
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Emphasis on Infrastructure Over Debt
Honourable Birchi supported this view, advocating for prioritizing investments in critical infrastructure like schools, roads, dams, and hospitals. He suggested that these should take precedence over debt repayments to better serve the public’s needs.
Government’s Response to Budget Concerns
Finance Minister Wale Edun responded to these criticisms by acknowledging the backlog in capital fund releases. He cautioned against adopting unsustainable financial practices seen in other nations, yet promised that the necessary financial authorizations are in place, ready to be enacted when funds are available.
Broader Fiscal Policy Review
The session also touched on broader fiscal issues like the effects of tax waivers and holidays on government revenue, suggesting a comprehensive reassessment of current fiscal strategies to improve budget execution and economic health.
