Senate committee questions high budget proposal of ministry of finance | Ripples Nigeria
Connect with us


Senate committee questions high budget proposal of ministry of finance



TSA records over N30trn turnover since inception – AGF

As the ministries, departments and agencies (MDAs) of the federal government defend their 2018 budgetary allocations and 2019 proposals at the National Assembly, the Senate Committee on Finance has quizzed the budget of the Federal Ministry of Finance.

Members of the committee noted that amid complaints of paucity of funds by other government institutions, the Ministry of Finance was making high budget for itself and some of its parastatal agencies in its 2019 budget proposals.

According to the Senate budget performance report for 2018, the ministry has so far recorded 76 per cent overall performance in terms of fund released in the outgoing fiscal year.

READ ALSO: Army launches exercise to end armed banditry, Insurgency

A breakdown of the figures, presented by the Minister of Finance, Zainab Ahmed, indicates that personnel cost has got cash backing of 89 per cent. She said that overhead cost got 62 per cent and capital allocation got 81 per cent.

The Office of the Accountant General of the Federation, which is under the ministry, has also enjoyed high releases in the outgoing fiscal year. Its report as presented by the Accountant General of the Federation, Ahmed Idris, released N4.386 billion as at March, representing 84 per cent of the N5.222 billion appropriated to it.

The Senate Committee on Finance, chaired by Sen. John Enoh, sought to know why the ministry released more money to itself while other MDAs were complaining of poor fuunding.

The lawmakers also drew attention to “poor utilisation” of the funds released to the ministry and parastatals in the year under review. For instance, the senators noted that whereas N667 million was released to the ministry for capital projects, only N209 million or 31 per cent had been utilised.

Similarly, the Pension Transitional Arrangement Directorate (PTAD) which got N192 million for capital projects, but only spent N11 million or six per cent.

Responding, the minister gave the total performance of the Federal Government’s 2018 budget. According to her, personnel budget recorded an average of 100 per cent due to “payment of salaries and pensions as and when due”.

“For overhead, out of 12 months we were only able to release eight months with the exception of some critical agencies like the National Youth Service Corps (NYSC) and the Unity Schools.

“We prioritised their releases so they had more than eight months, because of payment of corps members’ allowances in case of the NYSC, and feeding of prisoners for the prison service,” she said.

The minister added that some military agencies “performing critical functions that must not stop” also had more than eight months.

Blaming the partial releases on poor revenue generation, she said the average revenue performance at the close of 2018 was 55 per cent.

“Because of that, we were not able to fund the budget as we will have loved to, and therefore impossible to say some agencies’ budgets will get 100 per cent cash backing,” she added.

Join the conversation


Join the conversation



Latest Tech News

Copyright © 2021 Ripples Nigeria. All rights reserved.