2022 budget performance will determine 2023 Appropriations, fiscal deficit —Hon Kalu

THE leadership of the House of Representatives on Saturday disclosed that the budget performance of various Ministries, Departments and Agencies (MDAs) for 2022 fiscal year worth N17.32 trillion approved by the Parliament, will determine its decision for upward review of the N20.51 trillion budget proposal as well as N10.78 trillion fiscal deficit for 2023 fiscal year or not.

Chairman, House Committee on Media and Public Affairs, Hon. Benjamin Kalu stated this during an exclusive interview with Tribune Online, confirmed that the 2023 budget defence will commence on Monday, October 24, 2022. 

Tribune Online gathered that the House Committee on Appropriations chaired by Hon. Muktar Betara will hold its inaugural meeting on the 2023 budget with a view to set machineries in motion for the engagement of Ministers and heads of various Ministries, Departments and Agencies (MDAs). 

In the same vein, the House Committee on Finance chaired by Hon. James Faleke is expected to meet the Minister of Finance, Budget and National Planning, Dr Zainab Ahmed; Accountant General of the Federation, as well as Director General of Budget Office of the Federation, Dr Ben Akabueze. 

Also invited are: Managing Director of Nigeria Sovereign Investment Authority (NSIA), Chairman, Revenue Mobilization and Fiscal Responsibility Commission (RMAFC); Fiscal Responsibility Commission (FRC) and Nigeria Bulk Electricity Commission (NBET). Hon. Kalu also reiterated the House resolve towards ensuring that the implementation of local content principle in the oil and gas sector is actualized in the 2023 fiscal year. 

He said: “We are interested in experimenting the local content principles that we have brought into the oil and gas sector which is critical to the state of the nation’s economy. That way we will be able to look out for what we produce so that we eat what we produce. That is one of those things that we would be looking out for in this budget to reflate our economy. 

“If borrowing will reflate our economy, we will support it. But I think it’s not all about the borrowing, America is borrowing, UK is in debt, most countries in the world they are indebted. It’s just about what are you spending the money you are borrowing for. That is what the National Assembly will be looking at. 

“But for now, we cannot say what will be done until we see their performance report and then we will take it up from there,” he noted. 

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While responding to question bothering on a pre-engagement meeting between the Executive and Legislature before the laying of the 2023 budget proposal, the House Spokesman said: “the only level of engagement can only be through MTEF. We don’t sit with them; the budget was presented by the President who is the head of the Executive. 

“We cannot sit with Mr. President. It’s against the principle and doctrine of separation of powers, which ordinarily is his constitutional mandate to do. So, we allow them to do that and pass the ball to our court as allowed by the mandate of the constitution for us to be able to review what the Executive submitted because we have the power of the purse. 

“So, we will exercise the power of the purse to the extent that it will be in line with the NEEDS analysis of the nation and also to reflate the economy.” 

He added that the Parliament during the scrutiny of the 2023 budget proposal, the National Assembly will consider the impact of the global warming on the country, as it relates to the ravaging flooding which has displaced millions of Nigerians and killed thousands of the citizens across the country. While giving update on the 2022 budget implementation, President Muhammadu Buhari had during the presentation of the 2023 budget proposal to the joint session of the National Assembly disclosed that the “sum of N8.29 trillion had been spent by July 31, 2022, out of the total appropriation of N17.32 trillion. 

“Despite our revenue challenges, we have consistently met our debt service commitments. Staff salaries and statutory transfers have also been paid as and when due. 

“Total non-debt recurrent expenditure in January to July 2002 was N3.24 trillion, of which N2.87 trillion was for Salaries, Pensions and Overheads. A total of N3.09 trillion was spent on debt service obli- gations during the period. 

“Furthermore, about N1.48 trillion had been released to MDAs for capital expenditure as at the end of July 2022. I am pleased to inform you that we expect to fund MDAs’ capital budget fully by the end of the fiscal year 2022.” 

According to Mr President, “As at the end of July 2022, the fiscal operations of the Federal Government resulted in an estimated budget deficit of N4.63 trillion. This represents 63 per cent of the estimated deficit for the full year. This is largely attributable to revenue shortfalls and higher debt service obligations resulting from rising debt levels and interest rates. 

“The deficit was mainly financed through domestic borrowing amounting to N4.12 trillion. Hence, total public debt stock increased from N39.6 trillion as at the end of December 2021 to N42.8 trillion as at the end of June, 2022.”