2018 Budget: Senate panel flays FG over unrealistic projections in MTEF

The Senate Panel on Medium Term Expenditures Framework on Tuesday flayed the Executive over what it termed unrealistic projections in the 2018-2020 Medium Term Framework Expenditure presented to the National Assembly for consideration.
This was even as the Federal Government revised the 2017 MTEF two weeks after the budget presentation.
At the meeting with government officials on the MTEF, which the Minister of State for Budget and National Planning, Zainab Ahmed; the Director General of the Budget Office, Ben Akabueze, attended, members of the Committee were angry over the revenue projections of the Federal Government for 2018.
Trouble started immediately the government officials concluded their presentation on the revised MTEF and FSP.
The Chairman of the Panel, John Enoh, while reacting to the presentation of the Executive wondered how government could continue to make unrealistic projection considering what transpired in the 2017 Budget.
According to Enoh, having woefully failed in meeting its projection of N807 billion independent revenue in the N7.444 trillion 2017 Budget, still made similar projection for the 2018 Budget.
Also corroborating the remarks of the chairman on unrealistic projection, Senator Ibrahim Danbaba expressed dissatisfaction with continuous unrealistic revenue projections in its yearly budget proposals.
Danbaba said: “For example, on independent revenue projections alone, in 2017, only N155 billion have been realised out of the projected N807 billion, representing 74 per cent failure and yet as stated in the document, the same projection of N807 billion is made for independent revenue generation in the 2018 Budget estimates aside other unrealistic ones, including revenue from VAT where FG had recorded 47 per cent failure in the 2017 Budget, etc.
“These yearly unrealistic projections are clearly responsible for poor budget implementations on yearly basis and must be stopped in form of reviewing of the projections.”
Senator Adamu Ailero also condemned unrealistic revenue projections by the government officials.
Earlier in his presentation, Ahmed informed the panel on the revised of MTEF/FSP submitted for the National Assembly’s consideration.
In the new amendment, the Minister said there is slight amendment in the MTEF earlier presented to the National Assembly for consideration.
According to her, N710 billion to be generated from the restructuring of government’s equity in all the joint venture oil assets, N320 billion additional revenues from revision of terms to improve government take in the production sharing contracts, additional N60 billion from excise duties on cigarettes and alcohol, N305 billion as additional company Income Taxes expected to result from Voluntary Assets and Income Declaration Scheme, N100 billion from improvement by FIRS in the collection of Value Added Tax, N2.5 billion from special taxes on insurance of luxury cars, as well as surcharge on luxury goods and N250 billion provision as unspent balance carried forward from 2017.
“The fiscal deficit is now N2.05 trillion, down by over N940 billion, also pushing the debt/GDP ratio downward from 2.61 per cent to 1.77 per cent,” Ahmed said.
The new MTEF presented by the Minister reads: “When the FEC approved the MTEF/FSP, it constituted a committee, chaired by the Hon. Minister of Finance, which was tasked with identifying additional sources of about N1 trillion.
“The work of the committee necessitated a revision of the MTEF, which also formed the basis of the 2018 Budget proposal.
“This briefing note and accompanying submissions relate to the revised MTEF/FSP and MTFF, which are in alignment with the 2018 Executive budget proposal, and were part of the documents that accompanies the 2018 budget laid.”