The House of Representatives on Monday expressed grave concern over the undue increase in the personnel component of Ministries, Departments and Agencies from N4.1 trillion in the 2023 Appropriation Act to N4.79 trillion, leaving a difference of N621 billion proposed in 2024 Budget estimates.
Chairman, House Committee on Appropriations, Hon. Abubakar Bichi, expressed the concern in Abuja.
Bichi spoke during an interactive session with the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, on the 2023 Budget performance and 2024 Budget defence.
Other lawmakers who spoke during the session demanded for statistics of crude oil production and sales as well as implementation of the Steve Oronsanye report on civil service reforms with a view to cutting down the high cost of governance.
Hon. Bichi, who called for a review of the recurrent expenditure, said: “As you are all aware, the sum of N27 trillion has been earmarked for 2024 budget and N27 trillion may look very big but considering the inflation, exchange rate and all of that, we believe that we really have to look into it to support Mr. President to achieve his eight-point agenda.
“No matter how Mr. President has to actualise this agenda, he needs some funds and the only way for him to get the money is through all these GOEs, and to see how we can interact with them and how we can have more funding to support Mr. President to actualise his dreams.
“That’s the reason we said, let’s call all the GOEs and honourable Minister of Finance to see how we can move, how we can get more revenue to support Mr. President to actualise his dreams for Nigeria.
“We believe the budget is perfect and brilliant budget but without funds it’s going to be a serious problem.
“So, we need to find a way to increase the funds.”
Speaking on the observed increase in recurrent expenditure for the years 2023 and 2024, Hon. Bichi said: “This document of 2024 budget, we have studied this document very very carefully.and very well.
“We also studied 2023 as well.
“There are some questions I want to ask on personnel per MDA.
“In 2023, the amount budgeted personnel for MDAs is N4.139 trillion and from the data that we have, from January to September, N3.1 trillion has been released.
“If you add 3.9 divided by 9, and want to project from September to December, the actual is going to be N4.1 trillion.
“So what was budgeted was N4.1 trillion.
“We don’t have any cause to raise the alarm.
“But personnel for GOEs in 2023, it’s N912 billion budgeted, actual releases is N684 billion from January to September based on the information we have.
“And our projection from January to December is N603 billion so the difference is N309 billion from January to December.
“That’s number one.
“Number two, overhead for MDAs, amount budgeted is N785 billion and actual release from January to September is N240 billion, our projection from January to December is N320 billion, so that means a difference of N465 billion because what was budgeted is N785 and actual payment is N320.
“Then overhead of GOEs as well.
“Budgeted is N671 billion, actual release is N294 billion, our projection from January to December is N392 billion, the difference is N279 billion.
“So, if you add everything here, you have a lot of money.
“So are we saying we over-budgeted?
“Number two, in the 2024 budget, the personnel of MDAs is N4.79 trillion, while in 2023, it’s N4.1 trillion.
“So the difference is N651 billion from 2023 to 2024.
“So, the difference honestly is wide enough to ask why.
“Because when we have almost N2.06 trillion in your deficit, that means we over-budgeted the money for recurrent or what?
“We need more light on that.”
While responding to various questions from the lawmakers, Edun explained that the 2024 budget estimates seek to “include a reduction of the fiscal deficits from 6.1 percent to 3.88 percent and likewise an increase in the capital share of the budget.
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“Government revenue as a percentage of GDP is still under 10 percent compared to the average for the African countries, which is nearer 15 to 18 percent, and in some cases is even over 25 percent.
“Clearly the government does not have enough revenue to fund the critical infrastructure.”
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