2017 Budget Suffers Setback as Senate suspends deliberations

•Summons Adeosun, Udo Udoma

Uncertainty has been the bane of 2017 budget, as senate suspends deliberation on it. There seems to be an ongoing war between the Senate and the Executive arm of government over the decision of the lawmakers to suspend consideration of the Medium Term Expenditure Framework (MTEF) and the Fiscal Strategy Paper (FSP), while requesting for the soft copies of the two documents from Ministers of Finance, and Budget and National Planning.

It will be recalled that the debate on the documents was earlier slated for last week Tuesday but was shifted to this week. The decision of the Senate has brought to a halt, further action on the 2017 budget. New Express gathered that the Senate has observed some loopholes in the documents submitted, hence it decided to summoned the Minister of Finance, Mrs. Kemi Adeosun and the Minister of Budget and National Planning, Senator Udoma Udo Udoma, to brief its leadership on the controversial areas discovered in the two documents.

A letter to this effect was issued on October 19, 2016, and signed by the Leader of the Senate, Senator Ali Ndume, requesting that Udoma must forward all the missing details in the two papers before the Senate begins its proper engagements and deliberations.

The Senate is requesting for the draft copy of the papers and asking the ministers to provide “All fiscal rates, taxes, charges used to derive the projected revenue in the 2017-2019 MTEF, a report on the structure/composition of the debt, funding, sources, how the borrowed funds are to be spent, as well as repayment plan and schedule.”

The letter further read: “Following the letter from His Excellency, President Muhammadu Buhari, dated 30 September 2016, forwarding the 2017-2019 MTEF and FSP, the Senate has begun work on the consideration of the document.

“Preliminary review suggests that the thrust of the 2017-2019 MTEF and FSP, which is to reflate the economy out of recession to a sustainable and inclusive growth path, is based on the aspirations of the present administration as is being articulated in the 2016-2019 Medium-Term Development Plan.

“In addition, it is envisaged that the reflation of the economy will be achieved through increased capital spending in target sectors, which will be financed through a stronger non-oil revenue drive as well as increased borrowings.

“To enable the Senate objectively review the MTEF from a holistic fiscal perspective, we deem it necessary to invite you to a meeting to brief the leadership of the Senate on Tuesday, 1st November, 2016, at the National Assembly by 2 p.m. You are requested to please send the following documents ahead of the meeting:

“The Medium-Term Development Plan (even a draft copy) upon which the 2017-2019 MTEF is founded; a comprehensive report on the implementation of the 2016 budget (as at third quarter, September 30); all fiscal rates, taxes, charges, etc., used to derive the projected revenue in the 2017-2019 MTEF; and a report on the structure/composition of the debt, funding sources, how the borrowed funds are to be spent as well as repayment plan and schedule.”

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