The National Assembly has expressed worry over the 2024 budget’s notable disparity between capital and recurring spending, emphasizing the inadequate release of funding for capital projects in Ministries, Departments, and Agencies (MDAs).
The parliamentarians disclosed that the 2024 budget has only performed at a 43% overall level, with capital expenditures at a meagre 25% and recurring expenditures at 100%.
This was announced in a joint meeting of the Presidential Economic Team and the chairs of the Senate and House Appropriations Committees.
The chairmen of the Senate and House Committees, Senator Solomon Adeola and Hon. Abubakar Birchi, respectively, called for immediate action to boost capital project funding in a statement issued on Wednesday.
They emphasized that, in contrast to recurring expenditures that benefit a small percentage of the population, capital projects directly affect the majority of people.
Senator Adeola further argues that capital projects are essential for economic growth and public welfare, highlighting the need for immediate fund releases to prevent project abandonment and support the president’s Renewed Hope Agenda. He calls for a more balanced allocation of 60% for capital and 80% for recurrent expenditures.
In agreement with this stance, Hon. Birchi called on the government to put more money into vital infrastructure projects that benefit the general public, like roads, schools, dams, and hospitals, rather than debt repayment.
Minister of Finance Wale Edun addressed these worries by acknowledging the impending cash releases but cautioning against unsustainable spending patterns that have led to economic problems in other nations. He promised that as soon as money is available, warrants will be prepared for payment.
Key government representatives attended the meeting, which also covered the effect of tax vacations and waivers on government revenue and signalled a thorough examination of fiscal policies to improve budget performance.
