The House of Representatives is responsible for determining which expenditures of the federal government budget are to be funded by internally generated revenue or loans.
The House adopted the 2021 national budget bill for a second reading on Thursday.
The bill seeks to regulate how the federal government and its ministries, departments and agencies plan their finances in each fiscal year.
It will also set deadlines for the tabling of the budget bill by the President, the examination and adoption of the budget by the National Assembly, and its promulgation of law.
The legislation is titled âA Bill for a Law regulating the Planning, Preparation, Adoption and Execution of the Federal Government Budget of Nigeria; and for related matters. ‘
According to the main debate presented by the sponsor, Abbas Tajudeen, of which our correspondent obtained a copy, the House would consider how annual budgets are financed.
The document read in part: âUntil recently, the revenue component of the annual budget has not been seriously considered. The President, addressing the National Assembly during the presentation of the annual budget, only refers to the estimated revenues for the purposes of financing the corresponding annual budget.
âTo the credit of the Buhari administration, which introduced the finance laws over the past two years, the finance laws enacted by the National Assembly appear to address issues of revenue generation to finance the budget. This bill complements the finance laws, which defines why and how certain budgetary allocations are financed, namely revenue accounts, borrowed resources, extra-budgetary mechanisms, contingency funds and special funds.
âThis bill defines the limits of deficit budgeting. It also sets out the limits and purpose of federal government borrowing and the circumstances under which MDAs can carry over unspent funds to the following year.
Tajudeen stressed that a stand-alone budget law that addresses the processes and procedures of the annual budget law “is the way forward”. Copyright PUNCH.
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