The National Assembly has raised concerns over the significant imbalance between recurrent and capital expenditure in the 2024 budget, highlighting the insufficient release of funds for capital projects in Ministries, Departments, and Agencies (MDAs).
This was made known during a joint session involving the chairpersons of the Senate and House Committees on Appropriations and the Presidential Economic Team.
The lawmakers revealed that the 2024 budget has achieved only 43% performance overall, with recurrent expenditure at 100% and capital expenditure at a mere 25%.
According to a statement released on Wednesday, Senator Solomon Adeola and Honourable Abubakar Birchi, chairpersons of the Senate and House Committees respectively, called for urgent measures to increase capital project funding, emphasizing that these projects have a direct impact on the majority of the population, unlike recurrent expenditures which benefit only a small fraction.
Senator Adeola further advocates a reduction of the current 80% allocation for recurrent expenditure to a more balanced 60% for recurrent and 40% for capital, arguing that capital projects are vital for economic growth and public welfare, underscoring the need for immediate fund releases to prevent project abandonment and support the president’s Renewed Hope Agenda.
Honourable Birchi, who also echoed this position, urged the government to prioritize funding for essential infrastructure projects such as schools, roads, dams, and hospitals, which serve the broader population, rather than focusing on debt repayments.
Responding to these concerns, Minister of Finance Wale Edun acknowledged the pending capital releases but warned against unsustainable spending practices that have caused economic issues in other countries. He assured that there are warrants ready for payment once funds become available.
The session was attended by key government officials, also discussed the impact of waivers and tax holidays on government revenue, signaling a comprehensive review of fiscal policies to enhance budget performance.
