Late budget signing creates shocks in economy – Don

Prof. Evans Osabouhien, a Senior Economist at the Covenant University, Sango-Ota, Ogun has decried the late passage and signing of the budget into Law as unfortunate and capable of creating shocks in the economy.

Osabouhien made this known to newsmen in Lagos that it was completely out of fashion to sign a budget that should be running from January to December in the middle of the year.

According to him, countries that are willing to grow and compete favourably among their peers sign their budgets early to run full term.

The don explained that the late passage of the budget had created shocks in the economy, thus slowing the wheel of economic progress.

He explained that passing the budget in the middle of the year would affect the performance of Ministries, Departments and Agencies (MDAs) of government.

The Economist urged the Presidency and the National Assembly to always give the passage of the budget priority in the overall interest of the nation.

President assented to the 2018 Appropriation Bill on Wednesday.
In his remarks, President Mohammadu Buhari thanked the Senate President and the Speaker of the House of Representatives, as well as all the lawmakers for passing the 2018 Appropriation Bill.

“When I submitted the 2018 Budget proposals to the National Assembly on 7th November 2017, I had hoped that the usual legislative review process would be quick, so as to move Nigeria towards a predictable January-December financial year,” Buhari said.

The President said he was determined to continue to work with the National Assembly to improve the budgeting process and restore Nigeria to the January-December fiscal cycle.

He explained that the Federal Government’s budget represented less than 10 per cent of the aggregate yearly expenditures in the economy.

He added that the budge had “a very significant accelerator effect” on the financial plans of other tiers of government, as well as the private sector which mostly operates on a January-December financial year.