Prof. Uche Uwaleke on Thursday advocated a comprehensive reform of all aspects of the nation budgetary process to mitigate the recurring poor budget implementation being experienced over the years in the country .
Uwaleke, a Professor of Capital Market and Head, Banking and Finance Department, Nasarawa State University Keffi made the call in an interview with the News Agency of Nigeria (NAN) in Abuja.
Uwaleke noted that the level of capital budget implementation in the country had been nothing to write home about.
He said: “To break this jinx, a comprehensive budget reform is required entailing the entire process of formulation, legislative approval and Presidential assent, execution and control.
“This should be codified in a budget law that clearly spells out the time lines for various budget activities including sanctions for any breach. “
He said poor budget implementation, especially with respect to the capital component, had become a major challenge to the country’s economic growth.
“A number of factors are responsible for this, including undue delays in the passage of the budget, the lengthy procurement process taking several months to conclude. “
The inhibiting factor, he said, was non release of funds in time as well as corrupt practices by officials of government.
“All these manifest in poorly executed projects, abandoned projects which litter across the country, costly projects as a result of frequent variations in contract price. “
According to him, government fiscal year as enshrined in the Constitution, from January to December, took into consideration seasonal factors.
“The delay in getting out the budget document, especially since the return to democratic rule in 1999, hampers the execution of infrastructure projects.
“These projects are sensitive to weather conditions as contractors suspend work whenever the rains become heavy.
“Also when money is not released on time or government officials take a large chunk of the contract fee as kickbacks, the contractor is constrained in delivering standard jobs.
He said the importance of speedy and full budget implementation could not be over emphasised for a country like Nigeria yearning for enabling infrastructure and human capital development.
The don said it was important for government to recognise the urgency of fast-tracking the implementation of the 2018 capital budget, given its late approval and assent.
“The National Assembly should cooperate with the executive in respect of any government borrowing programmes for capital projects provided for in the 2018 budget.“
He also called for an amendment of the Procurement Act to shorten the period of procurement process and also plug loopholes for abuses.
The lecturer said it was much more germane for the government to sustain the ongoing fight against corruption and accelerate public financial reforms.
“The Ministry of Finance should ensure that funds are released on time and together with the Ministry of Budget and National Planning, put in place appropriate mechanisms for monitoring and evaluation.“
Uwaleke noted that the issues concerning funding shortages could best be addressed through ramping up non-oil revenue and reducing the country vulnerability to oil shocks. (NAN)
