The Nigeria National Assembly has raised concerns over the significant imbalance between recurrent and capital expenditure in the 2024 budget.
According to lawmakers, the 2024 budget has achieved only 43% performance overall, with recurrent expenditure at 100% and capital expenditure at a mere 25%.
This revelation was made during a joint session involving the chairpersons of the Senate and House Committees on Appropriations and the Presidential Economic Team.
Lawmakers are calling for urgent measures to increase capital project funding, emphasizing that these projects have a direct impact on the majority of the population.
Senator Solomon Adeola and Honourable Abubakar Birchi, chairpersons of the Senate and House Committees respectively, argued that capital projects are vital for economic growth and public welfare. They urged the government to prioritize funding for essential infrastructure projects such as schools, roads, dams, and hospitals.
The Minister of Finance, Wale Edun, acknowledged the pending capital releases but warned against unsustainable spending practices. He assured that there are warrants ready for payment once funds become available.
The session also discussed the impact of waivers and tax holidays on government revenue, signaling a comprehensive review of fiscal policies to enhance budget performance.
It’s worth noting that the 2024 budget was initially proposed at N27.5 trillion by President Tinubu, but was later increased to N28.7 trillion by the Senate.
The National Assembly has also extended the implementation of the 2024 budget till June 2025.
