FG: Delay in budget approval unacceptable

The Federal Government declared Monday that budgetary delay in a situation of national economic emergency and the hardship encountered by so many is wrong and unacceptable.

Vice President Yemi Osinbajo declared this in Abuja at the legislative economic summit themed "Legislative Framework for Economic Recovery and Sustainable Development".

He said delays in budget approval would prevent the flow of money into the economy and stall capital projects.

Osinbajo identified intractable delays in the budget approval process and the long procurement processes as major causes for the deepening of the recession.

The vice president said a developing country like Nigeria cannot cope with prolong wrangling by the executive and the legislature over the budget.

According to him, "if the budget process takes up to five months of the financial year and procurement is another three months, we have already ensured that the economy will be at a standstill for most of the year.

"The truth is that no developing economy can afford the luxury of prolonged executive/legislative wrangling over the budget. Developed economies with strong and independent private sectors may be able to cope, but Nigeria simply cannot.

"Neither the executive nor the legislature can excuse itself. It is wrong for us to hold up the budget for that long. The delays of course, will ensure that money will not flow into the economy, and that capital projects will not be done.

"Budgetary delay in a situation of national economic emergency, and the hardship encountered by so many, is simply wrong and unacceptable. Neither the executive nor the legislature can excuse itself. It is wrong for us to hold up the budget for that long. The delays of course, will ensure that money will not flow into the economy, and that capital projects will not be done."

Osinbajo said the focus on oil had given rise to a complete dependence by the federal government but more so the states on the monthly federal allocation.