By Our Reporter
The National Assembly has expressed concern over the significant disparity between recurrent and capital expenditures in the 2024 budget, highlighting the inadequate release of funds for capital projects in Ministries, Departments, and Agencies (MDAs). This issue was raised during a joint session with the chairpersons of the Senate and House Committees on Appropriations and the Presidential Economic Team.
Lawmakers revealed that the 2024 budget has only achieved 43% performance overall, with recurrent expenditure fully executed at 100%, while capital expenditure stands at just 25%.
In a statement released on Wednesday, Senator Solomon Adeola and Honourable Abubakar Birchi, the chairpersons of the Senate and House Committees respectively, called for immediate action to boost funding for capital projects. They emphasized that such projects directly impact the majority of the population, unlike recurrent expenditures that benefit a small segment.
Senator Adeola proposed reducing the current allocation of 80% for recurrent expenditure to a more balanced 60% for recurrent and 40% for capital, stressing that capital projects are crucial for economic growth and public welfare. He warned that delays in funding could lead to project abandonment and undermine the president’s Renewed Hope Agenda.
Honourable Birchi echoed this sentiment, urging the government to prioritize funding for critical infrastructure projects, such as schools, roads, dams, and hospitals, which serve the broader population, instead of focusing on debt repayments.
In response, Minister of Finance Wale Edun acknowledged the delayed capital releases but cautioned against unsustainable spending practices, noting the economic challenges caused by such practices in other countries. He assured lawmakers that warrants for payment are ready once funds become available.
The session, attended by key government officials, also addressed the impact of tax waivers and holidays on government revenue, signaling an ongoing review of fiscal policies to improve budget performance.