Robust Fiscal Policy Achievable with Executive-Legislative Partnership, Collaboration, Says Senate

*MDAs to defend MTEF-FSP this week

Sunday Aborisade in Abuja

The Chairman, Senate Committee on Finance, Senator Sani Musa, has said a genuine and deliberate collaboration between the legislature and the executive arms of government could produce a robust fiscal policy that would effectively address the economic challenges currently confronting Nigeria.
He said such collaboration would not only guarantee economic growth but also massive revenue generation.

Musa, explained this in a statement yesterday, amidst preparations by a joint committee of the Senate chaired by him, to engage heads of federal ministries, departments and agencies (MDAs) in rigorous interactive public hearings this week on the  2024-2026 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF-FSP).

The interactive sessions, being coordinated by the Senate Committees on Finance, also includes Committee on Appropriations; National Planning and Economic Affairs; and Local and Foreign Debts
The joint panel would scrutinise the fiscal document with the heads of MDAs and chief executives of government-owned organisations with a view to increasing the national revenue base and block leakages.

The federal government in the 2024-2026 MTEF-FSP, had pegged the price of crude oil at $73.96; exchange rate at N700/$; oil production at 1.78 million barrels per day; debt service of N8. 25 trillion; inflation at 21 per cent and GDP growth at 3.76 per cent.
The aggregate expenditure was estimated at N26.01 trillion for the 2024 budget which includes statutory transfers of N1.3trillion, non-debt recurrent expenditure of N10.26 trillion, debt service estimated at N8.25 trillion, as well as N7.78 trillion being provided for personnel and pension cost.

The approved MTEF-FSP would set out the parameters upon which the next year’s budget would be predicated.
Musa, who is the Chairman of the joint MTEF-FSP panel has sought the cooperation of the executive arm of government in his committee’s determination to ensure drastic increment in the nations revenues to meet the challenges confronting the nation.
He said, “In this endeavour, I call for unity and cooperation between the legislative and executive arms of government.
 “It is only through collaboration and consensus-building that we can develop fiscal policies that are robust, equitable, and conducive to sustainable economic growth.

“The challenges ahead are formidable, but our resolve is stronger. The MTEF-FSP 2024 — 2026 is not merely a collection of numbers and projections but a comprehensive strategy designed to steer our nation through the complex economic landscape that lies ahead.
“The document outlines projected revenue and expenditure expectations, fiscal policies, and macroeconomic assumptions thereby laying the foundation for our budgetary decisions and shaping the economic trajectory of our great nation.
“Therefore, it is our duty not only to scrutinise, but to ensure that the MTEF-FSP 2024-2026 aligns with the best interest of Nigerians whom we are all representing.

“It is vital to acknowledge the complex and challenging economic situation.
“In the light of this administration, this is the first MTEF-FSP to be considered at a time the economy is facing various economic hurdles.
“These includes fluctuating global oil prices, inflationary pressures, unemployment, general economic hardship partly attributed to fuel subsidy removal which has led to labour unrest and agitation for higher minimum wage.”
“It is in these challenging times that the need to increase our revenue sources especially from the non oil sector is paramount, while blocking leakages in the already existing revenue sources.

“Let us strive to reduce the deficit, effectively manage our debt, boost domestic revenue, invest in critical infrastructure, and promote job creation.
 “Our role as legislators in shaping the MTEF-FSP is not only a constitutional obligation but a moral imperative to our constituents who look to us for guidance and leadership in safeguarding their economic interests.”