Group Politics Editor, Taiwo Adisa, takes a look at the renewed executive/legislature harmoring preceding the presentation of the 2012 budget.ON Monday, 10 October, President Goodluck Jonathan and the Minister of Finance, who is also the coordinating minister in charge of the economy, Dr (Mrs) Ngozi Okonjo-Iweala, met with the principal officers of the National Assembly, alongside chairmen of standing committees in the two chambers of the legislature. It was the first time such a meeting was being convened to discuss the framework for a proposed budget.Two letters, one from the office of the Chief of Staff to President Jonathan, Chief Mike Oghiadomhe, and the other from the office of the Special Adviser to the President on National Assembly Matters, Senator Joy Emordi, had intimated the Senate President, Senator David Mark, the Speaker, Honourable Aminu Tambuwal and chairmen of standing committees of the planned meeting which was to be addressed by Dr Okonjo-Iweala. The plan was to intimate the creme de la creme of the National Assembly with details of the 2012 to 2015 economic framework as contained in the Medium-Term Fiscal Framework (MTFF) and the Fiscal Strategy Paper (FSP) dated 22 September, but made public in the National Assembly on Tuesday, 4 October.President Jonathan had, in the document, indicated that the Federal Government plans to phase out fuel subsidy in the new year. The document, which gave details of government's income and expenditure profile for 2012 to 2015, also showed that while oil receipts are expected to be on steady rise in the period, the Federal Government was ready to remove fuel subsidy and plug same in what is called 'safety nets.'The document stated that the Federal Government was adopting an oil benchmark of $75 for the budget, while it expects oil production average for 2012 to terminate at 2.4 million barrels per day. The document also indicated that crude oil production is expected to stand at the average of 2.550 million, 2.575 million and 2.6 million for 2013, 2014 and 2015, respectively.According to the revenue framework of the government, a major component of the fiscal consolidation policy is the removal of fuel subsidy, beginning from 2012. The government expects to free up to N1.2 trillion in savings from the expected removal of subsidy.'A major component of the policy of fiscal consolidation is government's intent to phase out fuel subsidy beginning from the 2012 fiscal year. This will free up to about N1.2 trillion in savings, part of which can be deployed into providing safety nets for poor segments of the society to ameliorate the effects of subsidy removal.'The accrual to the Sovereign Wealth Fund (SWF), as a result of the withdrawal of the fuel subsidy, will also augment funds for critical infrastructure through the infrastructure window of the SWF,' the document read.According to the document, the Federal Government also intends to devalue the national currency by three naira as the currency is expected to drop from the current N150 to the dollar to N153 to the dollar in 2012.However, the government expects growth in the non-oil exports areas, as well as a consistent reduction in domestic debts.The MTFF and FSP were prepared by the Budget Office of the Federation, an arm of the Federal Ministry of Finance. The president said he was sending the document, dated 22 September and addressed to Senator Mark and Honourable Tambuwal, in fulfillment of the provisions of the Fiscal Responsibility Act.He said in the letter: 'l am pleased to forward herewith for your consideration the 2012-2015 Medium-Term Fiscal Frame work and Fiscal Strategy Paper and seize this opportunity to express my gratitude for the patriotism, cooperation and steady support of the leadership and all distinguished members of the Senate, in our collective to transform the economy of our dear country.'The 2012-2015 Medium-Term Fiscal Framework (MTFF) and Fiscal Strategy Paper (FSP) are statutory requirements for submission to the National Assembly under the Fiscal Responsibility Act, 2007. The MTFF consists of the Medium 'Term Revenue Framework and the Medium-Term Expenditure Framework, both of which outline principal components of the government's revenue and expenditure plan.'Prepared against the backdrop of global uncertainty, l firmly believe that the MTFF will ensure that planned spending is set at prudent and sustainable levels and is consistent with government's overall medium term development objectives set out in the Transformation Agenda of the administration. 'It is my hope that the National Assembly will approve the FSP and MTFF expeditiously, in order to bring the ongoing preparation of the 2012 budget to quick closure.'As expected, comments started flowing in the political scene immediately the president released the MTFF and FSP. Nigerians are particularly concerned about the decision to withdraw the contentious fuel subsidy, which they, contended, would impose more hardships on the people.The organised labour, opposition parties and civil society organisations immediately took positions against the planned fuel price hike.But apparently imbibing a new thinking in executive /legislative relations, the Presidency called a meeting for 10 October, when key stakeholders in the legislature were briefed on the indices that informed the medium term economic framework.At the meeting, attended by all committee chairmen in the Senate and the House of Representatives, including the presiding officers of the two chambers, the lawmakers practically went back to school, as the session turned out to feature more of questions and answers. President Jonathan presided, while Dr Okonjo-Iweala was the lecturer, who dished out details of the revenue framework and the facts behind the scenes. She insisted that the time has come for the nation to save more than it spends for the sake of future generation. The coordinating minister in charge of the economy faced a lot of questions from the lawmakers. Many of them wanted to know what informed the decision on subsidy. There were also questions on the belt-tightening policy as it affects all arms of government, with the lawmakers wanting to know how much of overhead cuts were imposed on the executive bodies, agencies and parastatals.It was also gathered that the minister of finance came under serious questioning from the senators and members of the House of Representatives over the abandonment of over 6,000 capital projects.It was gathered that the senators and Rep members refused to commit themselves to a decision on the fuel subsidy removal, opting to leave the decision to the floor of the two chambers.President Jonathan, who was said to have insisted on his plan to present the budget to a joint sitting of the National Assembly in November, said he prefers a strict adherence to a budget circle of January to December so as to monitor and curtail waste.Although the meeting did not come out with clear cut resolutions, as the lawmakers saw it as more of an avenue for consultation, it however provided a window of engagement between the executive and the legislature. Senate spokesman, Senator Enyinnaya Abaribe said that the lawmakers used the meeting to gain further insights into the government and that all the details laid on the table would inform the some of the decisions the lawmakers would take on certain policies.Senator Abaribe, who confirmed the meeting at the Presidential Villa, told newsmen in the Senate that the meeting was more of an interaction. He said that the meeting was not a decision making one, but an avenue to take the senators and members of the House through the parameters used in computing the budget.Senator Abaribe said: 'Chairmen from both the Senate and the House of Representatives met with Mr. President and we were briefed by Mrs. Okonjo-Iweala on what government expects to do in the next four years in terms of the budget and there was a lot of questions and we got also, the perspective on what the next budget revenue profile and the budget will be.'At the meeting, everything was explained. We were also glad that the president was there to moderate the meeting. It was a very frank discussion. It was also open. A lot of questions were asked and answers were givens. But it was just an interactive session; it was not a decision-making session.'We did talk about the budget arrival because they had already given us an indication earlier that the budget was going to come in November. Actually one significant thing is that the president expressed his desire for us to keep strictly to our budget circle of January to December, and then no longer take the budget beyond that.'Going by the experience in budgeting process in the democratic era so far, the initiative by President Jonathan cannot but be commended. The usual friction between the executive and the legislature has always been in the area of budgeting.While executive office holders often believe that it is their duty to propose budget estimates to the National Assembly, the lawmakers always believe that as the representatives of the people, they know the compelling projects in the constituencies and so could vary the decisions in line with their findings in their constituencies.The usual frictions had led to undue delays in budgets and failure to implement many approved budgets by the executive.With the early start of consultations, it is expected that the friction would thin out in the legislative process.
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