Padding: Law needed to address budget issues -DG NILS

By; IYOKPO EGBODO, Abuja.
Director-General of the National Institute for Legislative Studies (NILS), Dr. Ladi Hamalai has stated that a budget reform bill is urgently required to address the challenges facing the nation’s budgeting process.
The D.G in an interactive chat with some journalists covering the National Assembly over the weekend, also argued that unless there is a high level of connivance, it was not easy for funds meant for the implementation of National Assembly members’ constituency intervention to be diverted, because of the audit tracking system required to obtain payment certifications.
While agreeing that the management of the annual budget, MTEF and development plans have been marred by inefficiency, ineffectiveness and lack of transparency, Hamalai said “it is imperative at this point in time to initiate the process of introducing reforms through legislations in the budget process”.
She also argued that unless there is a high level of connivance, it was not easy for funds meant for the implementation of National Assembly members’ constituency intervention to be diverted, because of the audit tracking system required to obtain certifications for payment.
She stressed that “it is imperative at this point in time to initiate the process of introducing reforms through legislations in the budget process”.
She said there is need for reforms in the budgeting process as obtained in other climes.
On the controversial “Budget Padding,” allegations currently rocking the House of Representatives, the D.G noted that claims that legislators can alter, reject or even rewrite the budget, owing largely to the powers conferred on them have been misconstrued by the members of the public.
“It is a misapprehension to maintain that the National Assembly has no power to alter budgetary estimates by the Executives,” she explained, adding that it is a practice utilized when submitting a budget for approval.
“It artificially inflates the proposed budget in order to give the project room to expand or to cover unexpected costs. This practice of providing a cushion in a budget in order to avoid an unfavourable variance at the end of the budget year is also called budgetary slack.
“Whereas some contend that inflating expenses to take expected inflation into account is responsible foresight, others see it as inappropriate or even criminal”, she submitted.