The appropriation bill for an Act to authorise the consolidated revenue fund of the N10.33 trillion for 2020 budget has passed second reading in Senate.
The Senate was on Tuesday forced to adjourn plenary for two weeks to pave the way for budget defense by ministries, departments and agencies (MDAs). It will resume sitting on October 29.
Senate President Ahmad Lawan who announced the adjournment at the end of Senate plenary said the essence was to hasten the passage of the budget to revert to January-December budget cycle.
Lawan revealed that budget defense by MDAs shall commence on Wednesday, 16 October and last till October 30.
According to the Senate President, any head of MDA that fails to appear before the NASS committees on the assigned date should not come again and at such, consider its budget not defended.
Stating further, Lawan announced that from 6 – 21 November, the joint committees of both Chambers will meet to harmonise the budget report for onward passage.
Buhari had, a week ago, presented a 2020 budget of N10.33 trillion to a joint session National Assembly.
He announced an increase in VAT to 7%, an estimated GDP of 2.93%, and N8.155 trillion revenue generation, as well as a debt Service of N2.45 trillion, among others.
But the lawmakers questioned the peremeters and fiscal assumptions set by the President in the 2020 budget and said it was not sustainable.
Specifically, the Senators querried the 2.93% GDP expected to be driven largely by non-oil output, as economic diversification accelerates, said it is unrealistic.
Also questioned in the estimates was the increase in VAT from 5% to 7.5%. The Senators equally faulted the debt service in the 2020 budget which is estimated at N2.45 trillion, said it will throw the country into increased borrowing.
On revenue, the lawmakers said the N8.155 trillion projected by Buhari cannot be realised in 2020 fiscal year.
Solomon Ayado, Abuja
