OrderPaperToday – The House of Representatives has directed its committees on Finance and National Planning and Economic Development to partner with the executive arm on removing some Ministries, Departments and Agencies (MDAs) from the annual budget.
The committees are to partner specifically with the Ministry of Finance, Budget and Economic Planning and the Auditor General of the Federation to conduct a detailed analysis of all MDAs to determine those to be affected wholly or partially.
This was part of the recommendations of the House Committees on Finance and National Planning and Economic Development on the Medium Term Expenditure Framework (MTEF) adopted by the committee on supply.
The committee stated that the move will help reduce the deficit and equally help to free up resources for critical projects.
The committee prayed the House to “mandate the Committees on Finance and National Planning and Economic Development in partnership with the Ministry of Finance, Budget and National Planning and the Auditor General of the Federation to conduct a detailed analysis of all Ministries Departments and Agencies (MDAs)unded by the Federal Government of Nigeria Budget to identify more Agencies that need to be taken off the budget wholly or partially and those that need to be retained, to further reduce the deficit burden of the Federal budget and free up more resources for other critical projects.”
Speaking on the recommendation, James Faleke, chair of the finance committee, noted that revenue generating agencies are spending huge sums as cost of collection at the detriment of Nigerians.
“We should not be borrowing, revenue-generating agencies should bring their budget, which Ministry of Finance should be releasing to them monthly.
“Agencies like Federal Inland Revenue Service (FIRS) with, let’s say, 2000 staff has N100billion for salary, while NIMASA with 400 staff is having over N300billion.”
The House also directed the reduction of levy on luxurious vehicles to 20% from the original 35% and levy on commercial vehicles on buses and trunk from 35% to 15%.
According to the auto policy of the federal government, importation of vehicles attracts 35% duties and another 35% levy bringing total charges to 70%. With this directive, total charges on importation of vehicles will be 50% and 55% for commercial vehicles and luxurious vehicles respectively.
“On Auto Policy, the Committee recommends downward review of the levy imposed on Imported Vicles to 15% and 20% on both Commercial Vehicles (Buses and Trucks) and Luxury Vehicles respectively.”
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