ICAN picks holes in 2013 budget

A leading professional body in the country, the Institute of Chartered Accountants of Nigeria (ICAN) has picked holes on some of the provisions in this year’s budget, as recently assented to by President Goodluck Jonathan.

In his welcome address at a symposium on 2013 Federal Government Budget organised by ICAN, in Lagos, on Tuesday, President of the Institute, Mr Adedoyin Owolabi, expressed reservations over the $79 per barrel benchmark; budget deficit of 1.85 per cent of the GDP, capital vote and other relevant provisions, stressing that the budget was packaged to crowd out private sector from access to credit.

According to Owolabi, with the current budget provisions, the propensity for growth would be impaired, stating that deliberate efforts should be deployed towards reducing cost of governance and shift emphasis to capital investments.

He wondered why the budget was subjected to political bickering by the executive and legislative arms for over two months, noting that such development was inimical to economic development.

While insisting that the budget should be scrupulously implemented, he posited that the implementation should be tied to the performance bond signed by the ministers and other public officers.

On the economy, the ICAN boss insisted that the so-called seven per cent growth has not impacted on the ordinary Nigerian, stating that there was still high level of joblessness, insecurity and dearth of infrastructure.

He called for the diversification of the economy, noting that many countries were now discovering oil, while the major buyers in the international market like the United States, China were now looking for alternatives.

In his goodwill message, Lagos State governor, Mr Babatunde Fashola, took ICAN to task over its role in the 2013 budget and the economy.
The governor, who was represented by the permanent secretary, Ministry of Finance, Mrs Olwaseyin Williams, inquired whether the institute had input in the budget and the implementation process.

“ICAN is a key interest group in the economy. It cannot keep conspiratorial silence on the state of economy; fiscal discipline Excess Crude Account (ECA); cashless policy and others. There is need for self examination. ICAN should be able to play proactive role in this regard,” he said.