The Nigerian Institute of Management has picked holes in the budgeting process of the Federal Government, saying it will be difficult for the citizens to feel the impact of budgeting if identified lapses are not urgently addressed.
Specifically, the institute faulted the "top-down" approach of budget preparation as against the "bottom-up" system, which it noted was more transparent and guaranteed inclusive economic growth.
The President and Chairman of Council, NIM, Dr. Michael Olawale-Cole, said these during an interview with our correspondent on the sidelines of a dinner organised in his honour by the Abuja chapter of the institute.
He said, "As an institute of management, we are not happy with the way budgeting is done in Nigeria. Budgeting should be from the bottom up. But what we have seen is that people at the top just arranged figures and pass it down for the people below.
"Budget should come from the sectors and different ministries based on what they want to do and the need of the people, and then, packaged upstairs from where they will now pick the ones they can do for that year and then seek approval from government.
"A situation where figures are just being put together for ministries and parastatals is not the best way to go."
Olawale-Cole also urged the Federal Government to have a systematic and effective way of implementing the budget, adding that the institute had made a presentation to the Federal Government on how to effectively manage its budget.
He said, "What we have done in our presentation is that government should learn to ask people to submit their proposals and these proposals should be based on the needs of the people.
"There is also the need to look at how the budget can be implemented in Nigeria, and that is the major problem we have. We have budget for capital and recurrent expenditure, but how much of that is being used?
"So, we are concerned that we are putting more emphasis on recurrent expenditure as against capital. It is only through capital project that you can achieve growth. You can't achieve growth in the economy by spending the bulk of your money on recurrent and leaving very little for capital. We think capital should take at least 60 per cent to 70 per cent, while recurrent should take just 30 per cent."
