In a significant move, the Senate has decided to amend the Fiscal Responsibility Act of 2007, marking a pivotal development 16 years after its establishment. The decision stems from the Medium Term Expenditure Framework (MTEF) report, with the Senate focusing on strengthening and enhancing the Fiscal Responsibility Commission (FRC) through legislative amendments.
The FRC plays a vital role in monitoring fiscal policies and aligning them with achievable monetary policies. Addressing the ongoing 2023 budget defense and 2024 budget presentation in Abuja, Senator Muhammed Sani Musa, Chairman of the Senate Committee on Finance, emphasized the need for a thorough review of the Fiscal Responsibility Act of 2007. He highlighted the importance of addressing concerns related to the increasing national debt burden.
Senator Musa expressed the Senate’s commitment to creating a robust legal framework, ensuring compliance with laws governing sub-national governments. He stressed that sub-national governments must adhere to established guidelines, such as obtaining clearances and demonstrating compliance with the Fiscal Responsibility Commission before accessing overdrafts from banks.
The Senator assured the Fiscal Responsibility Commission of the Senate’s dedication to fostering a conducive working environment and acknowledged the positive impact of the Commission’s input on revenue generation.
During the presentation, Barrister Victor Muruako, Chairman of the Fiscal Responsibility Commission, appealed to the Senate Committee on Finance for continued support. He emphasized the crucial role of adequate funding in effectively implementing the Fiscal Responsibility Act and sought the Senate’s assistance in ensuring higher revenue remittances by ministries, directorates, and agencies. The Commission remains committed to its mandate and anticipates positive collaboration with the Senate to enhance fiscal responsibility and accountability.