Beene expresses concern over supplementary appropriations

Beene expresses concern over supplementary appropriations
By Lambwe Kachali
Friday September 12, 2008 [04:00]

PARLIAMENTARY committee on estimates chairperson Godfrey Beene has expressed concern that supplementary appropriations have continued to surpass the original budget estimates. Presenting a report on the committee's observations during the second reading of the supplementary appropriation Bill, Beene who is also Itezhi-Tezhi UPND member of parliament, said the committee noted that a number of subheads had supplementary provisions above 1000 per cent of the original budget.

"For example, under the Ministry of Justice, Attorney General's chambers-legal consultancy programme, an amount of K1,000,000,000 was provided in the 2006 budget, but the vote received supplementary funding of over thirty billion kwacha K30,627,647,956, amounting to over 3000 per cent of the initial provision. Similarly, the Ministry of Foreign Affairs, Paris mission had slightly over seven hundred and sixteen million K716,581,394 as budgetary estimate for office administration but received well over thirteen billion K13,237,374,659, or over 1,800 per cent of the provision, as supplementary provision to finance the procurement of a residence," Beene disclosed.

"Another example was the Ministry of Agriculture and Cooperatives which had a budgetary provision of fifty billion kwacha K50,000,000,000 to be remitted as a grant to the Food Reserve Agency FRA under the Agribusiness and Marketing Department, but received well over seventy six billion kwacha K76,262,394,482 as supplementary funding, which amounted to over 150 per cent of the original estimate."

Beene said such a situation where the actual budget deviates from the original estimates was indicative of a serious problem in the planning and budgeting system, and rendered the entire budgeting process redundant.

"Notwithstanding this, there is a reduction in the total amount of supplementary budget for 2006, K331,143,234, 891 as compared to that incurred in 2005 which was K453,584,031,243. Nevertheless, the amount is still unacceptable," he said.

Beene cited low ceilings imposed by the Ministry of Finance at the time of budgeting as well as poor forecasting of revenues by the ministry as major causes of such problems for the routine activities.

"In light of this, a limit be set on the amount of expenditure that can be incurred under any specific head of expenditure in any given financial year to encourage more careful planning by all spending agencies as well as better revenue forecasting by the Ministry of Finance. It is sometimes unavoidable to have such disparities, your committee strongly believes that this should be in exceptional cases and unforeseen circumstances which cannot be foreseen at the time of budgeting," he said.

Beene urged the finance minister Ng'andu Magande to set ceilings for spending agencies during the budgeting process.

He said it was sad that because of the inconsistencies in the legal framework, supplementary expenditure occurred before Parliament's approval.

"This undermines democratic accountability and Parliament's role in the budget process. The supplementary budget may be perceived to be a method of financing activities over and above what Parliament had approved, thereby derogating from the power of Parliament to deliberate and approve all public expenditure," he said.

Beene also said most controlling officers did not have the knowledge to understand and appreciate the provisions in the constitution as well as financial regulations.

"As long as the controlling officers are not conversant with the regulatory framework, the management of public finance is seriously compromised," said Beene.

And Magande said the Bill was intended to account for supplementary expenditure of monies appropriated for the services of the Republic as provided for under Article 117 (4) (b) of the Constitution of Zambia.

The Bill then went through the second reading and was expected to pass through the committee stage yesterday.