Why Senate plans to stop MDAs frivolous spending

The Senate has stated its commitment to amend the Fiscal Responsibility Act this year. The Chairman, Senate Committee on Finance, Senator Solomon Adeola, stated this on Monday at an investigative hearing undertaken by his panel with federal ministries and agencies.

Officials of the National Metallurgical Development Centre and those of the Federal Government Staff Housing Loans Board appeared before the panel on Monday. Adeola said the amendments would curb frivolous spending of gross incomes and operational surpluses allegedly being made by many of the revenues generating agencies of government.

Adeola insisted that the Fiscal Responsibility Act must be amended to curb wastages by most of the government ministries, departments and agencies. This, he explained, would help in boosting revenues of government and financing of yearly budgets with less deficit margin and external borrowings.

He said, “The committee is looking forward to the upcoming amendment of Fiscal Responsibility Act before us to jerk up government revenue. The idea of 80 per cent operational surplus is obsolete. “The government has proposed 25 per cent, but we are proposing 60 per cent of your gross income to be deducted at source.