The House of Representatives yesterday approved N126.414 billion as the 2016 budget for the Federal Inland Revenue Service (FIRS). This comprises of N484.7 billion and the projected four per cent cost of non-oil revenue is N143.904 billion.
From the approved budget, 55 billion is for personnel costs, while 40,693 billion is for overhead costs and 30,721 billion is for capital expenditure.
Details of the approved budget as presented by the Chairman of the House Committee on Finance, Hon. Babangida Ibrahim, show that under personnel costs, salary and wages would gulp N32,885,370,758 billion, allowances was allocated N22,114,629,242 billion, while travels and transport was allocated N3,800,000,000 billion and utilities N1,450,000,000 billion.
It will be recalled that rejected in November,the Senate rejected the 2016 budget of Federal Inland Revenue Service, FIRS, forwarded to it by the Executive for approval, citing questionable inclusion of capital projects which it declared had been a yearly ritual of revenue generating agencies of government.
It also warned Ministries, Departments and Agencies, MDAs, ahead of presentation and defence of 2017 budget, that the days of partially prepared budget were over, adding that it would no longer be business as usual.
The action of the upper Chamber came four months after President Muhammadu Buhari forwarded the 2016 budget of FIRS. Babatunde Fowler It would also be recalled that President Buhari forwarded the budget to the Senate on July 21, and was, thereafter, referred to the Finance Committee, led by Senator John Enoh, PDP, Cross River Central, for further legislative action on July 25, 2016.
Senate said it refused to pass the N146.16 billion budget of FIRS because of the shady exercise of the Committee on Finance. Presenting the report, Enoh said that the committee recommended that a total expenditure of N143.722 billion be approved for FIRS in 2016. But the Senate rejected the report of the committee due to the poor preparation of the document.
The Senate believes the report submitted for consideration supported the committee’s position that more oversight of the budget was necessary and that supporting budget justification information was sorely needed. Some senators were concerned that the FIRS budget submission was poorly compiled and, therefore, incomplete.
Giving a breakdown of the proposed FIRS budget for 2016 which was rejected, the Chairman, Senate Committee on Finance, Senator John Enoh had said: “The Federal Inland Revenue Service, FIRS, projected to collect tax revenues to the tune ofN4.082 trillion in 2016. This comprises of N484 billion oil revenue and N3.597 trillion non-oil revenues.
‘’The projected 4% cost of collection on non-oil revenue is N143,904,640,000 billion. The total projected available fund for 2016 budget is N146,165,108,293, comprising 4% cost of collection and N2,260,468,293, 20% of 2015 operating surplus.
“The summary of HRS proposed 2016 total expenditure is as follows: Personnel N64,491,130,526; overhead N46,363,000,000; capital N32 868 300 000; total expenditure N143,722,430,526.
The FIRS, established in 2007 by an Act of the National Assembly, is one of the federal government’s revenue generating agencies and its overall mandate is to collect taxes for the federation and enforce compliance with tax laws across the federation.