Critical Analysis of the Fiscal Responsibility Act of Nigeria 2007: an Overview

3786 Words Mar 18th, 2013 16 Pages
CRITICAL ANALYSIS OF THE FISCAL RESPONSIBILITY ACT OF NIGERIA 2007: AN OVERVIEW

BEING

ASSIGNMENT SUBMITTED ON PUBLIC FINANCE (BKF 624) (FIRST SEMESTER COURSE WORK)

BY

ALAJEKWU UDOKA BERNARD 2008 162 001

MSc PROGRAMME DEPARTMENT OF BANKING AND FINANCE FACULTY OF MANAGEMENT SCIENCE SCHOOL OF POSTGRADUATE STUDIES ANAMBRA STATE UNIVERSITY

LECTURER: DR. EZEABASILI V. N.

OCTOBER, 2009
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ABSTRACT Fiscal Responsibility Act 2007 was designed to regulate and supervise the fiscal activities of public office holders in the country. This paper critically analyses the effectiveness and efficiency of the implementation of the Act; the machinery for implementation; the powers and tenor of the members of the Fiscal Responsibility Board;
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The site maintained that the FRA is a fundamental action to attack fiscal inconsistency and indiscipline from the head to the root. It is noted that the Fiscal Responsibility Act (2007) “...aims to ensure fiscal accountability, check corruption, monitor the budget processes and call
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public officials to order...; it does not appear that there is one final act that should hopefully put the final nail on financial rascality in government (http://www.budgetmonitoring.org/Spotlights/2007/02/26/ News11618/).

Nwanma, Vincent, (2007) was of similar view when he asserted that “no-one expects that it (FRA) will end high-level corruption at a stroke”. According to then Anambra State Commissioner for Finance (2007), Eze Echesie, “I don’t think any single law can stem or stop fiscal rascality but we have tried to ensure the elements of consensus building in this bill”. Nath Nwabueze, a lecturer in finance at the Federal University of Technology, Owerri warned that the Fiscal Responsibility Act would not cure Nigeria’s problems of high-level corruption and poor budget planning unless it was properly enforced (Nwanma, Vincent, 2007). At worst, the Act will “commit chief executives at all tiers of government to a set of efficient rules for economic management by providing set standards for the planning and control of public expenditure instead of leaving it to the whim of either the president or state governors. The Act