Tax revenue is included for comparison. If you have a bank account, that is your asset, but to the bank, it's a liability, a 'debt.' Supplier Arrangements / Government Contracts. Other recoveries are: vii. Also, durable consumption expenditure by households will decline because some of it is financed by borrowing. This is a list of countries by government spending as a percentage of gross domestic product (GDP) for the listed countries, according to the 2014 Index of Economic Freedom[29] by The Heritage Foundation and The Wall Street Journal. Attachments area, Ikenna Ugondu: Enugu Governorship to rotate or not, Fredrick Nwabufo: Eviction orders here and there will make us refugees in our own country, Samuel Okolie: Certificate of Occupancy – What every land owner needs to know, Samuel Okolie: The illegality of police involvement in civil dispute: a serious cause for, Samuel Okolie: Things to do when confronted with police brutality. An estimated 8,000,000 people lost their homes in that debacle. [3] Changes in government spending is a major component of fiscal policy used to stabilize the macroeconomic business cycle. [4], John Maynard Keynes was one of the first economists to advocate for government deficit spending as part of the fiscal policy response to an economic contraction. b) ALLEGATION: “That you Mr. Ibrahim Lamorde, conspired with some EFCC officers to transfer a lower amount of N3,128,230,294:83 to the Government of Bayelsa State on 18/1/2010 instead of N4,257,503,009:23 being proceeds from the recoveries from DSP Alamieyeseigha”. When Governments choose to borrow money, they have to pay interest on the money borrowed which can lead to government debt. Research Australia[20] found 91% of Australians think 'improving hospitals and the health system' should be the Australian Government's first spending priority. AN ACT MODERNIZING THE CUSTOMS AND TARIFF ADMINISTRATION. The process of the disposal of his forfeited asset also commenced same year following his conviction as it could not have been possible to dispose his assets in 2006 before conviction in July 2007 (as alleged by George Uboh)! Recall that the hierarchy of the Nigerian Army had cautioned Gumi and other “opinion merchants” in Nigeria against their utterances and not to drag it into disrepute. However, the rights group said the failure of the Army to “act decisively to protect the integrity of both military institutions and the war on terror from the persistent treasonous actions and spoken words of Sheikh Gumi, shows that in Nigeria the law is a respecter of certain persons because of their religion and ethnicity.”. [15]The table below shows the top 10 countries with the largest military expenditures as of 2015, the most recent year with publicly available data. Nigeria’s justice minister signed an agreement on Tuesday with the UK high commissioner in Nigeria’s capital, Abuja, to return the recovered funds. Life science crowding in contrasts with crowding out in public funding of research more widely:[22] "10% increase in government R&D funding reduced private R&D expenditure by 3%...In Australia, the average cost of public funds is estimated to be $1.20 and $1.30 for each dollar raised (Robson, 2005). REPUBLIC ACT NO. Pesal Nig. Government spending can be a useful economic policy tool for governments. Infrastructure spending is considered government investment because it will usually save money in the long run, and thereby reduce the net present value of government liabilities. Suppliers usually reserve special rates for business owners who can show official evidence of business name or company registration (certificate of incorporation) issued by the Corporate Affairs Commission (CAC). In an article published 8 years back in The Guardian of London the Delta State former governor James Ibori, was described as a ‘petty thief’ who eventually became one of Nigeria’s richest men, has received a 13-year jail sentence after admitting fraud of nearly £50m, described by the judge as probably “ludicrously low”. [31], "Public Purse" and "Public money" redirect here. History demonstrates this conclusion is realistic, too. The Guardian of London reports that the UK government has faced criticism for not doing enough to prevent foreign officials acquiring property and assets in UK jurisdictions. As the above paragraph indicates, what follows reducing people's savings is an economic downturn, replete with waves of asset forfeitures and foreclosures when people are unable to pay their obligations out of (reduced) savings. Keen himself won the Revere Prize in economics for correctly predicting the GFC. One could conclude the additional GDP grown was a result of bringing resources un- or under-employed during the Great Depression back into production. It is my contention that these recovered fund from Britain belong to Delta State people and must go to them. These two types of government spending, on final consumption and on gross capital formation, together constitute one of the major components of gross domestic product. It is also true that fast economic growth is associated with increased health spending and sustained rapid economic growth between 2000 and 2017. The UK’s Africa minister, James Duddridge, hailed the move. • Enterprise Funds and Utility Rates: Local governments may establish an enterprise fund for city-operated services. “Corruption is a cancer in developing countries and the [UK] coalition government has a zero-tolerance approach to it. When a business is registered with the Corporate Affairs Commission ( CAC), it puts your clients at ease when making a decision about whether to spend money with / transact business with your company. You need to provide proof that your business is properly registered with the Corporate Affairs Commission (CAC) to open a business bank account in Nigeria. Heterodox economists have had to found their own journals, had to deal with difficulty getting tenure and employment as a result of their conclusions. Investors want to know that your business is organized, exists legally and is separate from your personal life and finances. By this act, you traded with recoveries amounting to over N3.7billion for almost 2 years before formally documenting the transaction”. It is a purchase from the national accounts "use of income account" for goods and services directly satisfying of individual needs (individual consumption) or collective needs of members of the community (collective consumption). The downward sloping demand curve D1 represents demand for private capital by firms and investors, and the upward sloping supply curve S1 represents savings by private individuals. The Commodity Credit Corporation (CCC or the Corporation) is a wholly-owned Government corporation created in 1933 under a Delaware charter and reincorporated June 30, 1948, as a Federal corporation within the Department of Agriculture by the Commodity Credit Corporation … The initial equilibrium in this market is represented by point A, where the equilibrium quantity of capital is K1 and the equilibrium interest rate is R1. Failure to register that business as at when due, might be the bane of some businesses, due to the lackadaisical and nonchalant attitude of some business owners, who prefer to go with some cognomen for their business even when not registered. ", Eurostat's government spending per sector, https://en.wikipedia.org/w/index.php?title=Government_spending&oldid=1009091075, Short description is different from Wikidata, Wikipedia articles with multiple identifiers, Creative Commons Attribution-ShareAlike License, This page was last edited on 26 February 2021, at 17:46. 1. USA Treasury cheques $215,000.00;viii. And then I ask, why does President Muhammadu Buhari always plays petty politics with infrastructures that are meant to benefit the South East of Nigeria. 3. EFCC’S RESPONSE: For the record, Ibrahim Lamorde was not in EFCC between May 2008 and December 2010 and could not have conspired with any EFCC official from his duty post in the Nigeria Police to transfer or withhold any recovered fund. Just before she could bask in joyous celebration, the company informed her that one of the condition-precedent for the supply was that she would submit a copy of her Business Incorporation certificate, and the certificate must reach the head office of the expatriate company by the first working day of the following week, being Monday. Donor’s Tax is a tax on a donation or gift and is imposed on the gratuitous transfer of property between two or more persons who are living at the time of the transfer.. 4. You also get legal liability protection. As Ibori was sentenced, NGOs called for further investigation into how he managed to move his money through his British and US bank accounts. Its current 'debt'-to-GDP ratio is roughly 240%--far above Reinhart and Rogoff's 90% threshold. [25] Acquisition of goods and services is made through production by the government (using the government's labour force, fixed assets and purchased goods and services for intermediate consumption) or through purchases of goods and services from market producers. Samuel okolie is a Lagos-based legal practitioner. The Human Rights Writers Association of Nigeria, HURIWA, on Tuesday called on the Nigerian Army to take decisive action against controversial Islamic Scholar, Sheikh Ahmad Gumi over his recent remarks on Christian soldiers killing bandits. §5-6-11b. “It’s welcome that the FSA [Financial Services Authority] has said it will do more to target banks that fail to tackle financial crime. Nevertheless, the events cited above, the Federal Reserve's response to the GFC (extending $16 - $29 trillion in credit to the financial sector[12]) and the current multi-trillion-dollar response to the COVID-19 pandemic appear to validate the conclusions of the heterodox economists, particularly Modern Money Theory. According to him, She had approached their firm for the registration of her business outfit. The United States spends vastly more than other countries on national defense. The Department for International Development (DfID), which funds the Proceeds of Corruption Unit, began investigating Ibori in 2005, alongside Nigeria’s anti-corruption unit, the … George Uboh should provide evidence to show that EFCC remitted the proceeds of DSP Alamieyeseigha assets to Bayelsa State through the Federal Government on 18th January, 2010 (instead of 9th July, 2009) and to also produce evidence for the sum of N4, 257,503,009.23 he claimed ought to have been remitted to Bayelsa State. So why does President Muhammadu Buhari-led administration wants to shortchange the people of Delta State by redirecting their recovered loot away from Delta to be used to build national infrastructure? The new equilibrium is at point B, where the interest rate has increased to R2 and the quantity of capital available to the private sector has decreased to K2. Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled: chanRoblesvirtualLawlibrary TITLE I In these countries, the real health spending per capita grew by 2.2 times and increased by 0.6 percentage point as per a share of GDP from 2000 to 2017. I must state at this point that it is often tempting to think that business registration can wait for a more convenient time or is not really important. The Metropolitan police estimates that Ibori embezzled $250m (£157m) of Nigerian public funds belonging to Delta State. According to the National Institute of Health (NIH) accounted for the lion's share of federal spending in medical and health research in 2017 was $32.4 billion or 82.1%.[23]. However, others examined their work found they cherry-picked their examples, and even had a mistake in the spreadsheet formulas they used to calculate this result.[11]. There is no credit risk when monetary sovereigns with floating exchange rates can "print" the means to repay their 'debt,' just as there would be no credit risk banks would be unable to pay depositors if they could print banknotes. But unless they issue penalties that really hurt, nothing will change,” said Palmer. Government spending or expenditure includes all government consumption, investment, and transfer payments. Examples include railroad or factory construction. People often point to Greece, which has to pay high interest rates to borrow, as an example. Other large economy country spending figures include South Korea ($4,557), Brazil ($2,813), Russia ($2,458), China ($1,010), and India ($226). Reducing the bank's 'debt' reduces the size of depositors' accounts. §008. According to the World Health Organisation (WHO), the increase in health spending in low-income countries, and it rose by 7.8% a year between 2000 and 2017 while their economy grew by 6.4%, it is explained in the figure. To buttress my point, I will share , by way of analogy, the experience of my learned colleague, Chinedu obioma, who shared the story of one of his client who missed a great opportunity in the business world, owing to her failure to act quickly when the opportunity arose. Historical GDP growth rates increase dramatically when the U.S. government spent for the New Deal and for big public works projects like World War II. Supposing your prayers are answered today and you’ve got a deadline to deliver services and one of the conditions for delivery is that you must produce your registration certificate? the opportunity came for her to become a millionaire, but she was ill-prepared for it. In 2005, Ibori instructed a London solicitor to buy a private jet costing $20m. How do you mitigate for the loss of that open-door when you are eventually turned down? Despite these events, according to orthodox economics, there's a threshold for government debt, beyond which the economy suffers, and bond markets will demand higher interest rates, or they cannot sell government debt. In line with established practice, the loot belongs to the people from whom it was stolen in the first instance. All moneys raised by the issuance of such bonds, after payment of the costs of issuance and financing costs, shall be appropriated for the expense of making grants in compliance with section 307.283 of the Revised Code and for no other purpose. Note: these numbers do not include U.S. state and local government spending which when included bring the per capita spending to $16,755, List of countries by military expenditures, Stockholm International Peace Research Institute, Investment § In economics or macroeconomics, List of countries by government spending as percentage of GDP, Government spending in the United Kingdom, https://www.bea.gov/resources/learning-center/what-to-know-government, https://www.nationalpriorities.org/budget-basics/federal-budget-101/borrowing-and-federal-debt/, "The Federal Budget Is Not Like a Household Budget: Here's Why", "The student who caught out the profs of austerity", "$29,000,000,000,000: A Detailed Look at the Fed's Bailout of the Financial System | Levy Economics Institute", https://dod.defense.gov/Portals/1/Documents/pubs/FY2019-Budget-Request-Overview-Book.pdf, https://www.sipri.org/sites/default/files/2020-04/fs_2020_04_milex_0_0.pdf, "Trends in World Military Expenditure, 2016", "Data for all countries from 1988â2016 in constant (2015) USD (pdf)", "Do innovation programs actually increase innovation? Spending on physical infrastructure in the U.S. returns an average of about $1.92 for each $1.00 spent on nonresidential construction because it is almost always less expensive to maintain than repair or replace once it has become unusable. [27], Infrastructure and investment: gross fixed capital formation ==. In addition, about 605 of this spending was public and 40% private, with donor funding representing less than 0.2% of the total although the health spending in real terms has risen by 3.79% in a year while global GDP had grown by 3.0%. [1][2] In national income accounting, the acquisition by governments of goods and services for current use, to directly satisfy the individual or collective needs of the community, is classed as government final consumption expenditure. 127â30. Federal law forbids police departments from putting future forfeiture proceeds in their budget plans. In January, of eight years back, Andrew Mitchell issued an unreserved apology to an Anglo-Nigerian whistleblower after the BBC’s Newsnight revealed DfID had betrayed his identity to the people he was accusing. Investors are interested in giving you money for a share of your business, and not to finance your personal lifestyle. Ibori is still politically influential and was instrumental to the emergence of the current governor Ifeanyi Okowa who succeeded James Ibori’s cousin Uduaghan. However, the industry accounted for 67% of total spending in 2017, followed by the federal government at 22%. Proceeds from Chelsea mgt. This is to prevent the proceeds of crime from being re-stolen. The truth is, you may be building something that could become very big and popular in the future. The Army had said that it does not deploy troops along religious or ethnic lines, contrary to Gumi’s statements to bandits that it was Christian soldiers killing them. But first, let us revisit the delivery of the landmark judgment of the British Court and read how the presiding judge deprecated the fact that someone entrusted by his people and elected to serve can amass so much illicit wealth off the common wealth of the same people who in the first place elected him to serve and not be served. Automatic stabilization is when existing policies automatically change government spending or taxes in response to economic changes, without the additional passage of laws. On DSP ALAMIEYESEIEGHA FORFEITED ASSETS the a) ALLEGATION: “That you Mr. Ibrahim Lamorde, as the Director of Operations, conspired with some officers in the EFCC to manipulate the forfeitures and recoveries from DSP Alamieyeseigha, which events took place between 2006 and 2007, as if it took place in July, 2008, with a view to shifting responsibilities to the regime or tenure of Mrs. Farida Waziri. A potential client might suspect your business of being a “fly-by-night” operation if your company isn’t properly registered. §5-6-11c. See Steve Keen's Debunking Economics: The Naked Emperor Dethroned for a complete account of its failings. §5-6-13. Last month, Coutts, the Queen’s banker, was fined £8.75m for breaches of money-laundering rules after three years of “serious” and “systemic” problems in handling the affairs of customers vulnerable to corruption because of their political links. Ibori admitted to fraud totalling more than $79m, said to be part of total embezzlement that could exceed $250m. What could I do for a client who had failed to heed professional advice? One amongst the plethora of actions that puts to question also the meaning of integrity in governmental decisions and policy implementation is the plot by the central government to receive and deploy for national projects the proceeds of the financial resources plundered from Delta State by the convicted and released erstwhile governor of that crude oil rich state- James Onanete Ibori. Other areas dedicate a portion of fines to fund EMS and fire services. ", "Strong but uneven spending in medical and health R&D across sectors over five-year period", "WHO | Global Spending on Health: A World in Transition", "Cost savings associated with improving appropriate and reducing inappropriate preventive care: Cost-consequences analysis", "Economic Data and Statistics on World Economy and Economic Freedom", "Is Government Spending Really 41 Percent of GDP? For example, In 2019 the United States approved a budget of 686.1 billion in discretionary military spending,[14]China was second with an estimated 261 billion dollars in military spending. For the term used in relation to the British monarchy, see, Government consumptions, investments, and transfer payments, Infrastructure and investment: gross fixed capital formation, CS1 maint: multiple names: authors list (, F. Lequiller, D. Blades: Understanding National Accounts, Paris: OECD 2006, pp. To them, it’s a sign of a lack of professionalism. Crowding 'in' also[21] happens in university life science research Subsidies, funding and government business or projects like this are often justified on the basis of their positive return on investment. Gleaming from the above, the benefit of business registration cannot be overstated. The truth is that the National debt of Japan sells at near a zero interest rate. *Emmanuel Onwubiko is the Head of HUMAN RIGHTS WRITERS ASSOCIATION OF NIGERIA HURIWA and blogs @www. huriwanigeria.com; [email protected], www.thenigerianinsidernews.com. The properties in London included a flat in St John’s Wood, a house in Hampstead, and one in Regent’s Park. Certificate of Incorporation/Registration, When your business outfit is duly registered, you will be issued a certificate of incorporation by the Federal Government of Nigeria through the agency of the Corporate Affairs Commission (CAC). Power of the state building commission to transfer project funds to other projects for state capitol improvements and renovations. On the other hand, contractionary fiscal policy can be used by governments to cool down the economy during an economic boom. With an unregistered business enterprise, you are clearly shooting yourself in the foot, and undercutting your chances of advancing up the ladder of prominence and visibility. From the continent view, North America, Western Europe, and Oceanic countries have the highest levels of spending, and West Central Asia, and East Africa the lowest, which is followed closely by South Asia, it is explained in the figure. The EFCC’s website has a piece that detailed recovered assets and how they were spent and much of it went back to the States from which they were stolen. Before they could get down to work, this client went ahead to print letter-headed papers, fliers, billboards, and what have you, with the name she had asked them to register. Sad to say, last week Friday, an expatriate company she submitted her proposal took interest in her work and asked her to send her quotation. (1) U NOBLIGATED FUNDS.—A State, Indian tribe, or tribal organization that anticipates being unable to obligate all grant funds received under this section by September 30, 2022, shall notify the Secretary, at least 60 days prior to such date, of the amount of funds the entity anticipates being unable to obligate by such date. So why will the case of Delta State be any different? Since there are more savings (as a result of higher income levels arising from the deficits) and greater financial wealth, it is not true that government is competing with private sector borrowers for a limited supply of savings (a flow) to place government bonds into wealth portfolios that are fixed in size. But the case has also embarrassed DfID. Government spending or expenditure includes all government consumption, investment, and transfer payments. Two properties were returned directly to Bayelsa State i.e. capital). [4][5] There are two types of fiscal policy: expansionary fiscal policy, and contractionary fiscal policy. Moreover, significant spending increment was in upper-middle-income economies population share has more than doubled over the period of, and share of global health spending nearly also doubled due to China and India's vast population joining that group. Period! CIA World Factbook, population data from 2010, Spending and GDP data from 2011. Among the questionable concepts orthodox economics promotes is Crowding Out, which presumes the economy is a zero-sum game.
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