Jonathan expected to Assent to 2015 budget
Posted by admin | 9 years ago | 1,072 times
President Goodluck is expected to assent to the 2015 budget recently passed by the National Assembly soon as the Coordinating Minister for the Economy (CME) and Finance Minister, Dr. Ngozi Okonjo-Iweala declared on Tuesday that what the parliament passed ‘is not dramatically’ different from what was sent to it by the executive.
And contrary to claims in some quarters that subsidy on petroleum motor spirit (PMS) had been removed from the budget to torpedo the smooth take-off of the incoming administration, Okonjo-Iweala confirmed that a total of N142.52 billion was provided in the budget for both PMS and kerosene.
She gave the breakdown as N100 billion for PMS and N42 billion for household kerosene, otherwise known as Dual Purpose Kerosene (DPK).
At the 2015 budget briefing in Abuja yesterday, the minister gave the parameters as $53 per barrel benchmark, a dollar higher than what was proposed to the National Assembly; exchange rate of N190.
The minister, who expressed appreciation to the National Assembly for finding time to pass the budget in spite of the demands of electioneering, stated that the Senate had passed the 2015 Budget on April 28, 2015 following the passage of the same bill by the House of Representatives on April 23, with an expenditure outlay of N4.493 trillion (up from the N4.425 trillion proposed by the President.
This, she said, represents an increase of N67.43 billion, adding that the parliament passed a benchmark oil price of US$53 per barrel ($1 higher than the Budget proposal; generating an extra revenue of N54.25 billion for the government.
According to her, other key parameters driving the oil revenue side of the budget were retained, including oil production volume of 2.2782mbpd and an exchange rate of N190/$.
The minister said It was important to note that the lawmakers approved the N100 billion and N45.52 billion provisioned for fuel and kerosene subsidy proposed by the Executive.
While other components of non-oil revenue were also retained as proposed, the minister disclosed that the federal goverrnment Independent Revenue was raised by N39.294 billion, from N450 billion to N489.294 billion.
Based on the above, she affirmed that Gross Federally Collectible Revenue increased by N169.845 billion, from N9.61 trillion to N9.78 trillion, as a direct result of raising the benchmark price.
FGN Budget Revenue also rose from N3.358 trillion to N3.452 trillion even as aggregate expenditure passed by the parliament stands at N4.493 trillion—N67.43 billion higher than the proposed aggregated expenditure of N4.425 trillion.
The National Assembly also retained the N943.62 billion proposed by the Executive for Debt Service while Statutory transfers increased by N9.34 billion, from N366.28 billion to N375.62 billion.
The Niger Delta Development Commission (NDDC ) vote also increased from N45.78 billion to N46.72 billion (an increase of N940 million), while that of Universal Basic Education (UBE) also increased from N67.30 billion to N68.38 billion (an increase of N1.08 billion).
According to the CME, “these are strictly based on formula driven by the increase benchmark oil price.”
National Assembly allocation was raised by N5 billion, from N115 billion proposed by the Executive to N120 billion.
Aggregate capital expenditure (including transfers and SURE-P) increased to N722.20 billion, from N663.67
This comprises an increase of N37.77 billion in Ministries Departments and Agencies’ (MDAs’) capital and N20.80 billion for Millennium Development Goals (MDGs) under capital supplementation.
However, while the National Assembly completely removed N5 billion proposed for the Integrated Personnel and Payroll Information System (IPPIS), N1 billion was provisioned for a new project, National Assembly Clinic.
Capital development of the National Institute for Legislative Studies was also increased by N4 billion (from N2 billion to N6 billion).
But the provision of N20.78 billion for SURE-P capital spending as proposed in the Appropriation Bill presented by the Executive was retained.
Responding to questions on what would become of capital releases which have been stalled due to 50 per cent revenue drop, the minister said she could not speak for the incoming administration since the government she is serving is winding down on May 29.
She maintained her position that the year would be a difficult one due to the revenue slump, adding that the serious cash crunch had been ingeniously managed month by the current administration in order to keep the country afloat.
“As you know, I have been honest with you since the recent economic problems started".
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