ABUJA – President Muhammadu Buhari, yesterday, sent a Supplementary Appropriation Bill of four hundred and sixty-five billion, six hundred and thirty-six million, nine hundred and twenty-six thousand, eight hundred and fifty-seven Naira for the 2015 fiscal year to the National Assembly for approval.
Of the total sum, N413,363,134,505 is for subsidy payment for petroleum imports, which is the cause of scarcity being experienced in the country at present, while the remainder of N52,273,792,352, is to cater for outstanding payment of N10,618,837,435 severance gratuity and allowances of outgone and incoming legislators and legislative aides.
Also to share from the remainder N52.27 billion are Operation Zaman Lafiya (fight against Boko Haram) – N29.959 billion; Salaries for 156 Recruits, Regular Combats and Direct Short Service – N3,196,089,405; AllAfrican Games Qualification For Rio 2016 Olympics – N1.5 billion; Victim Support Fund – N5 billion; and Margin for Increases in Cost/Recurrent Adjustment – N2 billion.
The president, in a letter conveying his request, which was read, during plenary, by the Senate President, Bukola Saraki, asked the Senate to grant his request to borrow the sum of N2.10 trillion to finance the budget as against an earlier approved N882 billion.
According to the president, the N1.2209 trillion increments were predicated emerging realities in the country and the loans would be sourced from both local and foreign sources.
“The Senate President, you may wish to recall that the 2015 budget was predicated on oil production of 2.2782million barrels per day. Benchmark oil price of 53 dollars per barrel and an exchange rate of 190 per dollar. Based on these three assumptions the following fiscal budget was projected
FGN budget revenue N3.452 trillion made up of share of oil and mineral revenue – N1.645 trillion; share of non oil revenue – N1.215 trillion; FGN Independent revenue – N489.3 billion.
FGN aggregate expenditure was estimated at N4.485 trillion, comprising of Statutory Transfers – N354.34 billion; Debt Service – N953.6 billion, Recurrent Non Debt Personnel Cost – N1.828 trillion; Recurrent Non Debt Overhead – N791. 2 billion; Capital Expenditure – N536. 6 billion.
However the implementation of the FGN 2015 Budget has been flawed with significant revenue shortfalls due to continuous decline in oil price, oil production shortfall and non oil revenue.
You may wish to further note that owing to the need to sustain the current progress in the addressing the security challenges and other important obligations of government, emergency expenditure items required urgent funding is projected at N465.64 billion.
Given this new level of expenditure and revenue constraint, the 2015 Budget which had a projected Fiscal Deficit of N1.041 trillion (or .109 per cent of GDP) with the deficit largely financed by the Domestic Borrowing of N380 billion (total borrowing amounting to N882.12 billion) calls for additional borrowing. The expected deficit arising from the above is projected at N2.103 trillion (or 2.19 per cent of GDP) to be financed by additional borrowing of N1.601 trillion through the Debt Management Office.
Accordingly I deem it necessary to formally request the concurrence of the National Assemby to please consider and approve: An upward review of the fiscal deficit from 1.09 per cent of GDP to 2.19 per cent of GDP; An upward revision of the new borrowing from N882.1 billion to N2.103 trillion; A new funding requirement to address security challenges and other important obligations with the sum of N465.64 billion; the 2015 Budget Revised Revenue Framework as attached”, the letter read.
– (Nigerian Observer)
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