Subsidy: N413.64bn; Anti-terror war: N39.65bn; Prison ration: N2bn; Legislative aides: N10.62bn
Forty-three days to end the 2015 fiscal year, President Muhammadu Buhari yesterday submitted a supplementary budget of N465.64 billion to the National Assembly for consideration and approval.
The supplementary budget is for the purposes of addressing the current security challenges, petroleum subsidy and feeding of prisoners and students of unity schools.
Out of the N465.64 billion, N413.64 billion is for emergency provision for subsidy claims, N39.65 billion is for the operation of Lafiya Dole and others; N2 billion for the provision of prison rations, feeding for unity schools while N10.62 billion is for the provision for balance of severance gratuity and allowances of outgone and incoming legislators and legislative aides.
Buhari also asked the National Assembly to do an upward review of the nation’s borrowing plan from N882.1 billion to N2.103 trillion, as the current plan was no longer tenable, in view
of the dwindling revenue profile, stemming from the crash of oil price globally. In a letter sent to the National Assembly, which was read both on the floors of the Senate and House of Representatives, Buhari recalled that the 2015 budget was predicated on oil production of 2.2782 million barrels per day.
He also reminded the Upper Chamber that the budget of the current year was hinged on a benchmark oil price of $53 per barrel and an exchange rate of N190 per dollar.
But in the current proposal, Buhari noted that the benchmark had now been reviewed down to $48 benchmark; foreign exchange remains N190 to a dollar while oil production volume had been reduced to 2.2003 million per day.
He explained that the total N1.041 trillion or 1.09 per cent of the gross domestic product (GDP) with the deficit largely financed by domestic borrowing of N502.1 billion and foreign borrowing of N380 billion in the 2015 budget aggregated in a total borrowing sum of N882.12 billion.
He stated that the expected deficit arising from the above figure 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 (DMO). Buhari, therefore, requested for an upward review of the fiscal deficit from 1.09 per cent of GDP to 2.19 per cent of GDP as well as an upward revision of the new borrowing from N882.1 billion to N2.103 trillion.
In the letter dated November 17, 2015 and addressed to both the Senate President and Speaker, the president said: “The 2015 budget was predicated on oil production of 2.2782 million barrels per day, benchmark oil price of $53 per barrel and an exchange rate of N190 to $1.00.
“Based on these key assumptions, the following fiscal outturns were projected: “Federal government of Nigeria’s budget revenue of N3.452 trillion made up of the share of oil and mineral revenue of 1.645 trillion, share of non-oil revenue of N1.215 trillion and revenue of N489.3 billion “Federal Government of Nigeria’s aggregate expenditure was estimated at N4.485 trillion, comprising of statutory transfers of N354.34 billion; debt service of N953.6 billion; recurrent-non debt personnel cost of N1.828 trillion; recurrent non-debt overhead of N791.2 billion and capital expenditure of 536.6 billion,” Buhari said.
Buhari lamented that the implementation of the 2015 budget had been flawed with huge revenue shortfalls, sequel to the progressive decline in oil price, oil production shortfall and non-full non-oil revenue. After reading the letter, Senate President Bukola Saraki sent the request to the Senate Committee on Appropriations for further legislative action.
The House of Representatives will today commence consideration of the N465.6 billion 2015 supplementary appropriation bill submitted by President Buhari. Speaker Yakubu Dogara announced this yesterday shortly after reading the letter from the president conveying the details of the supplementary appropriation bill. In another development, the Senate also approved $200 million World Bank loan for the Development Policy Operation (DPO) for the Lagos State Government.
The approval followed the Senate’s consideration of the report of its Ad hoc Committee on Local and Foreign Debts on $200 million from the World Bank as earlier requested by President Buhari.
He also reminded the Upper Chamber that the budget of the current year was hinged on a benchmark oil price of $53 per barrel and an exchange rate of N190 per dollar.
But in the current proposal, Buhari noted that the benchmark had now been reviewed down to $48 benchmark; foreign exchange remains N190 to a dollar while oil production volume had been reduced to 2.2003 million per day.
He stated that the expected deficit arising from the above figure 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 (DMO). Buhari, therefore, requested for an upward review of the fiscal deficit from 1.09 per cent of GDP to 2.19 per cent of GDP as well as an upward revision of the new borrowing from N882.1 billion to N2.103 trillion.
In the letter dated November 17, 2015 and addressed to both the Senate President and Speaker, the president said: “The 2015 budget was predicated on oil production of 2.2782 million barrels per day, benchmark oil price of $53 per barrel and an exchange rate of N190 to $1.00.
“Based on these key assumptions, the following fiscal outturns were projected: “Federal government of Nigeria’s budget revenue of N3.452 trillion made up of the share of oil and mineral revenue of 1.645 trillion, share of non-oil revenue of N1.215 trillion and revenue of N489.3 billion “Federal Government of Nigeria’s aggregate expenditure was estimated at N4.485 trillion, comprising of statutory transfers of N354.34 billion; debt service of N953.6 billion; recurrent-non debt personnel cost of N1.828 trillion; recurrent non-debt overhead of N791.2 billion and capital expenditure of 536.6 billion,” Buhari said.
Buhari lamented that the implementation of the 2015 budget had been flawed with huge revenue shortfalls, sequel to the progressive decline in oil price, oil production shortfall and non-full non-oil revenue. After reading the letter, Senate President Bukola Saraki sent the request to the Senate Committee on Appropriations for further legislative action.
The House of Representatives will today commence consideration of the N465.6 billion 2015 supplementary appropriation bill submitted by President Buhari. Speaker Yakubu Dogara announced this yesterday shortly after reading the letter from the president conveying the details of the supplementary appropriation bill. In another development, the Senate also approved $200 million World Bank loan for the Development Policy Operation (DPO) for the Lagos State Government.
The approval followed the Senate’s consideration of the report of its Ad hoc Committee on Local and Foreign Debts on $200 million from the World Bank as earlier requested by President Buhari.
