With just six weeks to the end the year, President Muhammadu Buhari on Wednesday sent a supplementary budget of N465,636,926,857 to the National Assembly for appropriation. Muhammadu Buhari also sought for an upward review of the initial N882.1 billion borrowing in the 2015 budget to N2.103 trillion to finance the budget.
Of the N465.6 billion supplementary budget, N413.363 billion has been earmarked for the payment of subsidy for petrol, N39.65 billion for the fight against Boko Haram, code named ‘Operation Lafiya Dole’, N2 billion for the provision of prison rations, feeding for unity schools and others, and N10.62 billion for severance gratuity and allowances of outgone and incoming legislators and legislative aides.
Whereas the 2015 budget was predicated on a benchmark of $53 per barrel, foreign exchange at N190 to $1 and oil production of 2.2782 million barrels per day, the benchmark has now been revised downwards to $48 a barrel; foreign exchange remains at N190 to a dollar while oil production volume has been reduced to 2.2003 million per day.
He explained that the deficit of N1.041 trillion in the 2015 budget, translating to 1.09 per cent of the gross domestic product (GDP), would be largely financed by domestic borrowing of N502.1 billion and foreign borrowing of N380 billion culminating in total borrowings of N882.12 billion.
He added that the expected deficit arising from the supplementary budget is 2.103 trillion or 2.19 per cent of GDP to be financed by additional borrowing of 1.601 trillion through the Debt Management Office (DMO).
Buhari, accordingly, requested an upward review of the fiscal deficit from 1.09 per cent of GDP to 2.19 per cent as well as an upward revision of borrowings from 882.1 billion to 2.103 trillion in the 2015 budget.
While giving a breakdown of the 2015 budget and its shortfall, Buhari said: “The Federal Government of Nigeria’s budget revenue of N3.452 trillion was made up of the share of oil and mineral revenue of N1.645 trillion, share of non-oil revenue of N1.215 trillion and revenue of N489.3 billion.
“The 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 overheads of N791.2 billion; and capital expenditure of 536.6 billion.
“However, the implementation of 2015 budget has been flawed with significant revenue shortfalls due to the continuous decline in oil prices, oil production shortfalls and non-full non-oil revenue.
“You may wish to further note that owing to the need to sustain the current progress in addressing the security challenges and other important obligations of government, emergency expenditure items require urgent funding are projected at N465.64 billion.”
Omolara Adegoke- Abuja
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