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Security gets
N921.91
billion as Jonathan presents 2012 budget
Newsdiaryonline Tue Dec 13,2011
President Jonathan
President Goodluck Jonathan today
presented his 2012 budget proposal to the Joint session
of the National Assembly
in Abuja .During the
presentation, he emphasised
the need to avoid the vagaries of international oil
prices and strengthen non-
oil sources of revenue.
In presenting the budget Jonathan said “The
2012 budget is based on a set of assumptions reflecting
Government’s determination to maintain prudence in the face of
continued uncertainties in the external environment.
Accordingly, the budget is based on the following:Oil production
of 2.48 million barrels per day (mbpd) up from 2.3mbpd for
2011;Benchmark oil price of US$70/barrel, a cautious revision
from the US$75/barrel approved in the 2011 Amended
Budget;Exchange rate of NGN155/US$;Projected GDP growth rate of
7.2%; andProjected inflation rate of 9.5%.
Speaking on
the 2012 Revenue and
Expenditure Profile the
president said “Based on the above assumptions, the Gross
federally collectible revenue is projected at N9.406trillion, of
which the total revenue available for the Federal Government’s
Budget is forecast at N3.644 trillion, representing an increase
of 9% over the estimate for 2011. Non-oil revenue is projected
to grow significantly in 2012 as recent efforts to reform
revenue collecting agencies and the implementation of
initiatives to further develop non-oil sectors are expected to
yield results.
He added that “The aggregate expenditure
proposed for the 2012 fiscal year is N4.749 trillion, which is a
modest increase of 6% over the N4.484 trillion appropriated for
2011. I am pleased to note, however, that the declining share of
capital is being reversed so it will account for about 28% of
total expenditure in 2012 compared to 26% in 2011. We intend to
continue on this path so that by 2015, it will have risen to
almost 33%.
“This underscores the need to intensify our
efforts to curtail recurrent expenditure, which we have already
embarked upon under the policy of fiscal consolidation as
evident from the Medium-Term Fiscal Framework. The share of
recurrent expenditure in the 2012 Budget proposal is 72%, down
from 74.4% in 2011, and we intend to continue on this downward
trend up to 2015.The aggregate expenditure comprises N398
billion for Statutory Transfers, N560 billion for Debt Service
underscoring the real need to address the rising domestic debt
profile, and N2.472 trillion for Recurrent (Non-Debt)
Expenditure. We are conscious of the need to control the cost of
governance. Government will streamline agencies with overlapping
mandates as a way to realign public expenditure.
“In this respect, I have received the
preliminary Report of the task force which I set up for this
purpose and we shall implement relevant recommendations. We are
also pursuing the biometric verification of workers and
pensioners as part of our effort to control cost.
He unfurled further details:“Capital
expenditure has an allocation of N1.32 trillion representing a
15% increase over the amount approved in the 2011 Budget. The
emphasis is on the completion of critical infrastructure
projects.
“Based on the above, the fiscal deficit is
projected at about 2.77% of GDP in the 2012 Budget compared to
2.96% in 2011. This is within the threshold stipulated in the
Fiscal Responsibility Act, 2007 and clearly highlights our
commitment to fiscal prudence as a way to create more space for
the private sector.This will also have a salutary effect on our
domestic debt profile, which has risen significantly in recent
years. We are determined to rein in domestic borrowing, and
through this, ensure that our debt is at a sustainable level.As
I mentioned earlier, government has made significant progress in
putting the finances of the nation on a sound footing and laying
the foundation for rapid and sustainable economic growth.
President Jonathan then proceeded to
outline the
budgetary allocations to
key sectors."Allocations to some critical sectors of the economy
are as follows: Security - N921.91 billion; Power [including
Bulk Trader, Nelmco, and Multi-Year Tariff Order (MYTO)]
-N161.42 billion; Works - N180.8 billion; Education [excluding
Universal Basic Education Commission, Petroleum Technology
Development Trust Fund (PTDF) &
Education Trust Fund] - N400.15 billion; Health - N282.77
billion; and Agriculture & Rural Development - N78.98 billion.
Others are: Water Resources - N39 billion; Petroleum Resources –
N59.66 billion; Aviation - N49.23 billion; Transport - N54.83
billion; Lands & Housing - N26.49 billion; Science & Technology
- N30.84 billion; Niger Delta - N59.72 billion; Federal Capital
Territory Administration (FCTA) - N45.57 billion and
Communications Technology
- N18.31 billion,” he said.
Senate President David Mark in his opening
remarks urged the president to ensure implementation of
the budget to avoid past failures ."Over
the years, we have listened to very beautiful and impressive
budget speeches eloquently delivered in this chamber.
Unfortunately, the implementation has not matched the words as
economic policies often lack continuity and projects are
needlessly discarded or abandoned",Mark said.
Th
This is the document referred to in the Witness
Statement on Oath of Clifford O. Kokogho as
“Exhibit
COK.2”
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