Politics

President Buhari Presents 2018 Budget Estimate

President Buhari

In a bid to meet his administration’s target to restore the budget calendar to the January-December fiscal cycle, President Muhammadu Buhari Tuesday presented the N8.612 trillion 2018 Appropriation Bill to a joint session of the National Assembly, representing a 16 per cent increase over the N7.441 trillion budget for 2017.
Of the N8.6 trillion budget, the Ministry of Power, Works and Housing headed by Mr. Babatunde Fashola, got the lion share of N555.8 billion, signifying the administration’s commitment to infrastructure projects, to expand the economy and create more employment opportunities.

Clad in a light blue traditional babariga and cap with his trademark glasses, Buhari walked into the Green Chambers of the House of Representatives at 2.02 p.m.
He was ushered in by the Deputy Speaker of the House, Hon. Yussuff Sulaimon Lasun, his Senior Special Assistant, National Assembly Matters (Senate), Senator Ita Enang, Senate and House Leaders, Ahmed Lawan and Femi Gbajabiamila, and the House Whip, Hon. Alhassan Ado Doguwa.
The event was witnessed by Vice-President Yemi Osinbajo, Secretary to the Government of the Federation (SGF), Mr. Boss Mustapha; Head of Service, Mrs. Winifred Oyo-Ita; Chief of Staff to the President, Mr. Abba Kyari; Chairman of the Nigerian Governors’ Forum (NGF) and Zamfara State Governor, Abdulaziz Yari of Zamfara; national executives of the All Progressives Congress (APC) led by the party’s chairman, Chief John Oyegun; the Minister of Budget and National Planning, Senator Udoma Udo Udoma; and his finance counterpart, Mrs. Kemi Adeosun, among other ministers and senior government officials.
Tagged the budget of consolidation, the Bill is proposing N2.428 trillion as capital expenditure, representing 30.8 per cent of the budget, N3.494 trillion for recurrent expenditure, N2.014 trillion for debt service, N456 billion for statutory transfers, and N220 billion for the Sinking Fund to retire maturing bonds to local contractors.

The President of the Senate, Dr. Bukola Saraki, and the Speaker of the House of Representatives, Hon. Yakubu Dogara, however hinged the early passage of the budget on the cordial relations between the executive arm of government and the legislature.
The key parameters and assumptions for the 2018 budget proposal were set out in the yet-to-be approved 2018-2020 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), which has been committed to the Senate and House Committees on Finance, Appropriation and National Planning.
These include a benchmark oil price of $45 per barrel, oil production estimate of 2.3 million barrels per day, including condensates, exchange rate of N305/$1 for 2018, real GDP growth of 3.5 per cent and inflation rate of 12.4 per cent.
The estimated total revenue for the 2018 budget was put at N6.607 trillion, 30 per cent more than the 2017 budget estimates. Of the total projected revenue, oil revenue was put at N2.442 trillion, while N4.165 trillion would come from non-oil revenue sources.
The projected deficit in the 2018 budget estimates was put at N2.005 trillion, representing 1.77 per cent of GDP.

According to Buhari, “We plan to finance the deficit partly by new borrowings estimated at N1.699 trillion. Fifty per cent of this borrowing will be sourced externally, while the balance will be sourced domestically.

“The balance of the deficit of N306 billion is to be financed from the proceeds of privatisation of some non-oil assets by the Bureau of Public Enterprises (BPE).”
Buhari said based on MTEF/FSP parameters, total federally collectible revenue was estimated at N11.983 trillion for 2018.
“Thus, the three tiers of government shall receive about 12 per cent more revenue in 2018 than the 2017 estimates. Of the amount, the sum of N6.387 trillion is expected to be realised from oil and gas sources. Total receipts from the non-oil sector are projected at N5.597 trillion,” the president explained.
Buhari, in an address which lasted for one hour and nine minutes, also presented key capital spending estimates to include N263.10 billion for the Ministry of Transportation, N145 billion for the Ministry of Defence, N118.98 billion for the Ministry of Agriculture and Rural Development, N95.11 billion for the Ministry of Water Resources, and N82.92 billion for the Ministry of Industry, Trade and Investment.
Others are N63.26 billion for capital projects in the Ministry of Interior, N61.73 billion for the Ministry of Education, N71.11 billion for the Ministry of Health, and N53.89 billion for the Niger Delta Ministry.

Capital spending for Special Intervention Programmes was put at N150.00 billion, N109.6 billion for the Universal Basic Education Commission (UBEC), N40.30 billion for the Federal Capital Territory, N45 billion for the North East Intervention Fund, N71.20 billion for the Niger Delta Development Commission (NDDC) and N100 billion for Zonal Intervention Funds (ZIFs).
Recurrent expenditure for key ministries such as interior was estimated at N510.87 billion, N435.01 billion for the education ministry, N422.43 billion for the Ministry of Defence and N269.34 billion for the Ministry of Health.

The 2018 budget is also proposing the sum of N9.8 billion for the Mambilla hydro power project, including N8.5 billion as counterpart funding, N12 billion counterpart funding for earmarked transmission lines and sub-stations, N35.41 billion for the National Housing Programme, N10 billion for the Second Niger Bridge, and N300 billion for the construction and rehabilitation of strategic roads.
The 2018 budget will consolidate on the achievements of previous budgets and deliver on Nigeria’s Economic Recovery and Growth Plan (ERGP) 2018 – 2020, Buhari told the audience.
The president spent considerable time highlighting the successes of the 2016 budget, probably due to the low implementation of the 2017 budget which was passed in June this year and is expected to end when the new budget is passed.

The president said N1.2 trillion was expended on capital projects in the 2016 budget, adding that 2017 was a year of uncertainty while 2018 is expected to be a year of better outcomes.
“Nigeria’s journey out of the recent recession was a revealing one. We heard many opinions from within and outside Nigeria on how best to address our economic woes. We listened carefully and studied these proposals diligently.

“Our belief has always been that the quickest and easiest solution may not necessarily be the best solution for a nation as diverse as ours. We took our time to create a balanced and equitable response, keeping in mind that only tailored Nigerian solutions can fix Nigeria’s unique problems,” Buhari said.
The president listed the achievements brought about by his policies to include an increase in external reserves to $34 billion as of October 30, 2017, an export-import trade surplus of N506.5 billon by the second quarter of 2017, rise in ranking to 145th position by World Ease of Doing Business report from 169th position, improved tax administration, optimising efficiency in expenditure, increased investment in infrastructure, agricultural and health sector development, and the Social Investment Programme.
“Our Sovereign Wealth Fund, which was established in 2011 with $1 billion, did not receive additional investment for four years when oil prices were as high as US$120 per barrel. However, despite record low oil prices, this administration was able to invest an additional $500 million into the fund,” he said.
Commending the members of the National Assembly for their collaborative support in moving Nigeria forward, Buhari gave the lawmakers the assurances of his strong commitment to deepening executive-legislative relations.

“I appeal to you to swiftly consider and pass the 2018 Appropriation Bill,” he said and expressed hope that the budget would be passed before January 1, 2018.

Credit  Thisday

Leave a Reply

Your email address will not be published. Required fields are marked *