Senate jacks up 2008 budget to N2.9 trillion - Blames Yar’Adua for the delay

Soji-Eze Fagbemi and Taiwo Adisa, Abuja - 13.02.2008

AFTER months of delay, the Senate finally passed a N2.9 trillion appropriation budget for 2008, with transportation having the highest share of N199.589 billion in capital expenditure, followed by energy with N126.416 billion and agriculture and water resources with N119.318 billion.

However, the Interior Ministry took the highest share in recurrent (non-debt) expenditure with an allocation of N252.6 billion, followed by education N168. 64 billion, defence N158.05 billion, pension pay as you go system, N100.185 billion and health N89.45 billion.

The N2.9 trillion approved by the Senate is an increase of 27 per cent on the capital proposal by President Umaru Yar’Adua to the National Assembly in November.

Of the N2.9 trillion, N1.410 trillion is for recurrent expenditure, while N952. 297 billion is for capital expenditure, N372.200 billion for debt service and N163.570 for statutory transfers.

The budget was predicated on a bench mark of $59 per barrel of oil and a crude oil production of 2.45 million barrels per day, against the $53.83 barrel proposed by the executive. Other key assumptions of the budget: Joint Venture cash call, $4.97 billion, GDP Growth Rate, 11 per cent, inflation rate, 8.5 per cent and exchange rate of N117 to $1 Christened “Budget for the Nigerian People,” Senator Iyiola Omisore, Chairman, Appropriation Committee of the Senate, stated that consequent upon the meeting with the Federal Ministry of Finance, the Federal Inland Revenue Service, the Nigerian National Petroleum Corporation, the Office of the Accountant­General of the Federation and other agencies of government, due consultation with the House of Representatives, the committee adjusted the revenue framework for the budget.

He pointed out that the oil price benchmark was raised to $59 per barrel from the executive proposal of $53.83 per-barrel, while the production per day was accepted at 2.45m barrel-per-day.

“This upward review of the oil price benchmark is necessitated by the prevailing situation in the international oil market, the situation in the Middle East and the need to tread on a positive path, having also considered the effect of possible recession in some of the countries,” he said.

He stated that non-implementation of the capital budgets had been a recurring issue since the return to democracy in 1999, saying that in years of buoyancy, ministries, departments and agencies (MDAs) simply could not implement their capital votes and in some cases, expenditures could not be matched with projects.

He regretted that this had taken its toll on the welfare of Nigerians in general and the individual constituents of the legislators in particular.

Meanwhile, the Senate on Tuesday blamed President Musa Yar’Adua for the delay in the passage of the 2008 budget, saying that the budget could not be passed before the New Year as envisaged by the National Assembly due to the late submission of the budget by the president.

Senator Omisore stated that President Yar’Adua presented the budget proposal to the joint sitting of the National Assembly on November 8, 2007, seven weeks to the end of the 2007 fiscal year, instead of between September and October, 2007.

This, according to Senator Omisore, made the desire and commitment of the National Assembly to pass it before January 2008 unachievable, even as he made the late submission of the budget proposal a prominent highlight of his presentation.

He said: “It is expedient for budget proposals to be presented to the National Assembly by the executive early enough, preferably between September and October, to allow sufficient time for efficient and effective budgetary process and legislative actions.

“However, the 2008 Appropriation Bill, containing proposed estimates for 2008 fiscal year, was presented by the President of the Federal Republic of Nigeria on November 8th, 2007, about seven weeks to the end of the 2007 fiscal year. The desire and the commitment of the National Assembly to pass the 2008 Appropriation Bill before the New Year (2008), therefore, became unachievable.

“Given the conviction of the present National Assembly to strictly adhere to the tenets of due process, the budget had to be subjected to its due process of passage. The committee wishes to observe that the report presented is a product of diligent due process and indepth legislative actions.”

Pursuant to Order 92(1)(b), Senator Omisore said the bill was deemed to be read the first time on the presentation to the Joint Session of the National Assembly by the President, adding that the senate debated the general principles of the Bill.

He explained that they set out a timetable for the committee work, an integral aspect of the budget and consideration commenced in earnest after the Christmas, Sallah and New Year recess.

He noted that some of the standing committees experienced difficulties in getting some ministries and other agencies of government to appear and defend their budget proposals.