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Senate passes N3.049tr 2009 Budget

Posted by From Augustine Ehikioya, Abuja on 2008/12/18 | Views: 1177 |

Senate passes N3.049tr 2009 Budget

Two weeks after the presentation of the 2009 Budget proposals by President Umaru Musa Yar’Adua, the Senate yesterday passed the 2009 Appropriation Bill.

Two weeks after the presentation of the 2009 Budget proposals by President Umaru Musa Yar’Adua, the Senate yesterday passed the 2009 Appropriation Bill.
Yar’Adua had proposed a N2.87 trillion expenditure during the presentation to the joint session of the Senate and House of Representatives on December 2.

The Senate increased the total expenditure by N180 billion.

The N3.049 trillion passed yesterday include N165.72 billion for Statutory Transfers, N283.6 billion for Debt Service, N1.709 trillion for Recurrent (Non-Debt) Expenditure and N890.136 billion for Capital Expenditure.

President Yar’Adua proposed N140.7 billion for Statutory Transfers, N283.6 billion for Debt Service, N1.649trillion for Recurrent (Non-Debt) Expenditure and N796.7 billion for Capital Expenditure.

The Senate increased the Statutory Transfers by N26 billion. Recurrent (Non-Debt) expenditure was jerked up by N61 billion. The Capital Expenditure was increased by N93 billion. Debt Service remains, with the executive proposal amounting to N283.6 billion.

Presenting the 2009 Appropriation bill report on behalf of the Chairman of the Appropriation Committee to the Senate, the Vice Chairman, Senator Ahmed Maccido, disclosed that the adjusted revenue framework submitted by the former Finance Minister, Dr. Usman Shamsudeen, after the President’s presentation, revealed that more funds were available for appropriation.

He said the Appropriation and the Finance Committees of the Senate had several Joint Consultative sessions with the Minister of Finance, the Director-General, Budget Office and other relevant revenue generating agencies to evaluate the assumptions and parameters of the Budget with particular focus on the revenue accruable to the Federation.

He went on: "These sessions with the relevant government agencies provided an opportunity for indepth analysis of grave issues relating to the reality of the crude oil benchmark price, amidst the challenges of the volatile international oil market price which posses serious concerns to our fiscal outlook."

"The Finance Committee of the National Assembly, after careful analysis of the adjusted revenue proposals, recommended that a benchmark of US$45 per barrel of crude oil be adopted. The Appropriation Committee adopted this recommendation in the light of the nation’s financing needs. The crude oil production per day is put at 2, 292,000 barrels as proposed by the Executive. The exchange rate is put at N125 to US$l."

"It should be noted however, after Mr. President’s speech on the 2009 Budget proposals; the Minister of Finance subsequently submitted an adjusted revenue frame work which gives rise to more funds for appropriation."

He gave the summary of the Federal Government’s retained revenue and the aggregate expenditure for 2009 Budget as Net retained revenue - N2,291.65 Billion , aggregate, Deficit (Fiscal) - N757.45 billion, Deficit/GDP - 2.70%, Financing items include Signature bonuses - N125 billion, Privatisation Proceeds

N100 billion, Recall of US$200 million from the Nigerian Trust Fund of the ADB - N25 billion, a Naira-Denominated International Bond issue of US$500 million - N62.5 billion, Domestic Borrowing - N445.676 billion

Addressing journalists in Abuja yesterday, the Chairman of the Senate Committee on Appropriation, Senator Iyiola Omosore, explained that the difference in the figure passed and the figure proposed by the executive was arrived at after thorough consideration of some factors, including the variations in foreign exchange and prices of oil since December 2 when the President presented it.

The bill appropriated a capital expenditure of N116 billion for Agriculture and Water Resources, N66 billion for FCT Administration, N86 billion for Power, N171 billion for Works, Housing and Urban Development, N23 billion for Aviation, N47 billion for Niger Delta Ministry.

Police Formations and Commands got N13 billion, Defence/MOD/Army/Air-force/Navy got N38 billion, Education - N39 billion, Health – N42 billion, Interior – N11 billion, N5 billion went to INEC.

Under Capital Supplementation, the Conditional Grants and Social Safety Nets (MDGs) got N41 billion and Quick Wins (2008) got N19.7 billion.

For Recurrent Expenditure N184 billion was allocated to Police Formations and Commands, N176 billion for Defence/MOD/Army Air Force/Navy, N183 billion for Education, N103 billion for Education, N3 billion for the Niger Delta Ministry, N13 billion for INEC,

Some ministries and parastatals were still defending their budgets before some of the Senate Committees yesterday.

The budget still needs a concurrent passage by the House of Representatives.

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Comments (3)

Abieyuwa(Edo, Nigeria)says...

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Naija g(Houston, Minnesota, US)says...

Sokari doesn’t mean joy. Joy is Biobela. Go to the village and ask the meaning of the name.

Fay(Katy, Texas, US)says...

Actually translates to bravehearted.