The Minister of Finance, Dr. Ngozi Okonjo-Iweala,
on Thursday presented the 2014 budget estimates of N4.642tn to the Senate.
She laid the document on the table before the
senators during their plenary presided over by the President of the Senate,
David Mark.
Mark said the action was in conformity with
Section 81 of the 1999 Constitution as amended, which empowered the President
to communicate the budget estimates to the National Assembly.
Okonjo-Iweala, who was accompanied to the Senate
by some of her cabinet colleagues and the Director-General of the Budget Office
of the Federation, Dr. Bright Okogu, explained to journalists after the session
that the sum of N3.73tn was being expected as Federal Government’s projected
revenue.
She, however, explained that the Subsidy
Reinvestment and Empowerment Programme funds were not part of the estimates.
But the provision for SURE-P, according to the
budget highlight obtained from the finance ministry, was put at N268.37bn
The minister put the Federal Government’s capital
expenditure for 2014 at about N1.1tn, or 27 per cent of the budget.
The balance, she added, was for recurrent
expenditure, “which is about 72.71 per cent of the budget.”
The share of capital in the total expenditure is
27.29 per cent, down from 31.9 per cent in 2013, reflecting the increased
allocation to pension as well as high wage bill.
The budget is anchored on oil production of
2.3883 million barrels per day and an average exchange rate of N160 to a
dollar, same as in 2013. Real Gross Domestic Product growth rate is
projected at 6.75 per cent.
On the revenue side, the gross federally
collectible revenue is put at N10.88tn.Of this amount, gross federally
collectible oil and gas revenue is estimated at N7.16tn, while total deductions,
including cost of crude oil production, subsidy payments and domestic gas
development is pegged at N2.15tn, same as in 2013.
According to the budget highlights, fuel subsidy
payments are maintained at the 2013 level of N971.1bn, while gross federally
collectible non-oil revenue is put at N3.29tn.
Okonjo-Iweala put the statutory transfers at
N399.7bn, while the Independent National Electoral Commission’s expenditure was
projected to increase from the N32bn provided in 2013 to N45bn.
This is to enable the commission intensify
preparations for the 2015 elections.
The fiscal document also stated that the National
Assembly’s allocation was to be maintained at the 2013 level of N150bn, while
the provision for debt service was N712bn, up from the 2013 level of N591.8bn.
Recurrent (non-debt) spending is estimated at
N2.43tn, down from N2.80tn in 2013; while personnel cost increased slightly
from the 2013 amendment budget provision of N1.718tn to N1.723tn for 2014.
Fiscal deficit is projected at N911.96bn. As a
share of the GDP, the fiscal deficit is put at 1.90 per cent.
For new borrowing requirements, the document said
N571bn would be raised from the bond market, indicating a decrease from N577bn
in 2013.
Okonjo-Iweala said, “This budget is the budget
for job creation and inclusive growth, meaning that it is a budget, which will
continue the President’s transformation agenda for several sectors of the
economy.
“The budget is going to support the push in
agriculture; it will kick-start the housing sector, where we can create more
jobs; it is designed for our policies that will support manufacturing because
jobs will be created there.
“Industries will also be created in solid
minerals. All these supports will continue to be unleashed. Job creation
is the key to really solving the problems of the Nigerian economy.”
The minister explained that the distinguishing
feature of the 2013 and 2014 budget estimates was that they focused to continue
the successes recorded in 2013 by the Federal Government in the areas of job
creation for young Nigerians.
She pledged that all programmes that created jobs
like the SURE-P, community services and the You-Win programmes would be pushed
and supported.
Okonjo-Iweala added that the capital expenditure
would be channeled to infrastructure development like rail rehabilitation, road
reconstruction, water resources and the development the Niger Delta.
She said, “We have privatized power but we will
be working on the transmission to direct resources there.
“The distinguishing thing is that it is a
continuation of what we have done before, but with more emphasis on really
pushing out jobs and also supporting safety nets that can further redistribute
income to poor people in the country.”
The Senate subsequently adjourned to January 14,
2014 to resume consideration of the budget proposal and other legislative
functions.
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