Okonjo-Iweala presents N4.6tn budget estimates to Senate

 

Coordinating Minister for the economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala

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 focussed 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 channelled to infrastructure development like rail rehabilitation, road reconstruction, water resources and the development the Niger Delta.

She said, “We have privatised 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.