Finance
minister and co-ordinating minister for the economy, Ngozi Okonjo-Iweala, will
today present the 2015 budget estimates separately to the two chambers of the
National Assembly.
The
total budget figure to be presented by the minister is N4.357.96 trillion. Out
of this amount, government proposed N627billion for capital expenditure and
N2.622 trillion for recurrent expenditure.
The
Federal Government had returned the
revised 2015-2017 Medium Term Expenditure Framework (MTEF) to the Senate to
ratify the adjustments carried out on the document, in tandem with current realities in the oil market.
This
is the second time President Goodluck Jonathan has
effected a change to the
MTEF and returned to the National Assembly for ratification, following the
instability in the international oil market which crashed crude oil prices recently.
In
the first MTEF presented to the apex parliament on 30th September, 2014,
Government had proposed a benchmark of $78 per barrel of crude oil, with an
exchange rate of N160 to a dollar. The total budget figure then, was N4.8
trillion.
However,
as the crude oil price crashed, Government effected a reduction of the oil
benchmark on November 18, from the earlier proposed $78 to $73 per barrel, with
an exchange rate of N162.00 to the dollar. The total budget figure in that
proposal was N4.7 trillion.
With
more fall in crude oil prices in the international arena, the Nigerian
Government also further reduced the benchmark to $65 per barrel, with exchange
rate of N165 to a dollar for the 2015 fiscal year.
The
fiscal deficit for 2015 was put at N755 billion against N993.68 billion for
2014; GDP pegged at N95,843 for 2015 against N80.222 for the 2014 fiscal year.
An
additional sum of N20 billion revenue is expected from sales of government
property; N10 billion from privatisation proceeds; N75 billion from FG’s share
of signature bonus; N80 billion from sharing from Stabilisation Fund Account;
N570 billion from domestic borrowing, while foreign borrowing was ruled out.
These were contained in the revised MTEF returned to the Senate yesterday by President
Jonathan for approval.
To
facilitate the presentation scheduled for 11am, the minister earlier yesterday,
held a closed door meeting with Speaker Aminu Tambuwal and other principal
officers of the House, where she sought for the co-operation of the House.
In
the letter which was read by Senate President, David Mark, Jonathan said, “I
refer to my earlier transmission to the National Assembly in November 2014 of
the revised 2015-2017 Medium Term Expenditure Framework, MTEF, for
consideration and approval.
“Given
further developments in the International oil market which have necessitated
further revisions, amendments have been made to some parameters, as well as to
some fiscal estimates in the MTEF.
“I
hereby forward copies of the revised 2015-2017 MTEF for the kind consideration
of the distinguished members of the Senate, and hope that it will be considered
and approved expeditiously, in order to bring the 2015 Federal Government of
Nigeria budget preparation process to quick closure”.
Also,
President Jonathan wrote the Senate yesterday, asking for the slot of 11am
today, to enable the finance minister lay the 2015 budget estimates before the
lawmakers for their consideration and approval.
He
explained that unstable oil prices at
the global level caused the seeming
inconsistency of the Federal Government in the handling of the MTEF and the
2015 Budget proposals.
Jonathan
however assured that irrespective of what the oil price might be, the
government would not embark on another revision of the oil benchmark after
submitting the budget estimates today, noting that necessary adjustments would
also be made in future, if the price of crude continues to drop.
The
letter reads: “In consonance with the provision of Section 81 Sub-section 1 of
the constitution of the Federal Republic of Nigeria 1999, as amended, I write
to request that the Distinguished Senate grant the Honourable Minister of
Finance the slot of 11 am on Wednesday, 17th December, 2014, to enable her lay
before you, the 2015 budget estimate.
“I
am cognisant of the fact that the budget estimates are being presented before
the passage of 2015-2017 Medium Term Expenditure Framework, MTEF. This is due
to the extra-ordinary global circumstances that confronted us in the latter
quarter of the 2014 fiscal year.
“As
you know, the first MTEF with the budget benchmark of $78 per barrel was
submitted to the National Assembly on 30th September 2014, and discussion on
the MTEF and budget construction based on those estimates began with the
relevant Committees of the National Assembly.
“However,
shortly after that submission, oil prices began to fall precipitously, leading
to the revision of the oil benchmark price in the MTEF to $73 per barrel, which
was resubmitted to the National Assembly on
the 18th of November 2014.
“Following
this, the decision of OPEC on their meeting in Vienna on the 27th of November
2014, we want to cut production to support the price, not to further
precipitous fall in the oil price to below $70 per barrel. This led one more
time to another downward revision of the benchmark price to $65 per barrel and
the revised MTEF, which we again submitted to you on 2nd of December, 2014.
“The
uncertainty surrounding the global price of crude oil and its continuous fall
has occasioned delays in both the submission of the final MTEF and budget
estimates. And we thus request your kind consideration of both these items
together, in view of our national budget calendar.
“We
would like to confirm that having submitted these budget estimates, we are not proposing
further revision of the oil benchmark price. Though prices continue to be
extremely volatile at present and to trend further downwards , there are
indications based on the price intelligence we have at this time, that prices
may range between $65 to $70 per barrel in2015.
“Nevertheless,
we will like to emphasize that there is no iron clad guarantee where oil prices
are concerned, due to numerous underlying global geo-political factors that are
outside our control and unpredictable. Should prices fall below the range, the
country will have to make further adjustments.
“We
hope that despite these circumstances, the distinguished will give kind and due
considerations to the budget estimates in sufficient time for us to implement
the 2015 budget starting early next year”.
Also,
the President submitted for the consideration and approval of the Senate, the
2015 budget proposal of the Nigeria Communications Commission, as well as the
2015 budget proposal of the Universal Service Provision Fund.
Businessday
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