President presents supplementary budget to N’Assembly
FG to borrow N1.6trn
REPRIEVE is under way for fuel consumers as President Muhammadu Buhari yesterday submitted a request to the National Assembly to approve his Supplementary Appropriation Bill of N465,636,926,857. Included in the document was the N413 billion fuel subsidy payment.
Two weeks ago, the President approved the release of N413 billion to the marketers who are yet to lay their hands on the money. The situation has led to the current fuel scarcity nation-wide and skyrocketing pump prices.
As the shortage bites harder in some cities like Port Harcourt and Calabar, the product is selling for as high as N400 per litre.
The President explained in the 2015 Appropriation Bill that N460,636,926,857 is for additional recurrent (non-debt), while N5,000,000,000 is contribution to the development fund for capital expenditure for the year ending on December 31, 2015.
According to the letter sent to both Senate President Bukola Saraki and Speaker, House of Representatives, Yakubu Dogara, N413,363,134,505 is for the payment of fuel subsidy.
The breakdown of the supplementary budget showed that N29,958,865,865,512 is for the military on Operation Zaman Lafiya and the outstanding balance of the Army’s second quarter allocation.
Additional N3,196,089,405 is for the salaries of 72 recruitments, 62 regular combatants and 22 Direct Short Service.
The amount will also cover N1,500,000,000 for All African Games qualification for Rio 2016 Olympic Games, while N5,000,000,000 is for Victim Support Funds (for Boko Haram victims).
The further breakdown showed that N2,000,000,000 is for recurrent adjustment, N10,618,837,435 is for outstanding payment of the severance gratuity and allowances of outgone and incoming legislators and legislative aides.
President Buhari noted in the letter that the Supplementary Bill was premised on 2.2003 oil production barrels per day (bpd), against the initial projection of 2.2782 (bpd) and $48 against the initial $53 per barrel as well as N190 for the Naira exchange rate.
In the letter to both chambers, President Buhari disclosed an upward review of borrowing from N882.12 billion which was proposed by former President Goodluck Jonathan to N1,601.09 trillion.
The President is seeking the approval for a total borrowing of N2,103.21 trillion against the initial N1,041.01 trillion. In the letter, President Buhari said, “Given this new level of expenditure and revenue constraint, the 2015 Budget which had a projected fiscal deficit of N1.041 trillion (or -1.09 per cent of Gross Domestic Product (GDP) with the deficit largely financed by domestic borrowing of N502.1 billion and foreign borrowing of N380.0 billion (total borrowing amounting to N882.12 billion), calls for additional borrowing.
“The expected deficit arising from the above is projected at N.103 trillion (or 2.19 per cent of GDP) to be financed by additional borrowing of N1.601 trillion by the Debt Management Office (DMO).
“Accordingly, I deem it necessary to formally request the concurrence of the National Assembly to please consider and approve an upward review of the fiscal deficit from 1.09 per cent of GDP to 2.19 per cent of GDP.
“An upward revision of the new borrowing from N882.1 billion to N2.103 trillion and new funding requirement to address security challenges and other important obligations in the sum of N465.64 billion”, the President said.
sunnews
