With the provision for fuel subsidy in the 2013 Appropriation Bill, Nigerians have cause to smile in the New Year. However, the subsidy regime is expected to continue in 2014 at a reduced scale.
The palliative gulped N888 billion this
year, according to the 2013 budget details released in Abuja yesterday.
President Goodluck Jonathan is expected
to present the estimates of N4. 361 trillion budget to the National Assembly
before the end of this month, it was learnt.
In the 2013-2015 Medium-Term
Expenditure Framework (M-TEF) and Fiscal Strategy Paper (FSP), a copy of which
was obtained by Daily Sun, the Federal Government said that its share of
subsidy for 2013 will be N409, 772 billion For the next two years spanning
2014-2015, the government said that it would spend N274, 269 billion and N211,
108 billion respectively.
Revenue projection (net of subsidy) for
2013 will be N3.891 trillion, but government expenditure is expected to rise in
2014 to N4.257 trillion and NN4.5 trillion in 2015. An estimated N261 billion
was returned to the treasury as unspent funds while the 2013 budget of the
National Assembly, incorporating the National Assembly Service Commission
(NASC) and the National Assembly administration remains unchanged at N150
billion. The National Assembly budget equally remains unchanged for the 2014 and
2015 fiscal years.
Capital expenditure for 2013, based on
projections in the M-TEF and FSP is N1.524 trillion while recurrent expenditure
is N2.411 trillion. The balance is made up of statutory transfers including
allocations to the National Judicial Commission (NJC), Niger Delta Development
Commission (NDDC), Universal Basic Education (UBE), Independent National
Electoral Commission (INEC), National Assembly (NASS) and the National Human
Rights Commission.
Of the recurrent expenditure for 2013,
personnel costs for Ministries, Departments and Agencies (MDAs) will gulp
N1.741 trillion while overheads are estimated at N230.305 billion. Other
service votes will gulp N272.820 billion. Explaining the details, the
government said: “In the light of the contemporary global uncertainty and in
line with the goal of ensuring macro-economic stability which is encapsulated
in the Transformation Agenda, government will sustain its strategy of fiscal
consolidation with growth by which efforts to correct the structure of the
expenditure profile will be fostered. “Indeed, recurrent expenditure is
expected to maintain its decreasing trend, by increasing the fiscal space for
capital expenditure.
“In line with the Transformation Agenda
and in furtherance of the policy objectives of the 2012 budget over the
2013-2015 period, key sectors of the economy will remain the focus of this
administration. “These include security, power, agriculture, water resources,
health, education, works, transport, aviation, Federal Capital Territory and
Niger Delta. “By investing in these sectors, government intends to reduce the
infrastructural gap, thereby energizing the economy so as to create employment
and ensure that we have inclusive growth.” The M-TEF and FSP stated that
“although aggregate expenditure is increasing in absolute terms,” government’s
goal is that its expenditure as a share of the Gross Domestic (GDP) in the
Nigerian economy is to reduce in the medium to long term. “This is in line with
the desire to promote the private sector.
The reduction in the size of government
will be achieved through stricter rationalization of available resources
including sustaining the reduction of overhead votes. “The figure for overhead
decreased from N536 billion in 2010 to N266 billion in 2012. It is expected to
further decrease in 2013 to N230 billion or 4.67 percent of total expenditure.”
On the domestic debt, the document details that as at June 2012, “total
external debt stock stood at $6 billion. The Federal Government’s share of this
was $3.8 billion (63.3%), while the 36 states and FCT accounted for the balance
of $2.2 billion (36.7%). “Similarly, domestic debt for the same period stood at
N6.15 trillion, bringing the total debt to N7.11 trillion which is 17.8% of the
GDP.”
In a covering letter addressed to
Senate President David Mark, President Jonathan expressed “gratitude for the
enduring partnership between the legislative and executive arms of government
in discharging our shared responsibility for nation-building. “I note with
thanks, the patriotism, commitment and support that distinguished Senators have
consistently demonstrated. Pursuant to sections 13, 12 and 11 of the Fiscal
Responsibility Act, 2007, the preparation towards submission of the 2013 budget
to the National Assembly has since commenced with activities leading to the
preparation of the 2013-2015 M-TEF and FSP.” The President urged the National
Assembly to consider and approve the document in its usual expeditious manner.
Source:
Sun
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