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.
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