allAfrica.com: Nigeria: Yar'Adua Wants 2008 Budget Cut By N181 Billion (Page 1 of 2)

About three months after a compromise was reached to forward an appropriation amendment bill that would address the reservations of the Executive on the 2008 budget, President Umaru Musa Yar'Adua yesterday forwarded the bill to the Senate and House of Representatives.

The amendment bill is seeking to cut the budget passed and forwarded by the National Assembly to Yar'Adua for presidential assent on March 12, this year, by N181 billion.

The budget, as passed on March 12 consequent upon the review and harmonisation by an ad hoc committee of the Senate and House of Representatives headed by the Deputy Senate President Ike Ekweremadu was N2.748 trillion, down from N2.898 trillion, which the assembly originally increased it to.

The original budget presented to the National Assembly by Yar'Adua on November 8, 2007 stood at N2.3 trillion.

The budget amendment bill, which was agreed to at a meeting between Yar'Adua and the leadership of the National Assembly on April 8, this year, is for an Act to authorise the issue from the Consolidated Revenue Fund (CRF) of the Federation the total sum of N2,567,489,865.645.

Of the amount, N162,570,0-00,000 is for Statutory Transfers, N1,318,675,70-4,987 is for Recurrent (Non-Debt) Expenditure, while the balance of N714,044,160,658 is for contribution to the Development Fund for Capital Expenditure for the year ending December 31, 2008.

The new issue from CRF is N2.567 trillion, while the old issue is N2.748 trillion. The proposed recurrent expenditure is N1.318 trillion, while the old estimate was N1.350 trillion.

The new capital expenditure as proposed is N714 billion, while the old was N845 billion.

Under Statutory Transfer, N78 billion is for National Judicial Council; N40.57 billion is for Niger Delta Commission, while N44 billion is for Universal basic Education Scheme. N306.2 billion is for Domestic Debts service and N66 billion is for Foreign Debts service.

A further breakdown of the estimates shows that N979.249 billion is for recurrent (non-debt) expenditure for Ministries/De-partments/Agencies; N23.634 billion for Federal Executive bodies; N97.325 billion for the National Assembly and N218.466 billion as total Consolidated Revenue Fund (CRF)-including Service-Wide Votes- charges.

Under the CRF Charges, N781 million is proposed for the implementation of Teachers' Salary Structure (TSS) in the Federal Government Colleges, while N16.9 billion is proposed for Academic Staff Union of Universities/Other Unions Agreements.

For Capital Expenditure, a total N582.780 billion is for Ministries/Departments/Agencis; N4.035 billion for Federal Executive bodies; N15.597 billion for the National Assembly, while N111.630 billion is for total capital supplementation, bringing the total Capital Expenditure to N714.044 billion.

Specifically, Yar'Adua reduced estimates in the following sub-heads under recurrent (non-debt) expenditure, thus: Defence/Ministry of Defence/Army/Air Force/Navy from 158.051 billion to N143.172 billion; Information and Communications from N19.683 billion to N15.502 billion; Senate from N34.034 billion to N28.768 billion and House of Representatives from N59.532 billion to N47.148 billion.

He, however, for instance increased the allocation for Justice to N11.757 billion from N10.757 billion.

Yar'Adua also reduced the estimates in the following sub-heads, under capital Expenditure thus: Agriculture and Water Resources from N119.318 billion to N97.626 billion; Information and Communication from N5.250 billion to N2.850 billion; Transportation from N199.589 billion to N103.872 billion; Environment, Housing and Urban Development from N9.773 billion to N6.025 billion.

He cut the Senate budget down from N5.831 billion to N5.0 billion, while he reduced estimates for the House from N9.786 billion to N9.0 billion.

Yar'Adua, in the covering letter, on the amendment bill, dated June 26, 2008 and addressed to the Senate President David Mark said: "I forward herewith, for your consideration, the 2008 Appropriation Amendment Bill."

He said further in the letter entitled: "2008 Appropriation Amendment Bill", which was read on the floor yesterday that "Consistent with the seven-point agenda of our administration, the 2008 Appropriation Amendment Bill focuses on the provision of infrastructure, particularly in the Energy and Transportation sectors and the Federal Capital Territory; as well as Food Security, Defence and Security.

"I firmly believe that this targeted spending proposal will further stimulate economic growth and improve service delivery to our people within the context of a stable macroeconomic environment.

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