Jonathan signs 2012 budget

[TheNation]

  President Jonathan  President Goodluck Jonathan has signed the 2012 appropriation bill into law after what he called extensive discussion with the leadership of the National Assembly over some grey areas in the budget passed.

 The budget has an aggregate expenditure of N4.697 trillion. This however excludes the N180 billion appropriated for programmes and projects encapsulated under the Subsidy Reinvestment and Empowerment-Programme, (SURE-P).

The total Federal Government revenue forecast is N3.561 trillion based on a Benchmark Oil Price of $72 per barrel, which is $2 higher than the initial proposal of $70 per barrel.

The president's assent is coming barely a month after the budget was passed by the National Assembly.  This is the first time in recent time that budget passed is assented to within a month of its passage.

It would be recalled that the president submitted the budget to the National Assembly on December 13, 2011 and it was passed by the two chambers on March 15, 2012 with an upward review of the benchmark oil price from $70 to $72 per barrel.

However, the president demanded for clarification over some grey areas such as the inclusion of SURE-P fund into the main budget and also the rationale behind the increase of the pegged crude oil price from $70 per barrel to $72 and also the allocation of more funds to MDAs.

The 2012 budget consists of capital expenditure of N1.34 trillion and recurrent expenditure of N3.357 trillion.

 The Capital Expenditure is 28.5 percent of the aggregate expenditure.

Speaking after signing the bill, the president said it was after extensive discussions with the National Assembly that the ceremony is holding, saying it is a budget of fiscal consolidation.

“We have had extensive discussions with the National Assembly since then, and the result is the budget that I now have the honour of signing into law today. It is a budget of fiscal consolidation, inclusive economic growth and job creation," he stated.

President Jonathan also explained that the additional resources from the increased price of crude oil "were used to increase the capital expenditure and to reduce the deficit to a manageable level that we can finance without excessive borrowing."

  He noted that one of the main goals of this administration is to complete and exit the large stock of ongoing projects and programmes.





TheNation