2012 budget to generate N9.7t growth revenue – Okonjo-Iweala

[TheNation]

  Dr. Okonjo-Iweala   The Coordinating Minister for the Economy, Dr. Ngozi Okonjo-Iweala, on Monday in Abuja said the growth collectible revenue estimated in 2012 budget was N9.692 trillion.

Okonjo-Iweala, who gave the figure at the 2012 budget presentation organised by the Budget office of the Federation, said that the figure was based on 2.48 million barrels oil production per day.

President GoodLuck Jonathan, on Friday signed 2012 budget of N4.697 trillion.

``The 2012 budget has growth severally collectible revenues estimated at N9.692 trillion based on bench mark oil production of 2.48 million barrel per day and benchmark oil price of $72 per barrel.

The benchmark oil price of $72 per barrel per day was an increase from the original $70 per barrel proposed by the Federal Government.

``This increase of two dollar per barrel by the National Assembly yielded an addition N98.4 billion.

``Out of which N50 billion was used to reduce the deficit and therefore domestic borrowing requirement while the balance was used to increase capital spending.

``Consequently, the total forecast revenue for the federal budget is N3.5 trillion with an oil component of 1.9 trillion and non-oil component of 1.6 trillion,’’ the News Agency of Nigeria quoted the minister as saying at the presentation.

She said that the total expenditure approved in the 2012 budget was comprised of the regular budgetary appropriation of N4.69 trillion.

Okonjo-Iweala said that an appropriation of N180 billion was made for the implementation of programmes and projects under the Subsidy Re-investment and Empowerment programme (SURE).

She said that the personnel cost on the budget was N1.565 trillion, which represented 75 per cent of aggregate expenditure.

``This represents the several wage increases granted in recent times which leads to 93 per cent increase between 2009 and 2012.

``The rising wage bill is disturbing because it undermines our ability to invest in capital projects and when we talk about consolidation over the medium term, this is one of the areas we look at.

``We have statutory transfer of N372.6 billion, capital expenditure of N1.33 trillion, its shared at the percentage of aggregate expenditure increased from 25.6 per cent in 2011 to 28.5 per cent in 2012,’’

She noted that the share of the recurrent had decreased to 71.5 per cent from 74.7 per cent in 2011, adding that the drive to correct structural imbalances in the budget would continue in 2013 budget.



TheNation