Towing the same path of the federal government to cut costs owing to dwindling oil revenue occasioned by low OIL PRICES, the National Assembly, for the first time in years, has finally agreed to a 25 per cent cut in its annual budget of N150 billion.

By acquiescing to the 25 per cent cut, the National Assembly will shed N37.5 billion of its annual budget, meaning that when the 2015 budget is finally passed, its budget will stand at N112.5 billion.

A source privy to the negotiations between the National Assembly and the executive arm of government told THISDAY on Wednesday that the lawmakers finally agreed to the cut as part of their sacrifice to steer the economy out of the woods following a significant loss of government revenue to falling OIL PRICES.

Prior to their acceptance to slash their budget, the National Assembly’s budget was a no-go-area for the executive, which for years had allotted N150 billion to the legislature even when other MDAs (ministries, departments and agencies) of government were forced to accept budget cuts.

The decision on the cut to the National Assembly’s budget was taken by the lawmakers before the commencement of plenary.

THISDAY had exclusively reported on Wednesday that, while a majority of the lawmakers supported the cut in the National Assembly’s budget, some had kicked against it because they did not want to lose their privileges.

Those who had kicked against the new $52 per barrel oil benchmark as well as the reduction in the National Assembly budget were also said to have demanded that the N50 billion allocated to constituency projects be paid instantly.

In addition to the cut in the National Assembly’s budget, the executive had proposed a 25 per cent cut to the State House budget, and had made cuts to overseas travel and training programmes for public sector workers this year.

Also, the Senate yesterday unanimously reduced the N2.616 trillion proposed for recurrent expenditure in the 2015 budget to N2.5 trillion and simultaneously raised the capital vote from the proposed N633 billion to N700 billion.

The decision followed the presentation and adoption of the report of the joint National Assembly Committee on Finance and Appropriation on the Medium Term and Expenditure Framework presented by its Chairman, Senator Ahmed Makarfi.

The Senate also drastically slashed the subsidy for petrol from the proposed N200 billion to N100 billion and reduced kerosene subsidy from N91 billion to N45.5 billion.

It also slashed the Subsidy Reinvestment and Empowerment Programme (SURE-P) allocation from N102 billion to N21 billion.

In the same vein, the parliament cut the N411.8 billion statutory transfers proposed by the executive to N363.2 and increased non-oil revenue expectations from N3.539 trillion to N4.02 trillion.

The report questioned further the rationale behind voting a whopping N360.9 billion as service wide votes in the budget.

It also queried the allocation of N63 billion for the amnesty programme when the project is actually being financed by the Niger Delta Ministry.
Makarfi also queried the classification of N22 billion as allocation for internal operations of the military under the service wide vote, noting that it should ordinarily be part of the Ministry of Defence budget.

The former Kaduna governor also demanded the proper reclassification of pensions and gratuities under the service wide vote and suggested that the entire service wide vote be completely scrapped, as it was considered an avenue for leakages.

The service wide vote is a major component of the annual budget belonging to ministries, departments and agencies (MDAs) allegedly earmarked for contingencies.

Senators, who spoke on the service wide vote, described the allocation as fake and nothing but an avenue to siphon funds. This allegation, for instance, came against the background that the budget for funding of the amnesty programme is domiciled in the Niger Delta Ministry.

They also argued that the service wide vote window, said to have been created by the administration of President Olusegun Obasanjo, has been used to perpetrate illegality and fraud.

The Senate therefore resolved that henceforth, the votes should be cancelled and allocations under it appropriately directed.

The Senate also formally ratified the $52 billion oil benchmark and EXCHANGE RATE of N190 to $1 for the 2015 budget which it approved at its closed-door session on Tuesday.

In his remarks, Senate President, David Mark, said budgetary allocations should cut across the three arms of government, noting that there is always talk of diversification of the economy at the beginning of every fiscal year without taking any steps thereafter.

“What this clearly shows is that we all have to tighten our belts across the entire sectors of this government. We have for the last several years relied on oil as the main source of our revenue and I know that budget after budget, we say we will diversify the economy.

“Every time this budget comes we will still be repeating the same thing. The impression I get from this is that those who are responsible for producing the draft merely go there and reproduce what they have been bringing up.

“But I think they need to do a little more; they may not be able to forecast accurately. There are a few things I think we must get right.

“The first thing is let there be a cut across board, the executive, the judiciary and the legislature and we are prepared to lead in this. The areas of leakages we must emphasise on them. The revenue generation and collection, we must make sure that we tighten.

“What has impressed me with the entire discussion and debate is the fact that this has been non-partisan. Everybody has been very fair,” he said.

Redoil:
Greed is coming to an end

Montaque:
When our legislatures get this much from the annual budget, is that corruption?
I don't think so.
This is one of our major problem in Nigeria:
Bogus offices,agencies and parastatals with huge financial waste.

ozoigbondu:
This is a good step in the right direction.Oil price is falling and oir economy might fall with it.25% is too small it should be around 65% at least it will reduce the strain on the budget.Their jumbo pay and allowances should be slashed too.
There is also need to cut down on executive spending and maintaince Jonathan should reduce the presidential fleet to at least two,he should also cut down on his aide his media aides alone are about four.The amount spend on feeding should also reduce.
The state governors should also cut down on their number of aides i heard one has 73 reduce the number of cars in their convoy and sell their private jets if they have one at least till the looming economy gloom passes away.They should sacrifice for the people

Meanwhile GEJ till 2019

IYANGBALI:
[s]When elements in GEJ’s government (Okupe, Fayose and FFK) vowed GMB will never become president, do not think they were bluffing. They are working day and night to make this a reality. They have devised several plans which have been neutralized in the past. Thanks to the proactive measures of some patriotic citizens. Please be informed that this government has not relented. New plans are being devised on a daily basis. The new plans are as follows. Please read and share widely. The idea is to let them know their plans have leaked.
Firstly, there are plans in the offing to impeach Rotimi Ameachi by hook or crook in a few days. This is to incapacitate him in many ramifications and as the campaign director of GMB Presidential campaign destabilize GMB’s campaign in general.
Secondly, suspects in prison for the murder of Funsho Williams are being primed to confess they were sent by Bola Tinubu. They have been promised heaven on earth even in prison if they can implicate him. The plan is to blackmail him into submission or at the very least distract him with a nauseous court case. It has been alleged GEJ met him in Badagry when he visited Lagos and tried to convince him to back out from supporting GMB. He was told he is number one on the list compiled by the General of those to be probed once he becomes President. Let it be known to all that Jagaban is under intense pressure at the moment to betray GMB. Lets pray this does not happen. (To be fair to him, he has not succumbed yet)
Nigerians must know the country at the moment is prostrate in a cesspit of corruption dug by a few. It is so humongous; Nigerians will shudder when they know the full details. And GEJ has been taken hostage by the monstrous clique of corrupt people responsible for this mess. Ordinarily, GEJ is willing to relinquish power if he losses. But these corrupt people have planted fear in him that GMB will send him to jail once he becomes President and discovers the level of rot in the system. That is why he is fighting tooth and nail to remain president. This much has been alluded to by General Obasanjo.
We must remain vigilant and be at alert. Do not ever disregard any information at this time. This government is capable of anything to sustain the status quo. They have the resources to accomplish much. The fake Shekau option has been discarded because it was leaked last week. The aforementioned plans among others are the new plans. The ‘ekitigate’ style is still very much on the table. You can see how it was tactically nipped in the bud at the House of Rep sitting last week.
There is still about 4wks to go before the elections. If one hour is a long time in politics you can imagine what 4wks will be. The ‘election will never hold’ plan is still alive depending on the success of their plans to weaken GMB’s campaign and decimate his support base in the coming weeks. If the plans succeed, elections may hold. If it does not, the ING contraption may be employed. Eternal vigilance is the price for freedom!. All eyes must be on this government and even on some elements in APC![/s]

IYANGBALI:
When elements in GEJ’s government (Okupe, Fayose and FFK) vowed GMB will never become president, do not think they were bluffing. They are working day and night to make this a reality. They have devised several plans which have been neutralized in the past. Thanks to the proactive measures of some patriotic citizens. Please be informed that this government has not relented. New plans are being devised on a daily basis. The new plans are as follows. Please read and share widely. The idea is to let them know their plans have leaked.
Firstly, there are plans in the offing to impeach Rotimi Ameachi by hook or crook in a few days. This is to incapacitate him in many ramifications and as the campaign director of GMB Presidential campaign destabilize GMB’s campaign in general.
Secondly, suspects in prison for the murder of Funsho Williams are being primed to confess they were sent by Bola Tinubu. They have been promised heaven on earth even in prison if they can implicate him. The plan is to blackmail him into submission or at the very least distract him with a nauseous court case. It has been alleged GEJ met him in Badagry when he visited Lagos and tried to convince him to back out from supporting GMB. He was told he is number one on the list compiled by the General of those to be probed once he becomes President. Let it be known to all that Jagaban is under intense pressure at the moment to betray GMB. Lets pray this does not happen. (To be fair to him, he has not succumbed yet)
Nigerians must know the country at the moment is prostrate in a cesspit of corruption dug by a few. It is so humongous; Nigerians will shudder when they know the full details. And GEJ has been taken hostage by the monstrous clique of corrupt people responsible for this mess. Ordinarily, GEJ is willing to relinquish power if he losses. But these corrupt people have planted fear in him that GMB will send him to jail once he becomes President and discovers the level of rot in the system. That is why he is fighting tooth and nail to remain president. This much has been alluded to by General Obasanjo.
We must remain vigilant and be at alert. Do not ever disregard any information at this time. This government is capable of anything to sustain the status quo. They have the resources to accomplish much. The fake Shekau option has been discarded because it was leaked last week. The aforementioned plans among others are the new plans. The ‘ekitigate’ style is still very much on the table. You can see how it was tactically nipped in the bud at the House of Rep sitting last week.
There is still about 4wks to go before the elections. If one hour is a long time in politics you can imagine what 4wks will be. The ‘election will never hold’ plan is still alive depending on the success of their plans to weaken GMB’s campaign and decimate his support base in the coming weeks. If the plans succeed, elections may hold. If it does not, the ING contraption may be employed. Eternal vigilance is the price for freedom!. All eyes must be on this government and even on some elements in APC!