Headlines Nov 25, 2009

By Gabriel Omoh, Emmanuel Aziken & Inalegwu Shaibu
ABUJA — INFRASTRUCTURE development topped the Federal Government’s agenda in THE Capital Expenditure of the N4.07 trillion budgetary proposal for 2010 laid separately before the Senate and the House of Representatives yesterday.

It was the first time since the commencement of the Fourth Republic that the sitting President did not perform the formality of personally laying the government’s financial plan before the National Assembly. It was also the first time that the two chambers separately received the budgetary proposals.

Special Adviser to the President on National Assembly Matters, Senator Mohammed Abba Aji performed the brief ritual in the two houses. He was welcomed into the Senate chambers at 11.28 a.m. after the Senate invoked order 17 of its standing rules to allow him and the Special Assistant to the President (Senate) Dr. Cairo Ojougboh into the Senate chambers.

Five minutes later, Abba Aji laid the budget estimates on the Senate table and bowed twice before taking his leave. He immediately proceeded to the chamber of the House of Representatives where he performed the same ritual, followed this time by Alhaji Ibrahim Zailani, the Special Assistant to the President (House of Representatives.)

The proposed spending is 32 per cent higher than that of 2009 and, if approved, will push Nigeria even further beyond a 3 per cent deficit target set under a 2007 fiscal responsibility act.

Around a third of the planned budget is non-recurrent spending targeting areas including critical infrastructure, the power sector and development in the Niger Delta, the restive heartland of the country’s mainstay oil industry.

“The purpose of the 2010 budget is to accelerate economic recovery through targeted fiscal interventions intended to further stimulate the economy and support private sector growth,” Yar’Adua said in a budget statement presented to the lawmakers.

The statement said N1.37 trillion was budgeted for capital expenditure and N2.011 trillion for recurrent, non-debt expenditure. The spending plans for the country, which vies with Angola as Africa’s biggest oil producer, assume oil output of 2.088 million barrels per day (bpd), a benchmark oil price of $57 and an exchange rate of N150 to the U.S. dollar.

Yar’Adua said improving power infrastructure was a top priority and that Nigeria aimed to double electricity capacity to 10,000 megawatts (Mw) by the end of 2011. Intermittent power supply is seen as a major blow on economic growth.

Yar’Adua said the utilisation of budgetary allocations for 2009 had been “below expectations”, raising questions about how effectively government would spend the additional funds.

Out of the N4.07 trillion budgetary proposed expenditure for 2010, N1.37 trillion is earmarked for capital expenditure, N2.011 trillion is proposed as recurrent expenditure, N517.071 billion is proposed for debt servicing and N180 billion is allotted for statutory transfers. Among the beneficiaries of the statutory (first line charge) are the Niger Delta Development Commission (NDDC) N35.6 billion, the National Judicial Council, N91 billion and Universal Basic Education, N44.3 billion.

Another N9.3 billion is earmarked as the NDDC’s share of excess crude distributed in 2009.

The National Assembly has an allocation of N127.7 billion in the budgetary proposal for the 2010 financial year.

Sectoral allocation

Details of the budgetary estimate further show that the highest sectoral allocation was given to the Ministry of Works with N249.4 billion followed by Education with N249.08 billion; Defence N231.99 billion; Police Formation N216.4 billion; Health N161.84; Federal Capital Territory Administration N158.00 billion; Power N156.8 billion

The Ministry of Niger Delta Affairs has an allocation of N64.3 billion while the benchmark for oil revenue is fixed at $57 per barrel and the exchange rate for the dollar is N150 to the dollar.

The Senate is expected to commence debate on the budget today.
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http://www.vanguardngr.com/2009/11/2, plan-for-2010/