Nearly four months into the new year, the minister of finance, Olusegun Aganga has warned that the 2011 budget passed by the National Assembly is too unwieldy to be implemented. In a statement that may well lead to another round of quarrel between the executive and the legislature, Mr. Aganga said the only way the federal government can implement the budget is by slicing off a chunk of the fiscal appropriation act recently approved by the lawmakers.

Mr. Aganga, who spoke from London, through his Special Assistant on Media, Okwudili Ojukwu-Enendu, said that the approved budget is too expansionary, and its high levels of deficit and borrowing makes it a risky plan.

"The 2011 budget is supposed to signal the beginning of fiscal consolidation, but we now have another expansionary budget, which is unimplementable. If we are to build our economy on a solid foundation and avoid the boom and bust of the past, it is critical that we embrace discipline in the way we manage public finances. We cannot continue like this.

"I will be advising that we engage with the National Assembly to resolve these areas of concern. We have always had a very good relationship with the relevant National Assembly committees. So, I am optimistic that we can resolve these areas of concern very quickly," he added.

Two concerns in one day

The minister's apprehension is the second such concern raised by a senior federal government official in less than 24 hours, on issues affecting the 2011 budget.

At the end of the 75th Monetary Policy Committee (MPC) meeting in Abuja on Tuesday, the Central Bank of Nigeria (CBN) governor, Sanusi Lamido Sanusi, told journalists that the high expenditure outlay in the budget was not supportive of the Central Bank's drive for monetary policy effectiveness.

"The current fiscal stance (in the budget) is inconsistent with the objective of maintaining stability in exchange rates, prices and interest rates. The Committee, therefore, believes that unless the fiscal stance is reversed, the economy would have to bear a high cost in terms of pressure on foreign reserves, high interest rate and/or higher level of inflation," Mr. Sanusi warned.

On December 15 last year, President Goodluck Jonathan presented a budget estimate of N4.2 trillion for 2011, with a crude oil benchmark pegged at $65 per barrel.

However, last week, the National Assembly in approving the budget proposal discarded the estimates, passing an Appropriation Bill of N4.9 trillion while raising the oil benchmark price from the proposed $65 per barrel to $75.

More money for lawmakers

Iyiola Omisore (PDP, Osun) and the chairman, Senate Committee on Appropriation, who said that the budget was passed after consultations with Ministry of Finance officials, told journalists that during deliberations on the estimates, the executive brought additional proposals of N312 billion to augment key priority expenditures of ministries, departments and agencies (MDAs).

Mr. Omisore was however silent on the reasons that informed the legislators to raise the National assembly's share of the budget from N111.23 billion to N232.73 billion, an increase ofN121.5 billion, or 4.7 per cent of the entire budget. He was also not forthcoming about the additional increment of N433 billion which jerked the final estimates to the N4.971 trillion the lawmakers approved.

Mr. Aganga had warned lawmakers during a budget defence session last month on the implications of tampering with the benchmark figure of $65 per barrel, saying it could spell doom for the economy should the oil price fall below that level during the year, considering that the excess crude oil account (ECA), which is almost depleted, may not be there anymore to augment the budget as was done last year.

Highlights of the budget which was passed on the last legislative day before the Assembly adjourned for the April general elections include N496 billion for statutory transfers; N445 billion for debt servicing; N2.46 trillion for recurrent expenditure, and N1.56 trillion for capital expenditure.

Mr. Ojukwu-Enendu said that it was not clear yet how the matter would be resolved as the President may withhold his assent until the grey areas are cleared or he could sign it and later send a supplementary appropriation bill to the National Assembly to correct the anomalies.

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2.46 trillion for recurrent expenditure while 1.56 trillion for Capital expenditure in a our country where there is virtually dearth of basic amenities in existence? National Assembly increases their Budget by 121.5trillion giving them a total of 4.7% of the total Budget.
PDP must go, Jona is so clueless and these law makers are a bunch of greedy idiots. Change must come to Nigeria 2011. BB all the way.

Whoever votes for the pdp is an enemy of nigeria

So he is now agreeing with Soludo shebi?

So what was all their argument about a couple of months ago?


Hear him:

confetti:

"The 2011 budget is supposed to signal the beginning of fiscal consolidation, but we now have another expansionary budget, which is unimplementable.

So Aganga thought last year's budget was a one-off?

No worry Aganga, welcome to GEJ politics of settlement. The budget will continue to grow as everybody in PDP must be bought off.

Somethings are not just adding up.

confetti:

Mr. Omisore was however silent on the reasons that informed the legislators to raise the National assembly's share of the budget from N111.23 billion to N232.73 billion, an increase ofN121.5 billion, or 4.7 per cent of the entire budget. He was also not forthcoming about the additional increment of N433 billion which jerked the final estimates to the N4.971 trillion the lawmakers approved.[/b]Mr. Aganga had warned lawmakers during a budget defence session last month on the implications of tampering with the benchmark figure of $65 per barrel, saying it could spell doom for the economy should the oil price fall below that level during the year, considering that the excess crude oil account (ECA), which is almost depleted, may not be there anymore to augment the budget as was done last year.

[b]PDP must go, Jona is so clueless and these law makers are a bunch of greedy idiots. Change must come to Nigeria 2011. BB all the way.

May God not let this omisore return to the senate, please who is his opponent in Osun . How can they have 120 billion increase for the national assembly even after Sanusi dissed them on their excessive wages. That money could be used to fix the benin road that is gateway to hell.

Lagosboy:

May God not let this omisore return to the senate, please who is his opponent in Osun . How can they have 120 billion increase for the national assembly even after Sanusi dissed them on their excessive wages. That money could be used to fix the benin road that is gateway to hell.

one major problem with nigerian voters is that we pay little or no attention to senate and house of rep elections, they are so important to our lives and they are the cheapest to win. these guys legislate our lives the way they like, but we don't seem to be concerned how they are elected. na wa, real waa

Some economists have said that Nigeria will not survive another 4 years with a PDP govt. Abeg Nigerians, I am pleading, let us consider what we will tell our children in future if this country goes bust. What did you do to save her?

Vote wisely

confetti:

Iyiola Omisore (PDP, Osun) and the chairman, Senate Committee on Appropriation, who said that the budget was passed after consultations with Ministry of Finance officials, told journalists that during deliberations on the estimates, the executive brought additional proposals of N312 billion to augment key priority expenditures of ministries, departments and agencies (MDAs).

Mr. Omisore was however silent on the reasons that informed the legislators to raise the National assembly's share of the budget from N111.23 billion to N232.73 billion, an increase ofN121.5 billion, or 4.7 per cent of the entire budget. He was also not forthcoming about the additional increment of N433 billion which jerked the final estimates to the N4.971 trillion the lawmakers approved.

2.46 trillion for recurrent expenditure while 1.56 trillion for Capital expenditure in a our country where there is virtually dearth of basic amenities in existence? National Assembly increases their Budget by 121.5trillion giving them a total of 4.7% of the total Budget.

This people have turned Nigerians into dummies, so all the cry about their allowances  have been going through deaf ears. Its glaring, we can see it that this people are mishandling the Nigerian economy but to them its like we are spectators in the soap opera, we can shout and scream at the TV, we can curse the actors when they do something we deem wrong but truly we just talking to ourselves, the actors can't hear us, the soap's course is determined by the script writer. Its time to let them know that we have the power to appoint the scriptwriter. We've been disappointment by too many scenes to let this scriptwriter continue. Except in this case people's life are actually affected by what goes on in the soap.

This is to be expected when you have a conglomeration of failures in government. what can one do where some faulty Nigerians see GEJ/PDP as the messiah