tit:



jonathan might not be an angel,
but buhari is a demon!
do not invite demon into your life.

I believe that you are aware of the negative impacts of Johnathan system of government, but for selfish reasons you decided not to speak the truth. You must be a very wicked fellow. The evil that you support will one day align with you.

Its not like we're going to be looking hawkishly over the budget throughout 2015, waiting for it to fall below the benchmark price of oil before we borrow. Since the current price of oil is already close to the benchmark, the government would have already concluded plans with creditors to borrow next year. So our debt profile is certainly going to rise next year, not probably.

DeKasablanca:


Simple?! This is more confusing than the garbage my economics teacher spews three periods a week. The first paragraph muddled my brain. Though I suck @ all things related to economics. Except, you kno, the spending money aspect. Then I shine bright like a diamond!

dont make ur neuron system crash while tryin t understand dis economical jargon,my advise simply is do sumthin less taskin 2ur brain like bein much more active in d romance section.....that would help u a great deal.... Coz political economix isnt meant 4 kids like u unless u are a genius on ur own

Goodluck Jonathan............the great Retardinho.

Thanks @op for this piece.
Can you please give us the breakdown of the recurrent expenditure by percentage?
To make it more comprehensible,we will also need you to do a little more,just compare it with income and expenditure during the last five years of Obasanjo so as to make it clearer to people on who to support in coming elections.
If Capital expenditure is 9% in 2015 and oil stays below $60 a barrel it means apart from borrowing to fill the income gap of proposed $5 a barrel shortage, all the promises the President GEJ is offering Nigerians won't be fulfilled because even if he sincerely want to do them,there won't be money to do them.
please give us allocation by value and percentages to
The Presidency
National Assembly
Civil servants salaries
Civil servants trainings and developments
Fighting insurgency I.e BH
Niger Delta Amnesty program
Sure P
The future of this country is in question if the current system should continue
Thank you.

olatunji21:
How do u define a govt who have jst increased its feeding allowance from a billion to 4bn
How else do u describe a govt that's planning to buy another aircraft in spite of the duelling oil revenue and economic challenges
How else do u define a govt with a whooping 91% for Re-current expenditure
How else do u define a govt whose head said "Common Stealing, you call it corruption"
How else do u define a govt whose economic performance is looking so good on paper but its not reflecting on the lives of the people"
How do u define a govt who have Created more Billionaires than others..
Lets vote for change..
Nigeria has potentials, we can do alot better than this
vote GMB 2015
Vote Change

how else will i define GEJ GOVT? if not ABSOLUTELY CLUELESS, then it is UNREPENTANTLY AND WICKEDLY ANTI-PEOPLE

is this a PHD thesis?

Lachynos2k2:
shut up you apc monkey ..what do u know about corruption? u expect gej to use only four yrs to repair all damages caused by our past leaders over for over 30 yrs..it seems ur jux waking up from 30yrs long sleep.

as you pray for things to remain the same so may your spiritual and financial life!!!!! oya say amen!!!!!!! what has APC got to do with this!!!? when some one is displaying stupidity of the highest order you blame it on the opposition

dollarsplenty:


how else will i define GEJ GOVT? if not ABSOLUTELY CLUELESS, then it is UNREPENTANTLY AND WICKEDLY ANTI-PEOPLE

totally anti people.

I hate Gej govt with passion for wasteful spending and monumental corruption but I think they cannot do beyond this in this situation else, the economy will colapse.

bigmo1:

Your fada is so dumb, he drinks water with a Bleep.

thats d problem with APC, nothing to present only insult. it changez natin #GEJTILL2019 go drink acid.

zheroes:
kindly prove it, atleast we know jonathan isnt an angel.

Who campaigns with a spear?
Its no wonder there was serious violence after he lost.

Reddit:
Posted By CHUBA EZEKWESILI
on December 29, 2014

The theme of 2014’s Budget was ‘inclusive budget’. Whether it was indeed inclusive or not is debatable. Given the current economic climate, 2015’s budget radically departs from that narrative – it is barely inclusive. This is bad, but there’s good news…The proposed 2015 budget is one largely based on faith; so given our religious propensity, we should be quite familiar with it. Fret not, you’ll need that faith when you understand the composition of our 2015 budget.

Wait First. What Exactly is This Budget Thing?

For those who know, feel free to skip this. For those that don’t, you’ll need this part to understand the ‘wisdom’ of Nigeria’s 2015 budget. A national budget is simply an estimate of a government’s anticipated revenue and expenditure during the year. The Nigerian Government plans to spend N4.3trillion in 2015.

The budget consists of two major parts: the recurrent and the capital cost. Recurrent consists mainly of expenditure on wages, salaries and statutory transfers, purchases of goods and services, and debt service. Clearly, recurrent cost keeps the Government running and the civil servants happy. This is great for those in Government, but for the overall economy and the people, the benefits are negligible. To the economy, recurrent cost is like when that Uncle comes during Christmas to give you money for biscuit and sweet. You spend it and that’s the end. The effects are direct, but neither long lasting nor inclusive.

Capital expenditure typically consists of infrastructures such as bridges, hospitals, schools, etc. It’s through capital expenditures that infrastructure and other critical services that touch majority of the people are provided. The only way you’ll directly feel the impact of the budget as a citizen is through the capital expenditures – not monetarily, but through an improvement in quality of living. Capital expenditure is like what your mother spends on your education – you might not appreciate it, but it goes a long way.

So What Does the Budget Have to Do With This Austerity Thing We Keep Hearing About?

Austerity measures are policies used to tighten government expenditure, close loopholes that cause revenue losses and a gross reduction of budget deficits during adverse economic conditions. Why does Nigeria need austerity measures? Nigeria is kinda broke due to falling oil price. You can read more on how we got into this mess here.

Austerity measures are created to ‘trim the fat’ of government, so money goes to crucial areas that encourage economic development. This means that recurrent costs like high wages and salaries, duplicate workers, unnecessary spendings on travels and new goods get cut.

Ohhh. So The Budget Should Ideally Spend More on Capital Than on Recurrent, Right?

Well…not exactly. In fact, not at all. For all the talk about austerity measures, Nigeria’s recurrent cost rose. The budget showed that Recurrent Expenditure takes 91% of the budget, rising from N2.468tn to N2.616tn.

Spending more on Capital cost than recurrent might be the most economic prudent decision, but it never happens. Even in the good old days of higher oil revenue, Capital expenditure suffered. Capital expenditure dips from N1.55tn in 2014 to N387bn in 2015. That’s from 24% to 9% of overall budget. Sadly, capital expenditure is like the unappreciated house-help that does all the work and yet doesn’t get Christmas clothes.

Governments find cutting capital costs easier cause there’s little direct impact on the pocket of citizens as compared to cutting recurrent cost. The Nigerian Government is one of the largest employer of labor in the country, so it would be politically suicidal to go on a firing spree during this election period. Moreover, it’s simply hard to get the same people setting their wages to cut it down. Also, with a new presidential private jet and the usual 150 billion for the National Assembly included in the 2015 Budget, it seems the angel of austerity spared top Government officials just like the angel of Death spared the Israelites in Egypt.

In the short run, it might be the easier and more politically-expedient move to sacrifice capital expenditure on the altar of recurrent cost, but its not the smartest move. The overall health of the economy suffers from this move. It’s like your mother spending on your Christmas cloth rather than keeping money for your January school fees. It’s sweet now, but painful later.

So How Does the Government Plan to Fund the Budget?

A budget is only as useful as the amount you have. If you like, write a long list, when you go to the market with only N10, you’ll only come out with pure water. Similarly, with our falling oil revenue, Nigeria desperately needs to find money from other sources. Nigeria plans to sponsor the budget with oil revenue and make up the rest of the revenue by diversifying its non-oil revenue sources, and broadening and updating its sources of tax receipts.

This is the part where the budget’s theme goes from ‘austerity budget’ to ‘faith budget’. Nigeria’s budget benchmark is set at $65 per barrel, however, the price of oil is currently at $59 and could fall further. In fact, Saudi Arabia has their 2015 budget benchmark at $60. They’re obviously less optimistic than we are. If they’re right, it means we’ll make less money than we’re expecting. It’s like buying the iPhone 6 on credit, only to find out that your dad gave you money for a Techno phone.

There’s also a tad bit too much optimism on the non-oil revenue front. The Federal Government expects to bring in N1.68tn for 2015. Given that revenue generated in 2013 was N1.07tn, our 2015 target might be a bit too optimistic. Perhaps if independent revenue agencies and MDAs get squeezed, we could pull in N1.2tn. Remember, this is also by faith.

Also, increasing taxes should bring in some money. The tax on luxury items such as private jets, luxury yachts, luxury cars, business and first class airline tickets, champagnes, wines and spirits adds to N10.56 Billion in a year. I’m uncertain how much it does, but just for some perspective, N21 Billion was donated to the President’s election campaign in one night.

So What Happens If the Revenue Doesn’t Add Up?

When this happens to a Government, the next step is typically to borrow in order to cover the budget cost. If oil prices stay below $65 per barrel, we shall borrow. If our volume of crude oil sold falls below our target, ‘borrow borrow’ will continue. And if we do not meet our quite optimistic non-oil revenue target, we will continue borrowing. Our domestic debt has risen from N4.55trillion in 2010 to N7.65trillion as at September 2014…and things were still a bit economically smooth back then.

Yes. That’s a lot of borrowing. The Government knows this and has tried to stem it. After the curtailing of international travels, reduction of procurement and upgrade of buildings, and a partial implementation of the Steve Oronsaye report, the Government will save N82 billion next year. Aunty Ngozi try small, but a glance at the composition of the budget still ‘dey turn belle.’

So What’s The Implication?

The budget report mentions several government efforts at diversification of revenue, but the act of slashing capital expenditure introduces a conundrum. For us to increase our non-oil revenue, we must diversify. However, diversification of the economy can only occur if capital spending is high, not when you slash it – which is exactly what we’re doing.

The budget depicts the future economic plan of a government for its country. If so, then Nigeria’s proposed 2015 budget goes a step backward into our past to highlight our addiction to extravagantly large governments and our nonchalance for strategic long-term investment.

We’ve treated the economy the same way we treat our roads. We wait for it to have huge potholes, then kill a bus load of (preferably prominent) people before it gets fixed. Meanwhile, those who drive down the road do so by faith, hoping not to get killed. Currently, we’re staring at the potholes littering our economy’s future and there’s need to not only avoid them, we’ve got to fix them. This 2015 budget might just optimistically dodge these holes, but it’ll do little to fix them. Merry Christmas and a Happy New Year to all! With a budget like this, you’ll need all the happiness you can get in 2015.

NB: I’m sure there’s a legitimate reason the budget presentation looks like a cake…

Source

How do u define a govt who
have jst increased its
feeding allowance from a
billion to 4bn
How else do u describe a
govt that's planning to buy
another aircraft in spite of
the duelling oil revenue and
economic challenges
How else do u define a govt
with a whooping 91% for
Re-current expenditure
How else do u define a govt
whose head said "Common
Stealing, you call it
corruption"
How else do u define a govt
whose economic
performance is looking so
good on paper but its not
reflecting on the lives of the
people"
How do u define a govt who
have Created more
Billionaires than others..
Lets vote for change..
Nigeria has potentials, we
can do alot better than this
vote GMB 2015
Vote Change

the write up is legen... wait for it ..dary!!!

abeg make una leave recurrent expenditure o cause i be federal worker abi una want make dem sack me.

abeg make una vote gej o, i no trust buhari.

Excellent post.

Please everyone, remember that the present Government is filled with both APC and PDP members and we are still heading to this mess. So stop fighting over parties and start demanding from your Senators, Governors, Representatives, to perform.

As for me, I'm going to vote for the person that shows me clear plans for Health, Economic Growth, Education, Power and Sustainable Development.Not story, because this budget shows that the present Govt (filled with APC and PDP members) is still thinking of their comfort than the future of my children, your families and our parents.

As you keep fighting, please know that Oil and Gas companies are quietly retrenching staff, closing down offices and refusing to pay salaries. Please know that Banks have unsustainable growth and are refusing to hire extra new staff, preferring experienced people who they can make work 2 jobs yet pay one salary to. Even my company is slashing salaries and making their in-house retail sales teams marketers and putting new staff on contract basis. Schools are either increasing their schoolfees or demanding parents to pay up their wards' fees by January 5, 2015 (they even sent texts every 3 days demanding payment for a term no child has started). Prices of everything has increased (try buying a phone) and some importers are asking clients to pay in dollars if they want the former lower price. A lot of state govt workers like schoolteachers and doctors haven't been paid for at least 2 months.

And this budget shows that no-one in govt is planning on at least fixing infrastructure and power so we can stop importing everything, start manufacturing (not assembling) and create skilled jobs (not factory jobs where you can be substituted for a cheaper worker one day). And we need to produce Agriculture enough to crash food prices locally first, we cannot feed our country cheaply, yet we want to export on a large scale.

So 2015 is going to be bloody financially.

Neither candidate (Buhari or GEJ) has done enough to convince me to vote. I will rather use my time to worry about myself next year than waste it screaming "APC, PDP". Those guys couldn't care less about me.

This country don suffer under the watch of the clueless GEJ. May God save us 4rm the doom ahead. Vote 4 change! vote APC!! Vote GMB!!!

IF apc wins the elections and that's a big IF,I think an astute indiVidual like Fash should be put in charge of the nations finance,but with the current oil prices and campaigns for substitute to oil this budget of faith is kinda doomed and we wud hav no choice but to keep borrowing.
Nigeria shud be careful and plan ahead because oil might just be going down the part of coal when technology discovers a better and more abundant substitute.

I think the fall in oil price should be enough to convince the government that this overreliance on crude oil has to stop.We need to start putting more efforts into increasing revenue from other sources, especially , Agriculture.If the austerity measures being taken were to include shaving-off the salaries and entitlements of public officials,it still wouldn't provide enough fund to finance capital projects.Instead of concentrating efforts on reducing recurrent expenditures, we should try to ,reasonably, increase revenue from other existing sources and also identify possible sources of revenue that are yet to be exploited.

Our domestic debt
has risen from N4.55trillion in
2010 to N7.65trillion as at
September 2014…





Under clueless jona watch, our future is sold into financial slavery to debt.

Who is more wicked than this GEJ.

Bro U just made my 2014..i've never 'liked' a post on NL before,but this definitely deserves one..kudos!

Onegai:

So 2015 is going to be bloody financially.

Neither candidate (Buhari or GEJ) has done enough to convince me to vote. I will rather use my time to worry about myself next year than waste it screaming "APC, PDP". Those guys couldn't care less about me.

Please do not hold on to your vote.
That would be the worst option of the many possibilities you have

For the presidential, you can determine the LESS bad of the two options based on antecedents in works & words.
There are also the


- senate
- representative
- governor
- state assembly lawmaker


that also need to be determined by that your singular vote.
Please I encourage you to seriously reconsider your stance and not just get out & vote but convince (and if necessary drag paapa) others to also exercise their franchise

The more of us who do not vote the greater the chance for rigging, manipulation and emergence of candidates who would feel LESS indebted to us and more indebted to the GODFATHERS who ensured their victory through those mechanisms we all decry.
Why should you or anyone you know want that to happen
Why would you allow yourself to make their crooked life easier while making that of fellow Nigerians even more difficult?


Please feel free to share so we mobilise ourselves more to get better engaged in our politics.
That is the BEST choice to make!!!

Sowl:

dont make ur neuron system crash while tryin t understand dis economical jargon,my advise simply is do sumthin less taskin 2ur brain like bein much more active in d romance section.....that would help u a great deal.... Coz political economix isnt meant 4 kids like u unless u are a genius on ur own

That sounds like an insult nicely packaged in a compliment.

One nigeria is the root of all problems in this country.

nigerians lack abilities and capacities to build sensible country.

DeKasablanca:

That sounds like an insult nicely packaged in a compliment.

I can bet my new year Eve's booze there wasn't any compliment in that package.

BEST WRITE UP!! nyc one... I must say

aceTS:

I can bet my new year Eve's booze there wasn't any compliment in that package.

You're in what level in the university?

Perfect and precise piece of work @op...
Well on d issue of our economy we have always concentrated on d present witout acknowledging the fact that the future is at hand.Short term plan has always been our syndrome as a nation lets retrace it and embrace a plan that wud address the present and fit into d forseeable future..

it makes sense to cut capital budget in 2015 since its an election year, more to recurrent and less to capital. if Oga boko Haram GMB mistakenly enters, he will not pay contractors for jobs done. for him eye, everything na corruption.

but God no go let am.

anonimi:


Please do not hold on to your vote.
That would be the worst option of the many possibilities you have

For the presidential, you can determine the LESS bad of the two options based on antecedents in works & words.
There are also the


- senate
- representative
- governor
- state assembly lawmaker


that also need to be determined by that your singular vote.
Please I encourage you to seriously reconsider your stance and not just get out & vote but convince (and if necessary drag paapa) others to also exercise their franchise

The more of us who do not vote the greater the chance for rigging, manipulation and emergence of candidates who would feel LESS indebted to us and [color=#000000]more indebted to the GODFATHERS[/color] who ensured their victory through those mechanisms we all decry.
Why should you or anyone you know want that to happen
Why would you allow yourself to make their crooked life easier while making that of fellow Nigerians even more difficult?


Please feel free to share so we mobilise ourselves more to get better engaged in our politics.
That is the BEST choice to make!!!

IN RED "THE DOG AND THE BABOON WILL BE SOAKED IN BLOOD IF I DON'T WIN" Vote wisely my bro
CONTINUITY TILL 2019

This is the longest post i have ever read on nairaland.
It was as objective and explicit as what i cant describe, op didnt throw stones at any APC or PDP he just explained things the way it is

Please MODs, more of this inciteful posts are on NL, please promulgate them.
This wat we need to refresh brains abeg.

tit:



jonathan might not be an angel,
but buhari is a demon!
do not invite demon into your life.

Describe Jonathan then. And do so without thinking with your moniker