Niger increases 2012 budget by 52.7 percent

Niger's President, M. Issouffou

Niger increases 2012 budget by 52.7 percent

Niger's government has adopted late on Friday a 2012 budget of 1.425 trillion CFA francs, 52.7 percent more from the previous year as defence spending rises to deal with fallout from the Libyan conflict.

The government said in a statement on Niger's state television that the budget gives priority to securing its Sahel region and tackling the country's food crisis.

"The general budget of the state in the year 2012 is balanced in revenue and expenditure at 1.425 trillion CFA francs, thus showing an increase of 492 billion CFA francs, or in relative terms, 52.7 percent compared with the 2011 budget," the statement said.

Niger's perennial food shortages

Niger which is at the edge of the Sahara desert has called for international help to secure its northern border with Libya.

It fears weapons looted from Libya's armory could be brought through the country's porous nearly 600 km border and used to destabilise countries in the region.

Niger, which faced a rebellion in the north from 2007-2009, said it needed help with intelligence-gathering and aerial surveillance of some six million square metres of desert in its north, already a base for al Qaeda's North African wing and for bandits.

The government said it would also increase spending on agriculture to deal with Niger's perennial food shortages and improve infrastructure including rail, electricity supply and roads.

Libyan conflict

The statement said the government plans to raise 61.3 percent of the budget or 872.7 billion CFA francs through internal revenues from petrol and mining.

Already a top uranium producer, Niger will pump the first oil from its estimated 650 million barrels of reserves in the first quarter of 2012.

The government said the remaining 38.7 percent of the budget would come from grants and budgetary aid from donors.

The International Monetary Fund has said it expects Niger to maintain economic growth in 2011 as oil and mining activities expand, despite a slight contraction in agricultural output and a decline in remittances, largely due to migrant workers fleeing the Libyan conflict.

Reuters/Iheanacho