 Nigerian Senate starts deleberations on budget
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Nigerian Senate begins consideration of budget 2012
Obiora Ani and Hauwa Noroh Ali, Abuja
The Nigerian Senate has commenced the consideration of the general principles of the over 4.749 trillion Naira 2012 budget presented to a joint session of the National Assembly by President Goodluck Jonathan on Wednesday.
Leading the debate, the Senate leader, Victor Ndoma Egba, said the 2012 budget proposal was on achieving macro-economic stability, structural reforms, governance and institutions and investing in priority sectors.
He added that the budget was structured to improve on the gains of the 2011 budget in addressing effective critical areas of the economy notably, Security, Power, Education, Health,Agriculture and Aviation.
In their contributions, many of the lawmakers stressed the need for the President to present the Appropriation Bill early enough to enable them do thorough work on the budget.
Consultations on Fuel Subsidy
Meanwhile, Dr Ngozi Okonjo-Iweala, Coordinating Minister
for the Economy, says President Goodluck Jonathan is still consulting with
relevant stakeholders to take a decision on the issue of fuel subsidy
removal.
Dr Okonjo –Iweala told newsmen in Abuja that ``The president is consulting widely, he makes the final decision, he is talking to stakeholders all over the country and at the appropriate time he will make the decision.’’
She said that the 2012 budget was the new agenda for the transformation of the Nigerian economy.
The Cordinating MInister for the economy and Minister for Finance said that though the theme of the 2012 budget is "fisical consolidation , inclusive growth and job creation ", it can also be christened the "action" budget because it is focused on clearly defined and achievable targets designed to grow the economy and improve the welfare of Nigerians in a measurable way .
"This is a serious budget with a serious purpose which will be implemented with a serious approach. Nigerians are tired of talk and so are we. That's why the budget is all about action in the areas that matter to Nigeria. There is no big grammar in this budget”.
"This budget should be the budget of every Nigerian. Let us put aside our fears aside for a moment and own it. Nigeria's have a role to play in the implementation and monitoring of the budget, ,Nigerian's need to hold the government accountable and as such information will be given regularly on d budget to Nigerian's. So I think every NIgerian should get involved and own it as their budget."
Budget implementation
She said that the budget was not focused on one year but on medium term
framework, noting that the structure of the budget would continue till
2015.
``By 2015, we are going to reducing the recurrent expenditure from 74 percent and the structure of the budget steadily down and we hope to get it
back to where it was six years ago at 67-68 per cent.
``So it’s not just looking at this one year but we are setting a base and I
think that is what should be monitored. ‘’
The minister said that the 2012 budget would focus on four pillars which
include Macro-economic stability, structural reforms, governance,
institutions and investing in priority areas.
She said that areas were identified to help achieve fiscal consolidation,
inclusive growth and job creation.
To achieve the set objectives, she said Government had already started
taking the bio-metric data of civil servant to weed out ghost pensioners
and workers to bring down the amounts being spent in such areas.
Okonjo-Iweala noted that agencies with over lapping functions would be
restructured to help reduce the recurrent expenditures.
``We will be looking at commission and committee to see if their mandates
still obtain years after they have delivered whatever function they were
supposed to deliver.
`` It is still valid to keep them alive, we are talking of restructuring of
some part of the government to yield the result we projected into the
medium term.’’
Economic reforms
She noted that to reduce domestic debt profile, which currently stands at
16.4 per cent, more attention would be paid on revenue generation.
This, she said, would involve blocking leakages, improving corporate tax
collection and boosting internally generated revenue.
Others, she noted, include completing of viable ongoing projects,
progressing the privatisation of the power sector in line with the power
road map, passing the Petroleum Industry bill, investing in critical
infrastructure, among others.
Commenting on the deadline for the 2011 budget, the coordinating minister
for the economy said the financial year ends by Dec. 31 and all unspent
funds must be returned to government.
``We are preparing to close the financial year, and resources not used by
the end of the financial year will be remitted back.
``This is the best practice internationally and we are going to do
that.’’
Ugo
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