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Tag: 2017 budget

  • 2017 budget: FG orders MDAs to submit budget through web portal 

    2017 budget: FG orders MDAs to submit budget through web portal 

    As the 2017 budget preparations kicks off, all Ministries, Department and Agencies (MDAs) of government have been directed to submit their budgets to a designated web portal domiciled in Budget Office.

    This is a departure from the old practice of MDAs submitting their annual budgets through flash drive to the Budget office. This new development is to avoid hitches of 2016 budget creeping in to next year’s budget while the budget office will review it on line and send it back on line after corrections have been effected.

    This disclosure was made by the Minister of state in the Budget Ministry, Mrs. Zainab Ahmed Thursday in Abuja. The new process of submitting budget by MDAs, the minister added, was designed to limit human interface and ensure better quality 2017 budget.

    She also disclosed that the federal government has achieved 41.25% in 2016 budget implementation as of October 2016 with a total disbursement of N2.5 trillion.

    Speaking in an interview with financial journalists in Abuja at the 2nd presidential economic communications workshop, the Minister also confirmed that the 2017 budget is ready but the executive is waiting for the approval of Medium Term Expenditure Framework (MTEF) currently in the custody of the National Assembly for approval.

    According to her, “we planned 2017 budget very carefully by putting in place an IT system that minimizes human interface in the budget process to make 2017 Budget a very high quality budget. We now have a web portal where by ministries prepares their  budget and submits on line and the budget office reviews it on line and send back via  online where corrections would be made. This will reduce significantly the human interface to ensure we have a high quality budget.”

    She said the executive arm was ready with 2017 budget, but   waiting for the National Assembly’s approval of MTEF before   its submission   to the National Assembly.

    With regards to the current budget, the minister said the 2016 has been very challenging to the federal government in terms of revenue receipt and budget implementation.

    According to her, “it’s been very challenging for us. Apart from the fact that we are in recession, we have some of our people facing humanitarian crisis in the North East.  The Niger Delta crisis has pruned down revenue from oil and gas. We have a lot of projects that we planned to do but the revenue yield is not as we projected in the budget and this is largely due to vandalism of major oil infrastructures in  Niger Delta region.  We have minimal revenue but we have a lot of plans to share and allocate resources”, said Mrs. Ahmed.

    On what has been disbursed from the 2016 budget, she said the, federal government has released about N2.5 trillion of N6.06 trillion 2016 budget. Of the releases, she said N753 billion is for capital projects, a significant portion of which was devoted to infrastructure and related projects. N108 billion for overheads, N117 billion as statutory transfers, N142 billion for Consolidated pension, N1.2 trillion for personnel and N135 billion for service wide.

    The minister also revealed that, the government is currently developing a National Economic Recovery plan covering 2017- 2020.  The plan, she said would guide preparation of annual budgets and guide the Economic Management Team and budgeting process over short term to medium term.

     

  • Obaseki begins work on 2017 budget

    Obaseki begins work on 2017 budget

    Ahead of his inauguration on November 12, Edo State Governor-elect Godwin Obaseki has raised a committee to prepare next year’s budget.

    This, according to sources, will enable him to hit the ground running and ensure that lawmakers get the budget this year.

    A member of the Transition Committee said Obaseki emphasised that next year’s budget estimates should focus on jobs and empowerment.

    At a media briefing after his election, Obaseki said he would not have a large State Executive Council (Exco) but find other means to empower political supporters.

    During his campaigns, the All Progressives Congress (APC) candidate promised to create 200,000 jobs.

    Explaining how he would create jobs, Obaseki said: “Take, for instance, agriculture. The registered farmers in Edo State and in the 18 local governments outnumber 35,000 small holding farmers. This statistics is according to records at the Ministry of Agriculture.

    “This record also shows that each of these 35,000 farmers occupies at least two to five hectares. This means 115,000 hectares with a labour requirement of three workers per hectare of production.

    “This means a rice farmer would have five workers per hectare of production; the same applies to cassava. Arithmetically, this translates to manpower of 315,000 and up to 500,000 workers.

    “This calculation in the agricultural entrepreneurial scheme is for two crops alone. This is the basis for the governor-elect’s conservative 200,000 jobs to herald the emergence of future stars and alleviate poverty, if it does not eradicate it.”

  • Obaseki begins preparation of 2017 budget

    Obaseki begins preparation of 2017 budget

    Ahead of his inauguration on November 12, Edo State Governor-elect, Mr. Godwin Obaseki has raised a committee to prepare the 2017 budget.

    This, according to sources, this is to enable him hit the ground running and ensure the lawmakers receive the budget this year.

    A member of the Transition Committee told our reporter that Obaseki emphasized that the 2017 budget estimates should focus on job employment and empowerment as they are priority on his agenda.

    At a press briefing after his election, Obaseki has said he would not have a large cabinet but he would look into other means to empower political supporters.

    During his campaigns, Obaseki promised to create 200,000 job.

    Explaining how he would create the jobs, Obaseki said, “Take for instance agriculture. The registered farmers in Edo state and in the 18 local government areas out-numbers 35,000; small holding farmers – this statistics is according to records from the Ministry of Agriculture”.

    “This records also shows that each of these 35,000 farmers occupies at least 2 to 5 hectares of land which summarily means 115,000 hectares with a labour requirement of 3 workers per hectares of production.

    “A rice farmer with 5 workers per hectares of production – the same applies to cassava. Arithmetically, this translates to a manpower of 315,000 and up to 500,000 workers – this calculation in the agricultural entrepreneurial scheme is for 2 crops alone – this is the basis for the Governor-elect’s conservative 200,000 jobs that would herald the emergence of future stars and alleviate poverty, if not eradicate it.”

  • ‘Navy to get more cash in 2017 budget’

    ‘Navy to get more cash in 2017 budget’

    The Chairman of the House of Representatives’ Committee on Navy, Mr Abdussamad Dasuki, has promised to ensure the Navy gets more allocation in the 2017 budget.

    Speaking when he led other members to the Headquarters of the Eastern Naval Command (ENC) in Calabar, Dasuki said the Navy needed more funds for proper security of the maritime environment.

    He hailed the command’s  Flag Officer, Rear Admiral James Oluwole, for doing well despite meagre resources.

    Dasuki noted that the command required more ships and gunboats as well as an overhaul of the jetty.

    His words: “We have gone round and we have seen for ourselves. It is an unfortunate situation whereby the Navy is securing the maritime domain and does not have enough capability and capacity. Yes, they have capacity in men but the effort being put in to make sure they sustain that is not there. As a committee on Navy, we are going to make a case for the Navy, they need to be more empowered.

    “I am sure you have seen for yourself the jetties, which, in the first place, should not be there for now. We need to upgrade them to meet the 21st  century challenges.  Besides,  we are looking at the ships and gunboats. I think there is need to overhaul them and get modern boats.”

    Rear Admiral Oluwole, who conducted members round the command, sought more platforms to tackle insecurity.

    He said: “The challenges are there, but we have opportunities in challenges. It is obvious that you cannot overemphasise that we need more platforms, adequate platforms to tackle the threats we are facing. From all we have seen, we need more boats, ships because we have different layers of defence.

    “The backwaters require different assets. The territorial waters also require different assets, like the offshore patrol vehicles. As we speak, the second offshore patrol vehicle is on the way to Nigeria from China. With the efforts, everybody is working hard to see how we can tackle these challenges. The Navy alone cannot do it. It is for us to put our act together and get it done.”

  • Fed Govt proposes N6.866tr for 2017 budget

    Fed Govt proposes N6.866tr for 2017 budget

    The Federal Government has proposed an estimate of N6,866,335,052, 740 for the 2017 fiscal year.

    The government has also pegged the oil production figure for 2017 at 2.2 million barrels per day with a projected oil benchmark price of $42.50.

    Average exchange rate for 2017 is slated at N290.00 per dollar.

    These are contained in the Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) submitted to the Senate by President Muhammadu Buhari yesterday.

    The government budgeted N6,060,677,358,227 for the outgoing 2016 fiscal year while it pegged the oil production volume also at 2.2mbp.

    The oil benchmark for 2016 is $38 while the average exchange rate is N197 to a dollar.

    For 2017, the government put recurrent expenditure (Non debt) at N2.563b, it was N2.346b in 2016; personnel costs (MDAs) for 2017 is N1.815b, it was N1.748 in 2016 budget; overheads for 2017 is N180b, it was N163.392b in 2016.

    Capital expenditure (Exclusive of transfers) is N1,756,199,794,310 while special intervention programme will receive N350billion, it was N300 billion in 2016 budget.

    Presidential Amnesty Programme will receive N65 billion, it was N20 billion in 2016. Refund to special account is N50 billion.

    Statutory transfers will be N370.697b, Debt service N1,639b, sinking fund to retire maturing loans is N177,460b.

    Provisions in the MTEF the government said, are drawn from government’s development priorities over the medium term and more specifically driven by its fiscal strategy and reflect the broad aggregates of the government’s annual budget over the period.

    The government noted that the aggregate revenue to fund the 2017 budget is projected to increase over the 2016 estimate of N3,855 trillion by about 8 per cent (or about N313 trillion)

    It said that thirty three per cent of this is to come from oil sources while the balance is derivable from non oil sources-in consonance with the government’s renewed focus on diversification of its revenue base.

    It said that the planned aggregate expenditure is estimated to exceed the provision of N6.06 trillion in the 2016 budget by 13.3 per cent (or about N806 billion)

    The government said that the distribution the resources among the spending categories is driven by government’s strategic focus and the continuing efforts to complete and exit projects and programmes outlined in the strategic implementation plan of the 2016 budget.

    It noted that over the medium term, government is strategically postured on reflating the economy while addressing issue around revenue generation.

    “This informed the downward trajectory projected for the 2016-2018 medium term. However, this trajectory is a slightly altered for 2017 in order to make requisite provisions for some of its strategic programmes and projects over the medium term,” it said.

    The government also said it would continue to provision for social intervention programmes in order to cater for the social and developmental needs of the poor and vulnerable Nigerians.

    Accordingly, it said that the recurrent (Non Debt) expenditure and capital payments are projected to increase in nominal terms by N217.42 billion and N177.6billion especially in 2017 over the 2016 estimates.

  • FG proposes N6.8tr as 2017 Budget

    FG proposes N6.8tr as 2017 Budget

    The Federal Government has proposed the sum of N6, 866,335,052,740 as budget for 2017 fiscal year.

    The government also put the oil production figure for 2017 at 2.2 million barrels per day, while the projected oil benchmark price is put at $42.50.

    Average exchange rate for 2017 is slated at N290.00 per dollar.

    These were contained in the Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) submitted to the Senate by President Muhammadu Buhari on Tuesday.

    The government budgeted N6,060,677,358,227 for the 2016 fiscal year, while it pegged the oil production volume also at 2.2mbp.

    The oil benchmark for 2016 was slated at $38, while the average exchange rate for the same year was put at N197 per dollar.

     

  • Presidency, National Assembly and 2017 budget

    Presidency, National Assembly and 2017 budget

    THE approval of the Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) by the Federal Executive Council for onward transmission to the National Assembly may signal a new time line in the budgeting process of the country.

    Although this is coming without the dust raised by the allegation of budget padding in the House of Representatives yet to settle, the early approval of the MTEF appears to mark a new beginning in the country’s budget preparation.

    The MTEF is a vital fiscal document that sets out the parameters of the annual budget estimates. Its consideration and approval by the National Assembly paves the way for the presentation of the Appropriation Bill to the National Assembly by the President.

    It is admirable that the essential document was approved in last month by the Federal Executive Council, quite unlike what it used to be. In 2014, a revised MTEF was submitted to the National Assembly in December of that year.

    The Federal Executive Council had last month approved the 2017-2019 MTEF and FSP. It pegged the crucial crude oil benchmark for the 2017 budget at $42.5. It is $2.5 less than the $45 oil benchmark fixed for 2016 fiscal year.

    Adoption of oil benchmark has always been one area of difference between the National Assembly and the Presidency with the National Assembly more often than not plotting a higher benchmark to create floating funds.

    Budget and National Planning Minister, Senator Udoma Udo Udoma, who justified the adoption of $42.5 benchmark said: “Oil price benchmark, we intend to use $42.5 as a reference price in 2017. We are projecting $45 in 2018 and $50 in 2019. So, we are keeping to the very conservative in terms of the reference price of crude oil even though we are expecting it to go higher than this but we are keeping to an extremely conservative price scenario.”

    On why 2019 GDP growth rate is lower the minister said, “The reason 2019 is slightly lower than 2018 is because that is an election year and usually in an election year there are uncertainties, we have also made provision for that.”

    Udoma said government would adopt N290 to $1and described N290 to $1 exchange rate as a fair estimate from the Central Bank.

    The two chambers of the National Assembly are, no doubt, anxiously waiting for the transmission of the fiscal document to dissect it, going forward. Consideration and approval of the MTEF may be one important assignment the lawmakers will undertake on resumption from their elongated annual recess.

    One good thing about early transmission of the MTEF to the National Assembly is that it gives the lawmakers the opportunity to work on the document thoroughly.

    Non implementation of budgets has always been blamed on late submission of the MTEF which invariably led to late presentation and passage of the Appropriation Bill.

    The September deadline set by the National Assembly for the presentation of the Appropriation Bill every year has always been breached by the Presidency.

    In 2014, the withdrawal and resubmission of a revised Medium Term Expenditure Framework and Fiscal Strategy Paper by President Goodluck Jonathan to the Senate for consideration and approval led to delayed passage of the 2015 Appropriation Bill.

    Jonathan explained that the revision of the MTEF was due to the extra-ordinary global circumstances that confronted his government in the latter quarter of the 2014 fiscal year.

    “As you know, the first MTEF with a budget benchmark of $78 a barrel was submitted to the National Assembly on 30th September, 2014 and discussion on the MTEF and budget construction based on those estimated began with the relevant committees of the National Assembly.

    “However, shortly after the first submission, oil prices began to fall precipitously, leading to a revision of the oil benchmark price in the MTEF to $73 per barrel which was resubmitted to the National Assembly on 18th November, 2014.

    “Following this, the decision of Organisation of Petroleum Exporting Countries (OPEC) at their meeting in Vienna on 27th November, 2014 not to cut production to support the price led to further precipitous fall in the oil price to below $70 per barrel.

    “This led, one more time, to another downward revision of the benchmark price to $65 per barrel and a revised MTEF which was again submitted to you on 2nd December, 2014,

    “The uncertainty surrounding the global price of crude oil and its continuous fall has occasioned delays in both the submission of a final MTEF and budget estimates, and we thus request your kind consideration of both of these items (MTEF and Appropriation Bill) together in view of our national budget calendar,” Jonathan declared.

    Commendable as the approval of the MTEF 2017-2019 may be, it needs to be emphasized that its immediate transmission to the National Assembly is of essence. This is the only way the National Assembly can do justice to the document.  Warehousing the document in the Presidency after it had been approved may not be in the interest of the 2017 budget.

    The National Assembly on its part should for once do things differently by scrutinizing the MTEF and the budget painstakingly.

    The “carry go” mentality the lawmakers gloss over the budget should, for all intents and purposes, be a thing of the past.

    Unbridled budget padding begins with the lackadaisical consideration of the Appropriation Bill when most senators and House of Representatives members look the other way while a few others mostly with pecuniary interest are left to do the job. National Assembly standing and sub-committees should also brace up to do their work.

    A situation where some committees decide to conduct their budget defence behind closed door due to so-called security reason should be discontinued. Closed door budget defence has been discovered to be avenue for the obnoxious “rob my back, I rob your back.”

    The 2017 budget should be an open forum for all who cared to contribute to make it work. There should be no hidden charges. Every single subhead in the budget, including the expenditures of the unwieldy Presidency, the dodgy National Assembly and the judiciary, should be laid bare for Nigerians to see.

    The appearing and disappearing 2016 budget will soon be overtaken by the 2017 budget. National Assembly members may do well to find out to what extent the budget was implemented. What happened to the much touted social safety net provisions in the budget?