Tag: budget

  • Australia’s budget deficit widens by A$10b

    Australia’s government has said it expects the nation’s deficit to grow to $40.4billion Australian dollars ($33.2billion; £21.2billion) in the 12 months to June.

    Earlier in the year, the deficit for the period had been forecast to come in at A$29.8billion.

    The country’s treasurer, Joe Hockey, said falling prices for key export commodities had hurt the economy.

    The nation’s mid-year economic outlook was delayed due to a siege situation in Sydney.

    Mr Hockey predicted the shortfall for the 2015-16 financial year would be A$31.2billion, up from a previous forecast of A$17.1billion.

    The Mid-Year Economic and Fiscal Outlook (MYEFO) updates Australia’s economic outlook from the previous budget.

    The report said the nation’s tax receipts had been revised down by $A31.6billion due to a more than 30 per cent fall in iron ore prices, together with weaker-than-expected wage growth.

    “Government payments have also been affected,” the MYEFO report said.

    “Delays in passing legislation and negotiations with the Senate have cost the budget more than $A10.6billion over the forward estimates, keeping debt and interest payments higher for longer.”

    A weaker Australian dollar together with historically low interest rates would continue to support the economy, the government said

    The report also said the deficit should narrow to $A11.5billion by between 2017 and 2018.

    “This reinforces that there is much more work to do and budget repair will take time,” it said.

    Sydney-based economist Katrina Ell told the BBC that falling iron ore prices and stubbornly soft growth in the non-mining sector meant “a budget blowout was going to occur”.

    “The initial budget estimates back in May seemed overly optimistic,” she said.

    Despite the change to the deficit forecast, the government noted that Australia’s economy would continue to be supported by historically low interest rates, lower energy prices, and a weaker Australian dollar.

  • ANAN urges Fed Govt on budget funding

    ANAN urges Fed Govt on budget funding

    The President of the Association of National Accountants of Nigeria (ANAN), Alhaji Sakirudeen Labode has urged the Federal Government to look inwards for alternative means of funding the budget now that prices of crude oil had fallen in the international market.

    Labode made the plea at the Sixth Mandatory Continuing Professional Development Programme (MCPD) of the association held in Abeokuta.

    The ANAN chief said the country could no longer rely on the price of crude oil in the international market in preparing and financing its national budget adding that the product remains unpredictable.

    He advised that all tiers of government should reduce the cost of governance by cutting down on its recurrent expenditure. “Leakages and wastages in business of government should be blocked. Our national needs should be prioritised by appropriating funds to those sectors that will grow the economy like agriculture, rods, health, education, transportation and others,’’ he said.

    Labode said ANAN was last month, admitted into full membership of the International Federation of Accountants (IFAC) in Rome, Italy.

    He said: “The IFAC Governing Council announced the admission during her November meeting held in Rome. You will recall that ANAN was made an Associate of the World Accountancy body in December, 2012.’’

    He described the MCPD as a continuous retraining programme for members of the group aimed at enhancing their service delivery to their employers and also a key requirement of IFAC.

    “It is rotated among the six geo-political zones of the country every year, affording members the opportunity to know other parts of the country,’’ Labode said.

    According to him, the theme of this year’s MCPD is ‘Trends in Professional Practice and Regulation’’, and the sub-theme are all enriching. He said the Governing Council had given approval for the opening of Outreach Campuses of the Nigerian College of Accountancy in the six-geo political zones of the country.

  • N2.1m budget tears union apart

    N2.1m budget tears union apart

    Barely two weeks to the end of its tenure, the Students’ Union Government (SUG) of the Nnamdi Azikiwe University (UNIZIK) in Awka, Anambra State, is facing a financial storm. The Students Representative Council (SRC) is threatening to impeach the president if he does not resign. OBY OKEKE (Mass Communication) reports.

    For the second time in two years, the Students’ Union Government (SUG) of the Nnamdi Azikiwe University (UNIZIK) in Awka, Anambra State, is facing a financial storm. The SUG president, Chukwunonso Ibe, has offered to resign barely two weeks to the union’s election, which will usher in another set of leaders.

    It all started last Wednesday after an emergency sitting of the Student Representatives’ Council (SRC), where Chukwunonso was accused of financial impropriety. A member representing 200-Law constituency, Gabriel Obiora, moved the motion for the union’s president impeachment, accusing him of gross mismanagement and misappropriation of funds.

    The Speaker of the SRC, Chekwube Okigbo, set up a committee to investigate the offence.

    The allegations against  Chukwunonso, according to a document obtained by CAMPUSLIFE, include gross misconduct, abuse of office, misappropriation of union funds, usurpation of constitutional functions of the treasurer and financial secretary, deducting the union’s fund at source, conversion of union property and embezzlement.

    Speaking with CAMPUSLIFE, Chekwube said the SRC, in its sitting on November 26, exercised its power as stipulated in Section 78 of the union’s constitution to remove any member of the executive arm found guilty of gross misconduct or for inability to hold office.

    Last Friday, the 10-man committee led by the Speaker summoned Chukwunonso. He was questioned on why he allegedly usurped the functions of the financial secretary and treasurer and collected funds from the transport sector. Chukwunonso was also asked why he allegedly broke the rule contained in a Memorandum of Understanding (MoU) signed by the three arms of SUG.

    Chukwunonso reportedly replied that he only signed the document and was not aware of what was contained in it, adding that he had no copy of it.

    An argument ensued when the union president was asked to explain the embezzlement allegation against him. Chukwunonso was said to have walked out, saying: “I am done with the House; you people should impeach me. In fact, I am resigning as president.”

    Irked by the president’s statement, Chekwube reportedly asked Chukwunonso to tender his resignation letter within 24 hours as stipulated by the constitution.

    When asked why the parliament raised the issue barely two weeks to the end of the union executive’s tenure, Chekwube said members swore to an oath to serve while in power, adding that their action is in line with the duties of the legislative arm to ensure the union did not go bankrupt.

    On the implication of Chukwunonso’s action, Chekwube said if the president did not resign as he vowed, the parliament would have no option than to impeach him. He said: “Whether Chukwunonso leaves office by resignation or impeachment, he will be punished for his misdeeds against the union.”

    While the dust raised by financial impropriety still suffused the air, the judicial arm of the union has also come out to accuse the Chukwunonso-led executive of starving it of funds.

     

  • ‘Lagos budget is pensioners’ budget’

    ‘Lagos budget is pensioners’ budget’

    The valedictory budget presented by Lagos State governor, Babatunde Fashola last month will solve most of the state parastatals and agencies pensioners lingering problems, Commissioner for Establishment, Training and Pensions, Mrs. Florence Oguntuase has said.

    Oguntuase who described the budget as pensioner’s budget while speaking in Lagos said the pensioners whose problems mostly rose from the old pension scheme will soon have cause to smile.

    Speaking on pension arrears being owed pensioners of local government and Water Corporation, she said the problem will soon be resolved.

    She said: “There is no doubt we have issue with few parastatals and we are taking it on board. We are going to pay each parastatals on its own merit. Before we were going to lump them together but we discovered that their cases are different from each other.

    “What the executive council has asked us to do is to take them one after the other.

  • Row over N18m union budget

    Row over N18m union budget

    There was confusion at the Students’ Union Building of the Obafemi Awolowo University (OAU) last Friday, when students disrupted the proceedings of the Students’ Representatives Council (SRC), the legislative arm of the Students’ Union Government (SUG), whose members were meeting to ratify the union’s N18 million budget. AFEES LASISI (200-Level Political Science) reports.

    It was supposed to be a peaceful business, but the parliamentary sitting of the Students’ Union Government (SUG) of the Obafemi Awolowo University (OAU) in Ile-Ife, Osun State, last Friday, ended in a stalemate. The students engaged their representatives in a brawl, vandalising property in the Students’ Union Building (SUB).

    Following the fisticuff, Man O’ War cadets, on the invitation of the union president, Isaac Ibikunle, moved in to stop the scuffle. The cadets cordoned off the SUG Building, denying many students access after the union officials returned for business.

    The fight, CAMPUSLIFE gathered, was in reaction to a directive by Ibikunle to deny non-members entrance into the building where the union’s N18 million budget was to be ratified. But students said the order was against the provision of the union’s constitution, which gives non-elected students permission to watch the proceedings of the union.

    Section 13 (1) of the constitution states: “Any student and other interested person(s) may attend meetings of the Students’ Representative Council (SRC) but only the elected members of that council shall have the right to contribute to the proceedings.”

    The students alleged that the union president wanted to bypass established rules to gather his loyalists in the parliament to ratify the budget. The Vice President, Clerk and some key members of the union were said to be absent when Ibikunle presented the budget for ratification.

    This did not go down well with occupants of the Obafemi Awolowo Hall, who had initially rejected the budget. The students wanted the president to convene a congress, where students would make input. The students also wanted the reinstatement of eight suspended members of the parliament.

    It was gathered that the feud between Ibikunle and his vice, Funmilayo Oladejo, was another factor that led to the disruption of the proceedings.

    While Funmilayo’s supporters called for a congress, Ibikunle’s caucus wanted a speedy ratification of the budget for the president to start his programmes.

    Some students accused the Vice President of ‘over-ambition’, claiming that she created a group to divide the the Ibikunle-led union. Some others accused Ibikunle of incompetence and said he was into unionism for personal gains.

    The General Secretary, Olatayo Shittu, said he was surprised when he saw the Man O’ War cadets denying students their “constitutional rights” to witness the SRC proceedings.

    He said: “Although on several occasions, our sittings have been disrupted by students, which might be the reason why the Man O’ War cadets were invited to protect the parliamentarians but students have constitutional right to be present at such meeting.”

    Olatayo noted that the budget should have been ratified 14 days after the officials’ inauguration, but he said the delay was caused by  disruptions by students.

    A student, Sola Ayo, said the directive by the union leaders not to allow students witness the proceedings was against Section 13 (1).

    “Looking at the militarisation of the SUB by the union leaders, it means the students are being denied their constitutional rights. We won’t allow them to impose their selfish wishes on the generality of students,” Sola said.

    After the cadets took over the union building, members of the parliament returned to ratify the budget.

    Ibikunle, reacting to the allegations against him, said he did not order the cadets to shut the gate against any student, saying the budget was for the interest of all.

    Ibikunle said: “We wanted to avoid violence; this was why the security men were brought in to ascertain that those coming in are students and not outsider, who do not want us to have peaceful reign by crippling the union’s activities.”

    On why he refused to call the congress, Ibikunle said: “I do not believe in congress anymore, because it is either its outcome leads to violence or the campus is closed down outright because of the students’ decision. We cannot afford to go back to the old ways anymore. The parliament has done the right thing in the interest of all students.”

    Seun Adewole, a student, said the union officials had always wanted to approve the budget without students’ input because of their intention to loot.

    He said: “They are all after their pockets without considering the difficulties students are going through since the reinstatement of the union. Why didn’t they want students to be there if it was not to loot the union’s funds?”

    Another student, Tunde Agboola, fingered the Vice President for the crisis, saying: “The union president has been trying his best since he was elected into office. But some students do not want his administration to succeed. Most of the meetings spearheaded by the vice-president have been declared unconstitutional and this tells us that she is an enemy of progress.”

    Funmilayo accused the parliament of selective ratification, saying the budget for her office was not approved. She described the outcome of the parliament sittings as daylight robbery on students, saying the president was playing god.

    She said: “What Ibikunle and his loyalists in the parliament did on Friday was a daylight robbery on all students and our collective treasure. They selectively approved budgets based on the personal wishes of the president and his co-travellers in the house. Ibikunle is trying to turn himself to a demigod and his actions are against the wishes of the students that elected us to lead them.”

    The VP said students must have input in the approval of the budget, advising the union president to call a congress.

  • 2014 3RD QUARTER BUDGET PERFORMANCE REVIEW SESSION

    2014 3RD QUARTER BUDGET PERFORMANCE REVIEW SESSION

    Lagos State Governor, Mr. Babatunde Fashola, SAN (middle), his Deputy, Hon. (Mrs) Adejoke Orelope-Adefulire (right) and the Secretary to the State Government, Dr (Mrs.) Oluranti Adebule (left) during the 2014 3rd Quarter Budget Performance Review Session at the Banquet Hall, Lagos House, Ikeja, on Friday, October 10, 2014.
    Lagos State Governor, Mr. Babatunde Fashola, SAN (middle), his Deputy, Hon. (Mrs) Adejoke Orelope-Adefulire (right) and the Secretary to the State Government, Dr (Mrs.) Oluranti Adebule (left) during the 2014 3rd Quarter Budget Performance Review Session at the Banquet Hall, Lagos House, Ikeja, on Friday, October 10, 2014.
  • Oshiomhole presents N156b budget proposal

    do State Governor Adams Oshiomhole presented yesterday a budget proposal of N156.551 billion for next year.

    The proposal was about N4billion lower than this year’s budget.

    Fifteen lawmakers elected under the platform of the All Progressives Congress (APC) were present at the ceremony.

    It was the first time the state’s budget was presented at the old hallowed chambers where the lawmakers relocated since July.

    Oshiomhole lamented that the 2014 revenue performance was affected by the drop in allocation from the federation account as the actual revenue realised in June was N43.256billion as against N117.48billion.

    Tagged Budget of Developmental Consolidation, the governor said the budget was informed by the compelling need to accomplish more for the people and accelerate the pace of work in the projects and programmes in all sectors of the economy.

    The budget proposal consisted of N 87.56 billion as Capital Expenditure representing 55.77 per cent.

    The proposed Recurrent Expenditure is N68.99 billion which represents 44.23 per cent.

    A breakdown showed that road construction got N16.95 billion, Agriculture N1.055 billion, Judiciary N2.955 billion, N18.1 billion for the education sector  and N9.29 billion for the health sector.

    Others are N18.5 billion for flood and erosion/environmental protection, N0.981 billion for water supply and N0.500 billion for rural electrification.

    The governor said: “As part of our continuous effort to entrench efficient and effective service delivery system, we will continue to encourage and promote the training and retraining of our civil servants, including teachers, to enable us build a highly skilled and vibrant work force that will always be alive to its responsibilities.”

  • Customs makes N800b in eight months

    Customs makes N800b in eight months

    The Nigerian Customs Service (NCS) has generated over N800 billion, about 70 per cent of its N1.2 trillion target for the year, raising the chances of the retention of its Comptroller-General, Alhaji Abdullahi Dikko.

    Sources told The Nation that Dikko and his men have surpassed the expectations of the Presidency and the Economic Management Team (EMT) in revenue generation.

    The Customs, it was learnt, has been upping the ante in revenue collection, contributing almost 25 per cent of the budget.

    According to a source, under Dikko, the Customs has contributed over N800 billion to the Federation Account as at the end of last month; and it is set to make an unprecedented contribution of over N1.3 trillion to the government’s coffer before the end of the year.

    The amount, it was learnt, represents about a quarter of the nation’s N4.964 trillion budget. The President is said to be happy that Customs has plugged revenue loop-holes at the seaports and borders.

    To enable the Customs excel Dikko is said to have opposed the payment of N40 billion yearly to the former service providers while his men had been trained to carry out their functions.

    He is said to have trained no fewer than 15,000 officers in the core areas of Customs responsibilities to facilitate trade at the ports and boost capacity building.

    Some officers, investigation revealed, were trained at home and others abroad to ease Customs clearing procedures and achieve ports efficiency.

    The affected officers, it was gathered, were trained in Customs operations, such as tariff classification, valuation, enforcement and e-Customs.

    “The truth is that the Dikko-led Customs Service has done so well in the area of revenue generation, anti-smuggling functions, trade facilitation, post audit functions, national and international collaboration, capacity building, training, ICT compliance and infrastructural development.

    “When he assumed office on August 17, 2009, it seemed  he took one hard look at the stagnating state of affairs of the Service and was convinced that what was needed is a pragmatic approach by insightful managers who would work with a motivated staff force to bring about the needed revenue to boost the economy.

    “It is generally believed in government circle that the condition of the Service before he came to office was not a salutary one. The service was like one of those government agencies that were in a dire need of reforms and, which had unfortunately, defied many past attempts to transform it into an organisation that would live up to the expectations of those in government and Nigerians,” the official said.

    The source said the Customs boss is yet to attain 35 years in service or clock 60 years, which is the mandatory retirement age.

    “The Economic Management Team is impressed with the revenue collected so far by some major commands of the Service as well as seizures recorded by its Federal Operations Units, the anti-smuggling arms of the service,” the source said.

  • DMO may raise N300b to  support budget, infrastructure

    DMO may raise N300b to support budget, infrastructure

    The Debt Management Office (DMO) is expected to raise over N300 billion this quarter to support 2014 budget and infrastructure development, analysts have said.

    Currencies Analyst at Ecobank Nigeria, Olakunle Ezun, said the debt agency will raise the funds through reopening of three-year, 10-year and a new issue of 20-year tenor.

    He explained in an emailed note that the debt agency this month alone, raised N100 billion through three offerings (all re-openings) of 13.05 per cent Federal Government of Nigeria (FGN) August 2016 bond; 14.20 per cent FGN March 2024 and 12.14 per cent FGN July 2034 bond. The stop rates, he said, were 11.123 per cent, 12.22 per cent and 12.389 per cent respectively.

    “In third quarter, the DMO plans to raise over N300 billion ($2 billion) through re-openings of 3-year, 10-year and a new issue of 20-year tenor to support budget and infrastructure needs,” he said.

    On the naira, Ezun said the currency’s short term outlook seems balanced and steady, but on the long term, the risk to the outlook is both on the upside and downside. “The upside risks are driven by the weakening global commodities prices and gloomy global economic outlook. The likely fiscal expansion prior to 2015 elections and reasonably strong liquidity growth continued to drive the downside risks to the naira outlook,” he said.

    He explained that while the CBN Governor, Godwin Emefiele’s forward guidance to steer economy to a low interest rate environment showed a clear departure from that of his predecessor era, his recent statement to sustain monetary policy stance until after the February 2015 elections supports naira above upper end of interbank plus or minus three per cent of N160 to dollar.

    “Nonetheless, there is high expectation that the rebased national accounts, in addition to a stable foreign exchange reserve and CBN’s tight monetary stance, would help support naira,” he said.

    The DMO said Nigerian companies have in recent months, issued nine bonds worth $30.4 billion in the International Capital Market.

    The Director-General of DMO, Dr. Abraham Nwankwo said the Nigerian companies took advantage of the window opened through the successful issuance of Nigerian Sovereign Eurobonds to successfully issue the international bonds.

    Nwankwo said the funds will be instrumental in helping Nigeria meet its infrastructural needs especially power. He noted that “for the first time in Nigeria’s economic history, the private sector has been enabled to access long-term funds from both the domestic and international capital markets. The successful issuances of three Nigerian Sovereign Eurobonds in the International Capital Market – one in 2011 and two in 2013 – have opened the window for Nigeria’s private sector to raise required foreign currency funds.

    The DMO chief said:  “They are now able to fund long-term real sector projects in agriculture, manufacturing, housing, mineral exploration and processing, infrastructure, for diversified and sustainable economic growth, towards employment generation and poverty reduction.”

  • Anambra Assembly approves N13.8b Supplementary Budget

    The Anambra State House of Assembly passed a supplementary budget of N13.8 billion yesterday.

    The government said it was meant to boost services across the state.

    The motion to pass the supplementary budget was moved by the Chairman of the Committee on Finance and Appropriation, Ms Nikky Ugochukwu (Orumba South) on August 29.

    She said the supplementary budget became necessary because the Executive needed to ensure that its programmes are not interrupted.

    Ugochukwu urged her colleagues to approve the budget as part of their responsibility to the people.

    Minority Leader Tony One Week Muonagor (APC, Idemili North) said there was need for the supplementary budget.

    According to him, it would enable the government to provide basic facilities the people needed urgently.

    Muonagor noted that any approval from the chambers to improve the lives of the people should not be politicised.

    Dr Emeka Anabonam (APC, Onitsha South 1), said the supplementary budget was timely because there were several things the state needed to do with the money.