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Tag: budget

  • Budget 2013 faces bleak future

    Budget 2013 faces bleak future

    •Jonathan, lawmakers row deepens

    •Okonjo-Iweala summoned

    SENATORS will not consider the 2013 amendment budget until October, it was learnt yesterday.

    The upper chamber also warned Finance Minister and Coordinating Minister for the Economy Mrs. Nogozi Okonjo-Iweala against making unguarded comments.

    Mrs. Okonjo-Iweala was reported to have warned that the economy would shut down in September, if the National Assembly fails to approve the 2013 amendment budget.

    The chairman, Senate Committee on Information, Media and Public Affairs, Senator Enyinnaya Abaribe, said at a press conference in Abuja that the Senate would only consider the proposed amendment budget after its annual vacation, which begins on August 2, and ends on September 31.

    Abaribe said that Senators were unhappy to read that Mrs. Okonjo-Iweala said the inaction of the National Assembly on the 2013 amendment budget will cripple the economy.

    He said that the Senate does not expect any minister or an appointee of the President to make comments which could set the Executive and the Legislature on collision path.

    President Goodluck Jonathan is expected to send the 2014 Appropriation Bill to the National Assembly in September.

    If the 2013 amendment budget, which Abaribe described as “humongous”, is not considered before the end of September, it means that the National Assembly will have two sets of budgets to consider and approve.

    Abaribe said: “Let me say that we were very perplexed when we read comments allegedly made by the Minister of Finance and Coordinating Minister for the Economy with respect to the budget.

    “First of all, the Senate does not view the comments made kindly.

    “The feeling of the Senate and indeed the National Assembly is that we do not expect ministers of the Federal Republic and appointees of Mr. President to make comments that tend to give the impression of a collision course between the Executive and the Legislature because we are all working towards the same purpose and our purpose is to make sure that we take care of the welfare of Nigerians.

    “Therefore we find it not to our liking when a comment is made that tends to say that government will shut down if the National Assembly doesn’t do anything and we do not agree with that.

    “What we got from the President, which is actually a third amendment, is a set of documents amending the budget.

    “Now we find that these documents are even larger than the budget itself and there is no way that the Senate and, indeed, the National Assembly can consider these amendments until we come back from our vacation this year.

    “There is absolutely no way amendments of this nature would be considered with the short time we have until we go on our annual vacation.

    “The point really is that we thought that if there are differences – and this was discussed with the Presidency – that we take those few differences and deal with them.

    Coming to now bring up a whole list of amendments that are even much more than the original documents, we do not expect that the Presidency will not expect us to take time to look through it.

    “In addition to all these, we already have other things that we have to deal with.

    “So what we want to appeal is that effort should not be made to put us on a collision course. We are not on a collision course.

    “We are all interested in making sure that the budget as passed would be implemented and implemented in such a way that everybody in this country will get the benefit of why the budget was passed in the first place.

    “We know that in September as the President has promised there is going to be a new budget.

    “So when you bring these humongous documents and you are also going to in this same September bring us another document, what do you expect us to do?”

    Asked whether the Senate will throw out the amendment budget to face the 2014 budget, Abaribe said the Senate will consider what was sent to it.

    “We are just saying that they are so big that we have to take time to consider it,” he said.

    On the court ruling on Service Chiefs, he said the National Assembly was not a party to the suit.

    He added that it is up to the Presidency to obey the judgment.

    “Let me state very clearly that the National Assembly and, indeed the legislature, was not a party to that suit. It is a suit between an individual and the Presidency and the government, as it were.

    “So it is up to the Presidency or the government to obey the court judgment.

    “When that is done, the National Assembly, of course, will be alive to its constitutional responsibilities.”

  • Jonathan to National Assembly: restore N72.4b budget cut

    Jonathan to National Assembly: restore N72.4b budget cut

    President Goodluck Jonathan has said that the reduction of budgetary allocations by the National Assembly will undermine the implementation of the 2013 budget.

    Dr. Jonathan, in a statement titled “Re:2013 amendment budget”, urged the lawmakers to restore the deductions to promote national development.

    He warned that failure to restore the deductions would exacerbate the unemployment situation as well as make it difficult for the government to meet its obligations to its workers.

    Though Jonathan did not say where the National Assembly put N72.4 billion it reduced from the budget, some observers noted that some of the cuts made by the lawmakers were uncalled for.

    The observers said that the National Assembly should not have tampered with allocations made for construction of roads, amount voted for creation of jobs, health facilities and power projects.

    The President recalled that he had transmitted the 2013 amendment budget proposal to the National Assembly on March 14.

    He noted that following further consultations, he had sent a new version of the categorised 2013 amendment budget proposal indicating changes proposed across the expenditure categories.

    He said: “The capital projects have now been designated as follows: “critical” is designated as (I); “important” is designated as (ii) and “others” designated as (iii).

    “Some Capital Projects, the allocations of which were reduced and which we seek your cooperation in restoring so as to promote national development, include the following:

    “Ministry of Works: Abuja- Lokoja Road reduced by N4 billion; Kano-Maiduguri Road reduced by N3.5billion; Dualisation of Ibadan-Ilorin Section 2 reduced by N5.5billion; rehabilitation of Jebba Bridge reduced by N1.25billion; rehabilitation of burnt Marine Bridge and Iddo Bridge reduced by N1billion; Special Intervention Funds for Emergency Roads and Bridges washed out across the country reduced by N6.28billion; Dualisation of Obajana Junction to Benin reduced by N4billion etc.

    “Ministry of Health: MDG HIV/AIDS ARV drugs allocation reduced by N1billion; Routine Immunisation Vaccines reduced by N1.75billion; Malaria Programme procurement and distribution of insecticides reduced by N0.8billion; payment of pledge for Onchocerciasis Recertification cut by N0.12billion; National Trauma Centre, Abuja reduced by N0.1billion, etc.

    “Ministry of Power: A total of N16.3billion was cut from power projects, including the 215 Mega Watts Kaduna Dual Fired Power Plant, which was reduced by N2.25billion; 2nd Kaduna- Kano 33KV DC Lines reduced by N1.5billion; Gombe-Yola- Jalingo 330KV SC Line reduced by N0.6billion; Maiduguri 330/132KV Sub-station reduced by N0.3billion; Kaduna-Jos 330KV DC Line reduced by N0.5billion; Omotosho-Epe-Ajah 330KV DC Line reduced by N0.8billion, etc.

    “Ministry of Transport: Construction of Abuja-Kaduna Rail was reduced by N1.4billion; Jebba- Kano Rail Line Rehabilitation reduced by N0.5billion; Procurement and rehabilitation of Wagons/Locomotives reduced by N1billion; Insurance of Locomotives reduced by N0.2billion, etc.

    “Ministry of Education: Allocations to various projects were reduced to the tune of N5.64billion, including the National Library Project which was cut by N2billion.

    “SURE-P: We all appreciate the fact that unemployment is our major concern in this country today.

    “Considering the gravity of the situation, I would like to bring up the issue of the budgetary allocation to the Community Services, Women and Youth Employment Programme under the Subsidy Reinvestment and Empowerment Programme (SURE-P).

    “Against our proposal of N27billion, the National Assembly allocated N9billion.

    “This cut will have the adverse effect of severely undermining our capacity to create the jobs needed for our teeming unemployed youths, women and physically-challenged citizens.

    “In this regard, I crave your cooperation to restore the SURE-P budget.

    “You will further recall that the personnel cost was cut across all Ministry Departments and Agencies which will make it difficult to meet government’s obligations to its workers.

    “I, therefore, seek your kind understanding for the restoration of the said cuts in order to maintain industrial harmony.”

    Chairman, Senate Committee on Information, Media and Public Affairs, Senator Enyinnaya Abaribe, however, insisted that the National Assembly has the power to alter the Appropriation Bill.

    Abaribe noted that it would be improper for the National Assembly to return the budget the way it was presented by the President.

  • Reps reject N4.9tr budget revision

    Reps reject N4.9tr budget revision

    The House of Representatives yesterday snubbed the 2013 supplementary budget sent to it by President Goodluck Jonathan.

    It described the bill as an “alien”, “a stranger” and indeed, “an interloper” in the constitutional arrangement.

    According to the lawmakers, the preparation and, presentation of the document failed all constitutional processes.

    The lawmakers said Section 81 of the Constitution is clearly against them amending the bill. They advised President Goodluck Jonathan, being the only authority constitutionally empowered to initiate a money bill, to resubmit a proper bill.

    The consideration of the Appropriation Act (Amendment) Bill 2013 that seeks to appropriate N4,987,382,196,690.00 was listed for the third time for second reading yesterday, following the conclusion of work on it by the Committees on Rules and Business, and Justice/ Judiciary that were mandated to ascertain the constitutionality of the bill.

    Yakubu Dogara (PDP, Bauchi) on June 5 raised a constitutional point of order, citing Section 81 (1), (2) and (4) of the 1999 Constitution as amended. He observed that the Appropriation Act 2013 (Amendment) Bill is more of a new 2013 Appropriation Bill than an Amendment Bill 2013.

    Dogara described it as 2013 Appropriation Bill No. 2 as the amendment bill was in three volumes and N161,771,089 in excess of the 2013 Appropriation Act.

    The Chairman, Committee on Rules and Business, Albert Sam-Tsokwa (PDP, Taraba), presenting the report, said though the President was constitutionally empowered to initiate such bills, it failed constitutional due diligence in both its preparation and presentation to the National Assembly.

    Speaker Aminu Tambuwal did not entertain debates on the issue – in line with House rules – after Sam-Tsokwa’s presentation. The Speaker sustained Dogara’s point of order, jettisoning the consideration of the bill.

    Sam-Tsokwa, in his presentation jointly prepared with Ali Ahmad (PDP, Kwara), Chairman, Committee on Justice, said the constitutionality of the supplementary budget bill was examined from two fronts.

    According to him, the Committees wanted to verify whether an Appropriation Act is amendable.

    Citing Sections 4, 5 and 6 of the Constitution to defend the position of the report, he said: “In a constitutional democracy such as ours, the power to do or forbear the doing of an act by any of the arms of government, especially and particularly the Legislative and Executive Arms, is donated, demarcated, circumscribed and or prescribed by the Constitution.

    “While Parliament is empowered to make laws generally through Bills initiated from within or without, the Constitution explicitly imposes solely on Mr. President, in section 81 thereof, the duty to initiate an Appropriation Bill.

    “It is very clear, therefore, that an Appropriation Bill or its variant, a Supplementary Appropriation Bill, can only be introduced in Parliament by Mr. President or in the case of the state, the governor.

    “A community reading of section 81 (1) (2) and (4) of the Constitution creates a very strong impression and feeling in the mind that the Constitution does not favour, admit of or even contemplate the amendment of an Appropriation Act, save vide a Supplementary Appropriation Act.

    “It would appear, therefore, that while the Constitution contemplates and envisages a situation where there may arise a need to supplement the funds appropriated in an Appropriation Act, it does not do so with respect and regard to reducing or diminishing the funds appropriated in an Appropriation Act by way of an amendment.

    “On a strict and austere reading of Section 81 (1), (2) and (4) of the Constitution, therefore, it will be difficult to conclude that the Constitution admits of an amendment to an Appropriation Act, save by way of a Supplementary Appropriation.

    “However, it may legitimately be observed and even argued that an Appropriation Act, not withstanding its special constitutional flavour and colouration bestowed on it by section 81 (1), (2) and (4) of the Constitution, is, and remains like any Act of Parliament, an Act of Parliament.

    “Being an Act of Parliament, therefore, an Appropriation Act, by the general powers of Parliament under section 4 of the Constitution and Order 12 of the House. Standing Orders, 7th Edition 2011, no doubt, be subject to Amendment.

    “Of course, we have noted earlier that a Supplementary Appropriation Act is an amendment Act, for all intents and purposes to the Appropriation Act it seeks to supplement.

    “The answer to our question is, therefore, in the affirmative”.

    However, the lawmakers were keen on the constitutionality of the amendment bill and sought answers from the constitution itself. “Now, is the Appropriation Act 2013 Amendment Bill constitutional in the circumstance?”, Sam-Tsokwa asked,

    He said, in this circumstance, the National Assembly would be working against the Constitution if it attempts to amend the bill as there was nothing to amend or repeal in the 2013 Appropriation Act.

    Besides, he noted that Mr. President, being the only authority constitutionally empowered to initiate a money Bill, may wish to resubmit a proper Bill as Section 81 clearly ties the hands of Parliament.

    He explained the flaws inherent in the presentation of the bill, saying the document communicated to the House of Representatives, apart from carrying the title “Appropriation Act 2013 Amendment Bill” and the Bill’s Long Title, has nothing to show that it is a document seeking to amend or repeal and re-enact the 2013 Appropriation Act.

    He said: “The purported Amendment Bill, a five clause Bill, is completely and totally silent on what and which sections of the 2013 Appropriation Act it seeks to amend and or repeal. So also is it silent on the schedules or what aspects of the schedules to the 2013 Act it seeks to amend and/or repeal.

    “Members may wish to note that while the 2013 Appropriation Act appropriates the total sum of N4,987,220,425,601.00 for the financial year 2013, the purported 2013 Appropriation Act (Amendment) Bill 2013 seeks to appropriate a total sum of N4,987,382,196,690.00.

    “Clearly, what the Amendment Bill 2013 seeks to appropriate is more than what was appropriated for the 2013 fiscal year in the 2013 Appropriation Act, that is to say, the Executive would appear to be seeking additional funds.

    “Obviously, this cannot be achieved through an Amendment Bill. The answer lies in a Supplementary Appropriation under Section 81(4) of the Constitution.

    “At best, the Appropriation Act 2013 Amendment Bill of Mr. President, for want of a better description and or expression, is, in the words of Hon. Dogara a “2013 Appropriation Bill No. 2, an alien, a stranger or, indeed, an interloper in our constitutional arrangement.

    “Mr. President’s intents and purposes are well communicated and conveyed in his letter of 14/3/2013 but the companion of the said letter, voluminous as it is, in three fat volumes, seeking to amend the 2013 Appropriation Act failed in that mission and therefore amends or attempts to amend nothing.

    “Mr. President, being the only authority constitutionally endowed and empowered to initiate a money Bill, may wish to resubmit a proper Bill as section 81 clearly ties the hands of Parliament”

    Spokesman of the House, Zakari Mohammed (PDP, Kwara) had, shortly before the House went on the recess noted that the scope of the amendment made it seem the budget had not been passed in the first place.

    “Amendment means there was a law on ground that has defects but with the level of amendment requested, it is as if a new budget is to be passed. Do not forget that a budget had been signed and if someone is saying that because an amendment has not been passed he won’t implement the budget, then there is a problem,” he said.

    Sam-Tsokwa recalled that Speaker Tambuwal on March 19 read a communication dated Wednesday 14th March 2013 from President Jonathan to the House.

    He said: “The communication forwarded what Mr. President described as “a copy each, of the 2013 Amendment Budget Proposal and 2013 Subsidy Reinvestment Programme (SURE-P) Amendment Budget Proposal”.

    “Being a Money Bill, at least so the communication declared, the document passed for First Reading in keeping with our Rules. The Bill was subsequently scheduled for Second Reading.

    “Thus, on Wednesday the 5th day of June 2013, the Leader of the House, Hon. Akande-Adeola moved that the Bill be read a second time.

    “Interrupting the debate on the motion in line with our Rules, Hon. Yakubu Dogara rising to a constitutional point of order, drew attention to section 8 1(1), (2) and (4) of the 1999 Constitution as amended and’ observed that the Appropriation Act 2013 (Amendment) Bill is more of a new 2013 Appropriation Bill than an Amendment Bill 2013.

    “Mr. Speaker entertained comments on the constitutional point of Order from some Members and ruled that being a constitutional issue, the matter be and was referred to the House Committees on Rules and Business, Justice and Judiciary for the further guidance of the House”.

  • Reps seek 40% of budget for capital expenditure

    Reps seek 40% of budget for capital expenditure

    The House of Representatives is set to compel the Executive to allocate 40 per cent of the nation’s budget to the capital expenditure.

    The lawmakers said the ritual allocation of less than 30 per cent of the nation’s budget to recurrent expenditure and debt servicing has not aided infrastructural development.

    The decision of the lawmakers followed the successful second reading of the Economic Stimulus Bill, sponsored by Minority Leader Femi Gbajabiamila (ACN, Lagos).

    The lawmaker noted that if passed, the bill has the capacity to influence and affect the lives of the Nigerian masses and generations unborn.

    Gbajabiamila said the primary responsibility of any good government should be the security and welfare of the people.

    According to him, it is incumbent on the Legislature to assist the government in taking the country out of its developing nation status to a developed economy.

    Gbajabiamila said: “It is the level of infrastructural development that differentiates developing from developed countries. We can only achieve this transition through the allocation of a minimum of 40 per cent of the budget to the capital components for at least 10 years.

    “The allocations of 70 per cent of the budget to recurrent and overhead expenditure would not translate to infrastructural growth and development. With such, the dividends of democracy can never be felt by the greater majority of our masses.”

    Antagonists of the bill, including Deputy House Leader Leo Ogor (PDP, Delta); Patrick Ikhariale (PDP, Edo) and Nicholas Ossai (PDP, Delta). They argued that the bill is against the provisions of the constitution on the basis of allocation of the Consolidated Revenue Fund.

    Fort Dike (APGA, Anambra), supported by Samson Osagie (ACN, Edo), John Eno (PDP, Cross Rivers), Sani Kalgo (PDP, Kebbi) Joseph Akinlaja (LP, Ondo) and Abike Dabiri-Erewa (ACN, Lagos), however, reminded the opponents that government’s primary duty on security and welfare is for the citizens and not just for civil servants.

  • Council presents budget

    Council presents budget

    The Chairman, Lekki Local Council Development Area (LCDA), Mr M.O. Ogidan has presented a budget proposal of N1.8billion to the legislative arm.

    Before breaking down the budget, he made a review of 2012 budget and admitted that the council performed below expectation because of poor internally generated revenue and dwindling statutory allocations.

    For 2013 budget, about N13 million is expected as internally generated revenue (IGR) and N1.849.720.000 as statutory allocation.

    The projected staff salary is put at N223.5 million while teachers salaries will be N115.1million. Both salaries will be N338.713,534.44.

    The overhead/running cost of the local government will cost N685,800.000. This amount covers expenditure on running cost by all departments and units, provision for security, traditional and chieftaincy matters, payment of non-pensionable staff, provision of drugs at primary health centres, maintenance and fuelling of vehicles including general servicing of meetings and other sundry expenses.

    The council has allocated N838.2million to capital projects. Under this, works, Housing and Infrastructure will take the lion share of N498.2 million, education follows with N152 million while Agriculture, Rural and Social Development will spend N73million as Planning and Budget as well as Commerce, Finance, Cooperative and supply will take N20 million each.

    On electrification, he said the administration places premium on provision of street light at strategic location, therefore all the five wards would benefit to enhance security in the various communities. This exercise will cost N10 million. The count has allocated N10 million as well to landscaping and beautification.

    Olaginju added that new roads will be constructed in some areas as old ones will be rehabilitated generally, road construction will gulp N145 million.

    In a similar vein, N30million has been set aside for the construction of drainage channels and culverts.

    The council chief said his administration has finally broken the yoke of poverty and hopefully this will translate into more dividends of democracy for residents.

  • Two Ogun councils budget over N2b

    Two Ogun councils budget over N2b

    chairman, Ifo Local Government Area, Ogun State, Chief Oluwole Enilolobo, has proposed a budget of N1,036,800,000 for this year.

    In a public presentation of the proposal christened “Budget of Restoration and Service Delivery” at the the council’s multi-purpose  hall, Enilolobo said the planned Appropriation Bill would be channelled to programmes that will impact positively on the people’s living standard.

    The council boss lauded residents for their support, urging them to continue to pay their levies and taxes accruable to the government.

    According to him, revenue from taxes and levies is one of the sources of funds with which projects that bring dividends of democracy could be executed.

    Also, the Chairman of Odogbolu Local Government Area of the state, Mr Olawale Shittu presented a  budget proposal of N1, 714,563,854 for the 2013 fiscal year to the Council’s legislators for approval.

    He said the budget would be financed from the Internally Generated Revenue.

    Presenting the proposal before the 15-member councillors at the legislators’ chamber, Shittu said the budget is designed to ensure that the dividends of democracy are extended to every part of the local government.

    He said this year’s Appropriation Bill christened ‘Budget of Rebuilding Odogbolu Local Government,’ was borne out of the need to face the realities of the economic situation in the country and the whole world and to ensure prudent management of scarce resources to accelerate developmental plans and programmes beneficial to the people.

    He said emphasis would be placed on agriculture which is projected to take up to N18,000,000 of the budget. Livestock, he said, will take N12,500,000, education N41,500,000, health N41,500,000 and water resources and supply N20,800,000, among others.

    In his remarks, the Leader of Local Government legislators, Honourable Wasiu Adeniji, assured the chairman of speedy consideration of the budget proposal.

     

  • Osun Assembly passes N234b budget into law

    The Osun State House of Assembly has passed the proposed N234 billion 2013 budget into law.

    In a statement by his media aide, Mr. Goke Butika, the Speaker, Najeem Salaam, said after Ministries, Departments and Agencies (MDAs) defended their budgets, the House increased the N183 billion proposed by Governor Rauf Aregbesola to N234 billion.

    Salaam praised the governor for implementing last year’s budget above average, adding that the government has intervened in all sectors.

    He said: “Before Aregbesola assumed office, the budget was a mere annual ritual with empty noise, but with the massive projects that were rolled out last year, our people have found reason again to look forward to the budget.

    “When the governor implemented his projects, people who earlier said he had no programme changed tunes and said the projects were too much. People were confounded about the non-availability of resources and ongoing projects. That is the power of financial engineering by a visionary leader.”

    Salaam urged MDAs to abide by the budget.

    The Chairman of the House Committee on Finance and Appropriation, Mr. Kamil Oyedele, said some neglected areas and under-estimated projects were responsible for the increase in the budget sum.

    Oyedele said the executive and legislative arms of government arrived at the new figure together.

    Capital expenditure got N167,886,486,580 (71.7 per cent) and recurrent expenditure, 28.3 per cent.

  • Council presents budget

    The Chairman of Oshodi-Isolo Local Government, Hon. Bolaji Muse-Ariyoh has presented the sum of N2.6 billion budget for 2013.

    Muse-Ariyoh presented the appropriation bill to the council’s legislative arm at the council’s secretariat.

    Reviewing the 2012 budget, the council chair highlighted the various achievements of his administration such as, development of hospitals and healthcare centres, constant poverty alleviation and human empowerment programme, improvement of the education sector, several road and drain construction as well as renovation of the secretariat and offices.

    He reiterated that the proposed budget will be channeled towards people-oriented projects in tandem with the Local Economic Empowerment Development Strategy Document.

    During the budget analysis, he listed various projects earmarked for implementation during the 2013 fiscal year.

    Such projects include; road construction, rehabilitation and surfacing, provision of borehole water and solar lights, construction of drains and culverts, purchase of patrol vans and bus, among others.

    “The N2.6 billion will be generated through N1.275 billion allocation from the federal and N10 million from state government, while N114 million will be the revenue to be internally generated. N980 million will be generated through Value Added tax (VAT) and a special grant of N225 million is expected to balance the budget,”he said.

    He further explained that N467 million will be expended on workers, N312 million on teacher’s salary with an overhead cost of N645 million. “There is about N274 million outstanding on capital, with N71 million as capital expenditure and the loan re-payment on capital is put at N192 million,”he added.

    Residents and stakeholders of the council were urged to render their civic responsibilities by paying their rates and fees to facilitate the implementation of the budget.

    On his part, the Speaker of the legislative council, Hon. Shobayo AbdulAzeez assured of speedy consideration of the bill.

    “We will scrutinise the budget, call all departments to defend it, know how they intend spending the money and we will monitor them to ensure all projects are well executed,”he said.

     

  • Council presents budget

    Council presents budget

    The Chairman of Oshodi-Isolo Local Government, Hon. Bolaji Muse-Ariyoh has presented the sum of N2.6 billion budget for 2013.

    Muse-Ariyoh presented the appropriation bill to the council’s legislative arm at the council’s secretariat.

    Reviewing the 2012 budget, the council chair highlighted the various achievements of his administration such as, development of hospitals and healthcare centres, constant poverty alleviation and human empowerment programme, improvement of the education sector, several road and drain construction as well as renovation of the secretariat and offices.

    He reiterated that the proposed budget will be channeled towards people-oriented projects in tandem with the Local Economic Empowerment Development Strategy Document.

    During the budget analysis, he listed various projects earmarked for implementation during the 2013 fiscal year.

    Such projects include; road construction, rehabilitation and surfacing, provision of borehole water and solar lights, construction of drains and culverts, purchase of patrol vans and bus, among others.

    “The N2.6 billion will be generated through N1.275 billion allocation from the federal and N10 million from state government, while N114 million will be the revenue to be internally generated. N980 million will be generated through Value Added tax (VAT) and a special grant of N225 million is expected to balance the budget,”he said.

    He further explained that N467 million will be expended on workers, N312 million on teacher’s salary with an overhead cost of N645 million. “There is about N274 million outstanding on capital, with N71 million as capital expenditure and the loan re-payment on capital is put at N192 million,”he added.

    Residents and stakeholders of the council were urged to render their civic responsibilities by paying their rates and fees to facilitate the implementation of the budget.

    On his part, the Speaker of the legislative council, Hon. Shobayo AbdulAzeez assured of speedy consideration of the bill.

    “We will scrutinise the budget, call all departments to defend it, know how they intend spending the money and we will monitor them to ensure all projects are well executed,”he said.

  • Budget 2013 back at National Assembly

    Budget 2013 back at National Assembly

    Two weeks after President Goodluck Jonathan reluctantly signed the 2013 budget, the President yesterday forwarded a memorandum to the National Assembly seeking an amendment of the Appropriation Act.

    Jonathan accused the National Assembly of over reaching its powers by including clauses that may be injurious to the spirit of separation of powers in the budget.

    The alleged injurious clauses, he said, could hamper the work of the executive arm of government, if not expunged.

    The two-page letter dated March 14, 2013 was read by Deputy Senate President Ike Ekweremadu in the Senate and House of Representatives, Speaker Aminu Tambuwal in the House.

    The memo, described as “indictment of the National Assembly” by some Senators, is entitled “Submission of the 2013 amendment budget proposal and the Subsidy Reinvestment and Empowerment Programme (SURE-P) amendment budget proposal.”

    Apart from seeking amendment of the 2013 budget, Jonathan also asked the lawmakers to alter the Subsidy Reinvestment and Empowerment Programme (SURE-P) budget as passed.

    The contentious SURE-P budget, which Jonathan wanted changed, is N273, 522, 000,000

    His listed three clauses, which according to him, impinged on the spirit of separation of powers and could hamper the work of the executive arm of government.

    Jonathan demanded a cut on the provisions made for personnel cost across the service and change of some provisions made for capital projects.

    The letter reads: “I seize this opportunity to express my appreciation of the National Assembly for giving accelerated hearing to the 2013 budget proposal and passing it in record time.

    “This indeed demonstrates the enduring partnership between the two arms of government in discharging our shared responsibility for nation-building.

    “However, as noted in our various consultative meetings with the leadership and various committees of the National Assembly following the passage of the budget, it became imperative that certain provisions, including cuts to personnel cost across the service and provisions for some capital projects, be changed through an amendment budget.

    “The overriding objective remains to help improve the lives of Nigerians.

    “In this respect, I hereby forward a copy each of the 2013 amendment budget proposal and the 2013 Subsidy Reinvestment and Empowerment Programme (SURE-P) amendment budget proposal.

    “Furthermore, the 2013 Appropriation Act includes clauses which may be injurious to the spirit of the separation of powers and which could hamper the work of the executive arm of government.

    “I therefore request that these should be reviewed.

    “The relevant clauses are:

    “Clause 6(ii) states that: “the Accountant-General of the Federation shall forward to the national Assembly full details of funds released to the government agencies immediately such funds are released;” while clause 9 states that: “All Accounting Officers of Ministries, Parastatals and Department of Government who control heads of expenditures shall upon the coming into effect of this Act furnish the National Assembly on quarterly basis with detailed information on the Internally Generated Revenue of the agency in any form whatsoever.”

    “Both clauses run counter to established chain of reporting.

    “Clause 7 states that “The Minister of Finance shall ensure that funds appropriated under the Act are released to the appropriate agencies and/or organs of government as and when due, provided that no funds for any quarter of the fiscal year shall be deferred without prior waiver from the national Assembly”.

    “This requires the Minister of Finance to seek a waiver from the national Assembly each time the Ministry of Finance cannot make full funds releases to MDAs when due. As you are aware, the nation experiences a shortfall in revenue once in a while and if the Minister is to seek a waiver on each occasion, the practice would tie down budget implementation, as this would involve the Minister writing a former letter to the National Assembly, presented in plenary and sent to the relevant committees for discussion.

    “These would create delays and constraints on the budget implementation; and Clause 10 states:

    “All revenue however described including all fees received, fines, grants, budgetary provisions and all internally and externally generated revenue shall not be spent by the Security and Exchange Commission for recurrent or capital purposes or for any other matters, nor liabilities thereon incurred except with Prior Appropriation and Approval by the National Assembly.”

    “Considering the fact that the budget of the Security and Exchange Commission does not form part of the core of the 2013 Federal Budget as presented to the National Assembly, I believe that this clause ought not to have been inserted in the 2013 Appropriation Act in the first place.

    “Secondly, the import of the clause is tantamount to shutting down the business of the Commission with a potential negative impact on the capital market.

    “It is my hope that the distinguished members of the Senate will consider and approve these revised proposals in your usual expeditious manner.”

    President Jonathan is proposing N4, 987, 382, 196,690 in the budget amendment Bill which is also what the National Assembly passed as budget for 2013.

    He proposed N4.92 trillion originally as 2013 budget.

    But Jonathan is said to have accused the National Assembly of taking money from recurrent expenditure and placing it in capital expenditure.

    He is insisting that the National Assembly should return the funds from capital vote to recurrent.

    A further break down of the proposed amendment bill shows that the National Assembly raised the capital vote to N1.62 trillion up from President Jonathan’s N1.54 trillion.

    But in the amendment bill, Jonathan proposed N1.588 trillion as capital vote.

    The National Assembly passed N2.38 trillion as recurrent expenditure, a reduction of over N100 billion as proposed by Jonathan.

    In the amendment bill, he has proposed N2.418 trillion as recurrent (Non Debt) expenditure.

    The President retained N591.764 billion for Debt Service expenditure.

    For statutory transfers, the National Assembly passed N387.9 billion but Jonathan is proposing N388,063 billion in his amendment bill.