The Nation Newspaper

Tag: budget

  • Expert to Govt: use budget to create jobs 

    THE Director-General, Kaduna Business School, Dr Dahiru Sani,  has called  on  the Federal Government  to use  the budget to create  jobs.

    He also that the budget should be used to raise the standard of living and create opportunities for Nigerians.

    Speaking with The Nation, Sani  said  previous  budgets  have  not achieved  positive results.

    He expressed    concern over poor job growth with   little improvement in unemployment over the years.

    He said  a lot  of  Nigerians  are unemployed, underemployed or have stopped looking for work. These he said  should be a priority  for the government.

    He   said   the  nation  faces  the “single biggest threat”  of  increasing  recurrent expenditure   from  surging  legislature and  executive  spending,  which  is   exploding the national debt.

    Consequently, Sani  called for  spending restraint.

    Acknowledging the negative   impact that the energy  crisis   was having on  manufacturing, the  Director-General   said there was a need  for the government  to expand the nation’s manufacturing base and  advance important initiatives  on manufacturing.

    He   warned of de-industrialisation  with   the rate of manufacturing job loss experienced  in recent years.

    Sani  said  there was a sharp  drop  in consumption   growth,  which  should  support  productivity growth.

    Notingthat declining   productivity rate is the core driver of manufacturing job losses, he said  there have not been signs of increased activity for manufacturers.

    The  director-general   said the concerns about the long-term fiscal health of the country persists and many manufacturers have pulled back hiring.

    Sani  called   for  improvements in  infrastructure and services to  reduce supply chain barriers and  contribute  to the Gross Domestic Product (GDP) of the country.

    He  said  lowering these barriers would reduce costs for businesses and help generate more jobs and economic opportunities for people.

     

  • Oyo Assembly approves N159b budget for 2013

    The Oyo State House of Assembly yesterday approved the N159.6 billion Budget for 2013, following the adoption of the report of its Committee on Public Accounts, Finance and Appropriation.

    Of the amount, N85.02 billion was voted for recurrent expenditure and N74.6 billion for capital expenditure.

    The Committee Chairman, Mr. Segun Olaleye, said his committee met with representatives of ministries, departments and agencies, where issues and grey areas were scrutinised for effective performance.

    Olaleye said some areas in the proposal were adjusted to ensure even development across all sectors, adding that the government would provide loans for traders.

    He said the Assembly would ensure that the budget is fully implemented, saying: “We have not just put this budget on paper, we are going to monitor it and ensure that it is properly executed to achieve the set objectives.”

    Governor Abiola Ajimobi presented the budget proposal to the Assembly in January.

     

  • LCCI: Budget delay fuels uncertainty

    The delay in the release of this year’s budget has created uncertainty in the economy, the Director-General, Lagos Chamber of Commerce and Industry (LCCI), Mr Muda Yusuf, has said.

    It will also affect planning in the private sector because there are some private sector institutions that take their cue from the budget.

    Muda said it would have a negative effect on capital budget implementation because “the more time we have to implement the budget, the better for the implementation”.

    “If we have a delay of close to two months, definitely it will affect the implementation.

    “So, delay generally creates the problem of uncertainty, it creates the problem of planning. It affects the pace of implementation of the budget generally. When the political parties were really very effective, we won’t have this kind of friction going for long since the president belongs to the majority party in the National Assembly.

    “The matter should have been resolved long ago, because they would have used the party machinery to resolve the impasse through the party caucus in the Senate and House of Representatives and party leadership. So, there has to be some effectiveness within the political party machinery in resolving such impasse.

    “Even as the President was signing the budget, you see that there was no ceremony about it. It was not even in the public glare as we used to have, so they must have signed it with some understanding, with conditional assent, conditional in the fact that they will come back to review some grey areas in the budget.

    He said the zero allocation to the Securities and Exchange Commission (SEC) may create instability in some area of the economy.

    “If you have a situation where a regulatory agency is being denied, of course that is not good for the system and it is not even proper for the National Assembly to be visiting their disapproval of conduct of the chief executive on the institution through this means. If you have problem with an official of an institution, it is not enough reason for you to cripple the entire institution.

    “It is very disproportional in that kind of action and I am sure such things should be reviewed,” he said.

    Muda said if the government is sincere about its Transformation Agenda, it should cut its spending.

    He said a critical look at the budget shows that the government is not prudent in its spending, most especially, the overhead cost.

    “It is easy to talk, but to truly put transformation in action is not easy. If we are to achieve this objective, first, our priority with spending must be right. We need to create the environment where enterprises create wealth.

    “If we continue to spend the way we are spending, it will be difficult for us to achieve the goal. Look at the budget, the structure of the spending does not reflect this vision. There are issues in the budget that cannot be defined properly, especially those under overhead,” Muda said.

    Muda said things would continue to get worse because the focus is on the 2015 election. He said most of the politicians would want to save for election and to secure themselves in case things did not work after the next polls.

     

  • ‘DG Budget did not direct MDAs to ignore 2013 appropriation’

    THE Budget Office of the Federation has denied ever instructing Ministries Departments and Agencies (MDAs) to ignore the recently signed 2013 budget.

    A statement from the Budget Office signed by Francis O. Ojiah, Director, Administration, Budget Office of the Federation, said “at no time since the passage of the 2013 budget and subsequent assent by Mr. President did the Budget Office issue such a directive.”

    Ojiah outlined what he called the “true situation” to be that: “following the passage of the 2013 Budget, a series of consultations were held between the National Assembly (NASS) and the Executive, during which observations were made on aspects of the passed bill that required adjustment, including personnel cost, overhead votes and critical capital projects. It was agreed that an amendment should be sent to NASS for consideration after assent by Mr. President.”

    He added that “the Budget Office subsequently issued a brief Circular Ref No. BD/2000/Exp/S.132/T/16, dated 6th March 2013, to guide MDAs on steps to observe in proposing any amendment to their budgets, along with a template.  They were to focus on the personnel cost, overhead and critical capital projects.”

    The office emphasised “there was nothing in the circular remotely suggesting that the 2013 Appropriation Act should not be implemented, as alleged. That was never the subject of the circular.”

    Ojiah noted that “far from being disrespectful to the Appropriation Act, the Guideline took pains to stress the need for MDAs, in preparing their amendment proposal, to respect the Act as passed.”

    The House of Representatives had summoned the Director General of the Budget Office, Dr Bright Okogwu, to appear before it for what was termed a breach of the Appropriation Act “capable of destroying the growing rapport and spirit of cooperation between the legislature and the executive.”

     

  • ‘Fed Govt starts 2013 budget implementation’

    ‘Fed Govt starts 2013 budget implementation’

    The Federal Government has started the Implementation of the 2013 budget, with the release of N400 billion first quarter capital vote, the Accountant-General of the Federation (AGF), Jonah Otunla, has said.

    In a statement, the Special Adviser to the Coordinating Minister for the Economy and Minister of Finance, Paul Nwabuikwu, said the N400 billion capital was released “to give fresh impetus to the execution of projects captured in Budget 2013.”

    He said: “Of this amount, N120 billion had been frontloaded to cater for two important initiatives: N75 billion for retiring bonds which have come due. This is in line with the new debt management strategy which focuses on reducing the stock and flow of debt in a proactive manner and N45 billion for the payment of Power Holding Company of Nigeria’s (PHCN) workers.”

    Otunla, who spoke at the end of the monthly Federation Account Allocation Committee (FAAC) meeting in Abuja, yesterday, said that the implementation of the 2013 budget was triggered after the FAAC meeting where the three tiers of government collected their cheques from the Federation Account.

    Last week, the Minister of Finance Dr. Ngozi Okonjo-Iweala, had hinted that the implementation of this year’s budget would take off after the FAAC meeting this week.

    At the end of the FAAC meeting for last month, N886.402 billion was shared among the three tiers of government.

    This amount comprises N450.263 billion statutory disbursements to the federal, state and local governments; N62.707 billion as Value Added Tax (VAT); N173.505 billion augmentation for the month; N35.549 billion from SURE-P; N7.617 billion refund by the Nigeria National Petroleum Corporation (NNPC) and N156.761 billion arrears of January, 2013 augmentation (December, last year account).

    From the statutory allocations, the Federal Government received N209.856 billion or 52.68 per cent of the net sum, states on their part, got a cheque of N106.442 billion or 26.72 per cent, while the 774 local governments received N82.062 billion or 20.60 per cent on the net statutory allocation.

    However, the House of Representatives said it has uncovered a plot by the Executive to undermine the implementation of the budget.

    The Director-General, Budget Office of the Federation (BOF), Dr Bright Okogwu, allegedly instructed Ministries, Departments and Agencies (MDA) to ignore the 2013 Appropriation Act and work in accordance with a yet-to-be-seen amended Act.

    The House has, however, summoned the Budget Office chief to appear before the Appropriation and Finance Committees and explain the content of the memo.

    Minority Whip, Mr Samson Osagie (ACN, Edo) who raised the issue under a matter of urgent public importance, said MDAs were directed by Okogwu to implement only the amended part of the Act.

    “The action of the DG of Budget Office is an infraction on the powers of the National Assembly, as well as an attempt to stop at nothing, but to blackmail the legislature.

    “We must sound a note of warning here that no proposed amended budget shall be implemented by the MDAs, other than what was passed by the National Assembly and assented to by the President,” he said.

  • Decorating a home on a tight budget

    DECORATING an entire house is a monumental task in and of itself. Add the challenge of working on a tight budget and the project can easily become overwhelming if not completely frustrating. The good news is that it can be done with as little stress as possible if some tips are put to good use.

    When working with a limited budget, a smart strategy is to invest more in the items that last such as big ticket items such as upholstered pieces and cabinetry.

    By purchasing a quality sofa in a neutral fabric, you will get more value in return for your naira because it could last you more than 10 years. Another great thing about investing in a quality piece of upholstery is that you can have it reupholstered several years down the line, which will save you the cost of replacing the entire piece.

    Don’t waste money on unimportant knick-knacks just to fill out the room. Too many can look cluttered and unfocused. Buy only the accessories that you absolutely love and which add impact to the room.

    Take inventory of all your existing furnishings. Label the items you can reuse, items you can repurpose and items that can be sold or given away. Once you know what you have, you will gain a better understanding of what you need.

    Be sure to carry diagrams and measurements of rooms with you when shopping. Do this and you will never have to guess if those materials are going to fit in the family room. This will prevent wasted time and money.

    Also, purchase all of the items that you have selected from a particular store all at the same time. This could enable you bargain for a greater discount. If they can all be packed at the same time, this can help you save on moving them.

    Consider hiring an interior designer. Yes, it will take a portion of your budget, but the advice you receive could actually save you big dollars in the long run. A good designer will work within the parameters of your budget and advise you on how to spend your money wisely. She will also have access to products that are not sold to the general public. If you cannot afford full interior design services, hire her to at least give you a clear direction for your project. Most designers work by the hour, and you can set a maximum number of hours that you can afford.

    Do as much of the work as you possibly can on your own. If you are putting in new flooring, at least do the demolition work if at all possible. Do all of your own interior painting.

    Almost anyone with basic sewing skills can sew their own pillows and make simple drapery panels. Buying fabrics in bulk could also get you a discount depending on the quantity.

    Be willing to look at your existing furniture in a new way. Turn that small dining table into a desk. Take an antique door, put a piece of glass on top, add some legs and you’ve got yourself a new dining or cocktail table.

  • Jonathan, Mark, Tambuwal to meet over budget row

    Jonathan, Mark, Tambuwal to meet over budget row

    The row over Budget 2013 persisted yesterday.

    Worried by the four conditions given to the Executive by the National Assembly, President Goodluck Jonathan yesterday invited principal officers of the Senate and the House of Representatives for talks.

    The session might also touch on the proposed amendments to the 1999 Constitution for which the executive is finalising its proposals, it was learnt.

    In readiness for the talks, the principal officers of the House met for two hours yesterday in Abuja.

    As the National Assembly leaders were getting set for the meeting, there was tension following alleged plans by Minister of Finance Dr. Ngozi Okonjo-Iweala, to speak on the budget row on Thursday.

    The Assembly leaders vowed to “retaliate”, if Mrs. Okonjo-Iweala attacks them at the proposed briefing.

    After persuasion by Senate President David Mark, the President had last week assented to the 2013 budget with a caveat.

    The budget comprises N2.3 trillion recurrent non-debt expenditure; N1.6 trillion for contribution to the development fund for capital expenditure; N387.9 billion statutory transfers; N591.7 billion for debt service; and a $79 a barrel benchmark.

    In spite of the signing of the instrument, the Executive and the National Assembly have not agreed on four key areas.

    The areas of disagreement are:

    •no-access by the Executive to the budgetary allocations of the Securities and Exchange Commission (SEC) until its Director-General, Ms Arunma Oteh, is removed;

    •extension of the lifespan of the 2012 Capital Budget to April;

    •2013 budget benchmark to remain at $79 per barrel; and

    •mandatory quarterly briefing of the National Assembly by Dr. Okonjo-Iweala on the budget’s implementation.

     

  • Uduaghan signs budget into law

    Delta State Governor Emmanuel Uduaghan yesterday signed into law the 2013 Appropriation budget of N472 billion.

    The budget is made up of about N316 billion Capital Expenditure and about N156 billion Recurrent Expenditure.

    Uduaghan promised to prudently fund projects to accelerate the execution of policies and programmes to improve the standard of living of the people.

    He also promised to place more emphasis on Capital Expenditure to consolidate the massive infrastructure development drive in the state.

    His words: “We want to do more of capital projects and spend less on recurrent expenditure. This is a big challenge; we are setting up structures that will weed out all ghost workers.

    “Indeed, we reduced recurrent to 37 percent and increased capital to 67 percent.”

    The governor announced that the state would work hard to increase its Internally Generated Revenue.

    He said the goal was to ensure that Internally Generated Revenue would take care of salaries and emoluments while the state’s share from the Federal Account Allocation Committee (FAAC) would take care of capital expenditure.

    Other Bills signed into law were the State Multi-Door Court House Bill and the State Engineering Project Monitoring and Control Board Bill

    According to Uduaghan, the Multi Door Count House Bill would promote alternative dispute resolution in the state, quicken the dispensation of justice and provide alternative mechanism for the resolution of disputes.

    He also said that the Delta State Engineering Project Monitoring and Control Board Bill would ensure that standards are maintained in the design and execution of engineering projects in the state.

     

  • ‘Why some states are yet to pass their budget’

    THE inability of states to key into the intricacies of the new financial reforms in the country as well as float an effective Internally Generated Revenue (IGR) programme are some of the reasons many states are yet to pass their 2013 budget, The Nation has learnt.

    A Commissioner of Finance from the Southeast explained that the delay stemmed from transiting to the new Medium Term Expenditure Framework (MTE), which is new to states.

    He said many of the governors, commissioners of finance, state budget offices and state legislators were learning the details of MTE.

    The new financial reform and the global fiscal responsibility provisions, he said, have been instituted to guide states in the preparation of their budgets.

    The norm is that the budget is passed by the end of the year so that it becomes effective in the New Year.

    However, in 2013, the commissioner said many states including those that had passed their 2013 budgets made their projections on the basis of last year in anticipation of when the new budget is passed.

    He lamented that many states were slow in preparing their budgets for this year, because they failed to use last year’s or 2010 budget as a guide in the preparation of the new budget, adjustments, which he said “can be made after if there are variations between the projections and what actually manifests.”

    Another reason for the delay in the take-off of the budget in many states was the “horse trading between governors and legislatures like at the federal level.”

    Another Commissioner of Finance from the Southwest noted: “A lot of states totally depend on the federal budget before they prepare their own.”

    States with vibrant Internally Generated Revenue (IGR) programme, the Finance commissioner said, “have prepared and passed their budget, but others are waiting for the Federal Government budget.”

    The commissioner disclosed that many states got their fingers burnt in the 2012 fiscal year when they assumed that the Federal Government would implement its planned deregulation policy.

    The failure of the deregulation policy the commissioner said affected some state governments’ budgetary process for the year. Consequently, he said states decided to be cautious, especially with the benchmark this year’s budget that had caused a rift between the executive and legislators.

    “Last year, some states expected deregulation, but when it did not materialise they were disappointed so they had to adjust their budget. They do not want that to happen to them again this year. That is why the budget is being delayed.”

    All the states have presented their budgets to their various state assemblies, but only a handful ,such as Lagos, Ogun, Anambra and Delta states have started implementing their 2013 budgets.

     

  • Council presents budget

    Council presents budget

    Chairman, Ojodu Local Council Development Area, Hon Olumuyiwa Oloro has presented a budget of N1.6 billion tagged Budget of Empowerment and Commitment to the Legislative Arm of the council for consideration.

    Reviewing the previous year’s budget, the council chief said: “The council managed within an approved budget estimate of N1,642,715,860. A total sum of N61,295634:65 was realised from internally-generated revenue while the sum of N520,311,683:46 was received as grant from both the state and Federal Government.”

    The personnel recurrent expenditure cost for the year 2012 stood at N323,434,223:53 while the overhead recurrent cost was N270,792,892:80.

    The capital expenditure approved was N687,000,000:84 but the council realised N181,554,234:26.

    For 2013 budget, he said its objective is commitment to service delivery and to harness the resources to develop the environment through infrastructural development and empowerment.

    The projected revenue is N1,642,715,860. Allocations from federal and state governments is N1,577,715,860 while internally-generated revenue is N65,000,000.

    The personnel recurrent cost is N340,058,025 while the overhead recurrent cost is N529,775,000. The total sum of N869,833,025 would be spent on recurrent expenditure.

    A total sum of N772,862,835 shall be the total capital expenditure.

    He said that to whom much is given, much is expected.

    For us to achieve the target set in this budget, we require the commitment of everybody to contribute positively by paying their rates and levies promptly as these would enable us to execute our projects and programmes towards the physical development of our local development council”.