GEJ Presents N4.22B 2011 Budget To NASS

ABUJA, Dec 15, (THEWILL) - President Goodluck Jonathan today presented a N4.22trillion 2011 budget bill to a joint session of the National Assembly christened; 'Budget of fiscal consolidation, inclusive economic growth and employment generation'

The budget he said marked a deliberate reduction in budgeted expenditure from N5.159.66 trillion approved in the 2010 amendment and supplementary budgets, comprising of N196.12billion for statutory transfers, N542.38billion for debt service, N2.481.71trillion for recurrent (non-debt) expenditure and N1, 005.99trillion for capital expenditure.

This budget the President added represents an 18.1percent contraction from the N5.159.66 trillion appropriated by the 2010 amendment and supplementary budgets.

However, President Jonathan stated that the N1.005.99 trillion voted for capital expenditure compares favourably with the N919.5 billion actually utilized in the extended 15 months of the 2009 fiscal year, which is the largest amount of capital resources utilized by the MDAs in any fiscal yea to date, he added.

The budget expenditure plans he stated indicates that the 2011 fiscal balance will be a projected deficit of 3.62 percent of GDP.

"New spending obligations such as the recent public service wage increases have contributed to the size of the deficit. However, government is mindful of the need to respect the deficit threshold recommended by the Fiscal Responsibility Act, hence our policy of gradual fiscal consolidation to bring the deficit within the limits prescribed by our rules", he said.

Photo: President Goodluck Jonathan greets Speaker Dimeji Bankole and Seate President David Mark.

The macroeconomic assumptions underpinning the 2011 budget is predicated on the outlook for the incoming fiscal year and expectations for improvements in domestic oil production, stability in the international oil markets and sustained economic growth. These includes; Oil production of 2.3million barrels per day, Benchmark oil price of US$65 per barrel, exchange rate of NGN150 to US$, Joint Venture cash calls of US$5.4billion and Projected GDP growth rate of 7percent.

"Following from these assumptions and the operation of the revenue sharing formula, the total revenue for the Federal Government's budget is forecast at N2, 836.43trillion. The rise in expenditure in 2010 was a result of the exceptional items such as the INEC voter's registration exercise. The implications of the increased recurrent vote for the deficit, have informed the government's policy of gradual fiscal consolidation, commencing in the 2011 fiscal year", he stated.

Photo: President Jonathan waves to admirers at the National Assembly. With him are Vice President Namadi Sambo(R) and Senior Special Adviser to the President on NASS, Senator Abba Aji.