Nigerian National Assembly Pass N4.608 Trillion Budget For 2010

ABUJA March 25, (THEWILL) - The Nigerian National Assembly has at last passed a N4.608 trillion budget for the 2010 fiscal year.

The budget is based on projected Federal revenue of N3.086 trillion resulting in a deficit of N1.521 trillion.

The overall expenditure profile is N529 billion higher than the initial N4.079 trillion budget originally presented by ailing President Umaru Yar’Adua in November 2009.

The passage of the new figure followed the adoption of the report of the Committees on Appropriation of both the Senate and the House of Representatives, which presented a harmonized bill in their respective chambers.

Consideration and passage of the budget was delayed as the legislature had to wait for additions and adjustments made by the Executive under Acting President Goodluck Jonathan to adequately take care of some developmental projects.

While the Executive added a total of N336 billion to the bring the budget to N4.415 trillion, the Legislature made further addition of N193 billion to bring the 2010 budget to a total of N4.608 trillion.

The budget is based on an oil benchmark of $67 per barrel as against $57 initially proposed by Yar’Adua and predicated on estimated production of 2.350 million barrel of crude per day as against 2.088 million barrel initially proposed.

Revenue projection is retained at an exchange rate of N150 to the US dollar as originally proposed by Yar’Adua.

The N1.521 trillion deficit is to be financed by Domestic borrowings of N897 billion, Federal Government share from the Excess Crude Account put at N309. 13 billion, Federal Government share of signature bonus of 2010 bid rounds projected at N132. 312 billion and additional N107 billion expected from proceeds from privatization of government firms.

Other financing instruments include N75 billion expected from the $500 million International Bonds and N9.56 billion expected from the sale of government property.

Chairman Senate Committee on Appropriation, Senator Iyiola Omisore said the increase is to provide ample funds for infrastructural development in some critical sectors, which were not adequately provided for in the initial appropriation bill.

Last correspondence from the Executive for adjustment in the budget he said was received two weeks ago.

Out of the N4.608 trillion, a total of N2.077 trillion was approved for recurrent expenditure while N1.853 trillion was passed for capital expenditure as against N1.022 trillion passed in 2009.

A total of N497 billion was approved for debt services while N180. 2 billion was approved for statutory transfers.

Out of the N1.853 trillion capital vote, Ministry of Works and Housing received the highest allocation of N N211. 231 billion, followed by Power, which has a total of N189.783 billion and Agriculture and Water Resources which received a total of N149. 900 billion.

Federal Capital Territory received N138.360 billion for developmental projects.

Out of the N180 billion vote for statutory transfers, N91 billion is approved for the National Judicial Council, N44 billion is passed for the Universal Basic Education, while a total of N35.624 billion and N9.312 billion have been passed for the Niger Delta Development Commission (NDDC) and NDDC arrears of shares for excess crude distribution in 2009 respectively.