President Goodluck Jonathan on Tuesday requested a supplementary budget of N161, 617, 364, 911bn to maintain a steady flow of petroleum products, 19 days to the end of the year.
In a letter read on the floor by of the Federal House of representatives by Speaker Aminu Waziri Tambuwal, Jonathan stated that the sum of N880,264,243,683.61 has been paid out, leaving a balance of N7,735,756,316.39 for 2012 subsidy payment.
“The Rt. Hon. Speaker will recall that as part of the 20I2 budget framework, a provision of N888.Ibn was made for payment of fuel subsidy for the nation. I wish to intimate the Honourable House of Representatives of the fact that, following the forensic audit carried out, the provision for fuel subsidy in the 2012 Budget was underestimated,” read a part of the letter.
“As at now, the sum of N880,264,243,683.61 has been paid out, leaving a balance of N7,735,756,316.39. In order to accommodate the outstanding arrears resulting from the forensic audit exercise and the remaining period of the year 2012, an additional sum of N161,617,364,911 over and above what was programmed to the 2012 framework is required.
“Given the need to maintain a steady flow of petroleum products, especially in the run-up to the festive season, it is my hope that the Honourable Members will kindly accord this request their traditional expeditious consideration and approval.”
Speaking on matter of urgent public importance, Rep Abdulrahman Abba Terab (ANPP, Borno) in a motion titled, The need to ensure the conclusive implementation of the 2012 Appropriation Act, lamented that Nigeria has an infrastructural deficit of over N4trn and a very high unemployment rate of over 70 per cent.
He also expressed concerns that the country’s Budget Based Growth Indices have, in the recent past, laid more emphasis on foreign influenced economic models based on Gross National Product (GNP), rather than Human Development Index and Infrastructural Growth Index, which have more impact on the internal factors that reduce poverty, create jobs and encourage industrial growth.
“We are concerned that the revenue receipts so far for 2012 confirmed to be higher than what was projected for the 2012 fiscal regime. Consequently, the fourth quarter capital releases made to MDAs just this December despite being inadequate on the percentage of budget implementation were found to be inconsistent, hence only about 30 per cent of the allocated value were actually remitted to the MDA’s,” he said.
“At this moment in December, we cannot fully claim capital releases to average 60 per cent across the board to MDAs. Various sums of money saved from recovery exercises, non-oil excess revenues, and the 2012 unspent revenues and others like the FPPIS, Pension Reform and fake subsidy claims are neither captured in the 2013 appropriation nor are they provided as opening balances in the 2013 expenditure accounts.
“The executive once blamed its poor releases and subsequent implementation on constituency projects where monies were appropriated for basic grassroots social services like water, roads, schools and hospitals. This is rather unfortunate.”
Terab warned that if the lawmakers do not rescue the 2012 budget, the country’s dream of becoming one of the 20 great economies by the year 2020 will no longer be achievable, as consistent missing of target plans only translates to failure to achieve the desired result.
He, therefore, urged the lawmakers to direct the House Committee on Finance and Appropriation to compile and present a comprehensive report on the revenues, expenditures, and any unforeseen savings in the 2012 budget implementation, and also proffer solutions to the outstanding capital releases in the 2012 budget to ensure its full implementation.
