The Federal Government will spend a total of N4.77 trillion in the
2014 fiscal year with the consolidated capital budget for next year
projected at N1.45 trillion.
Recurrent expenditure for next year is N2.373.291 trillion while the
total budget, net of SURE-P is expected to be N4.495.115 trillion. If
the SURE-P budget of N274.340 billion is included, government will now
spend a total of N4.769.455 trillion.
As contained in the 2014-2016 Medium-Term Expenditure Framework
(MTEF) and Fiscal Strategy Paper (FSP), President Goodluck Jonathan
submitted to the National Assembly, federal revenue for next year is
projected at N10,519.27 trillion out of which N6,814.43 trillion is
gross oil revenue, while non-gross oil revenue is N3,288.58 trillion.
For next year, the government targets N250.71 billion from
non-Federation Account levies, another N156.16 billion from Education
Tax and N9.390 billion from National Information Technology Development
Fund.
The 2014 budget is predicated on sale of 2.2883 million barrels of
oil per day with the oil benchmark at $74 per barrel and an exchange
rate of N160 to the dollar.
As contained in the MTEF/FSP, the Excess Crude Account (ECA) fell
from $9 billion to $5 billion within two years. Government explained
that, “the balance in the Excess Crude Account (ECA) increased from
$4.22 billion in August 2011 to about $9 billion at the end of 2012.
This has, however, declined to about $5 billion in June 2013, following
series of draw-downs to meet the revenue shortfalls arising from the
disruption to oil production, with the ECA performing precisely the type
of buffering it was designed to perform.”
“Sequel to extensive consultations with the Nigerian National
Petroleum Corporation (NNPC) and taking account of the lingering
challenges of crude oil theft, illegal bunkering and production of
shut-ins which have continued to pose a challenge to government’s
finances, but with some expectation that government’s remedial action
will bear some fruit, we have projected crude oil production for 2014 at
2.3883 million barrels per day. This figure is lower than the 2.526mbpd
budgeted in 2013.
“It is hoped that government’s efforts at tackling the problem will yield further results in the medium term…
“Accordingly, we propose a benchmark oil price of $74 per barrel for
2014, $75 per barrel for 2015 and $76pb for 2016; having taken into
account of the outlook of weakening future prices occasioned by rising
oil and unconventional supplies, as well as slow economic recovery.
“Implementation of the 2013 budget is on course. As at the end of the
second quarter of 2013, a total of N600 billion has been released for
implementation of capital projects with cash backing of N598.89 billion
due to the revenue challenges occasioned by reduced inflows from oil and
non-oil revenue sources.
“Of this amount, actual utilisation as at end of July 2013 was 71.5%.
The pace of implementation is expected to pick up in the course of the
year. In addition, another N250 billion has been released in the thid
quarter capital warrant, bringing the total for the year so far to N850
billion.
Meanwhile, there would be no new capital projects for next year while
Senate will, today, confront the Presidency over the comments
attributed to the Minister of State for Finance, Yerima Lawal Ngama,
that the N4.987 trillion 2013 budget is no longer implementable. Deputy
Minority Leader, Senator Abdul Ningi, will, today, raise a motion on
the matter in the chamber.
Culled from The Sun
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