President Goodluck Jonathan on Tuesday presented a budget of 4.7 trillion naira to the Joint Session of the National Assembly.
The sum of 2.4 trillion naira is for recurrent (non-debt) expenditure, while capital expenditure is 1.3 trillion naira representing 15 percent over the 2011 budget approval. The aggregate expenditure comprises 398 billion naira for Statutory Transfers, 560 billion naira for Debt Service underscoring the real need to address the rising domestic debt profile.
The gross federally collectible revenue is projected at 9.4 trillion naira, of which the total revenue available for the Federal Government’s Budget is forecast at 3.644 trillion naira.
Oil production of 2.48 million barrels per day up from 2.3 mbpd for 2011, while the benchmark oil price of 70 U.S. dollars per barrel, a cautious revision from the 75 dollars barrel approved in the 2011 Amended Budget.
The exchange rate of 155 to a dollar is proposed, while a projected GDP growth rate of 7.2 percent and inflation rate of 9.5 is being projected.
Based on the above, the fiscal deficit is projected at about 2. 77 percent of GDP in the 2012 budget compared to 2.96 percent in 2011.
Allocations to some critical sectors of the economy are, Security 921.91 billion naira, Power 161.42 billion naira, Works 180.8 billion naira, Education, excluding Universal Basic Education Commission, Petroleum Technology Development Trust Fund (PTDF) and Education Trust Fund 400.15 billion naira, Health 282. 77 billion naira, Agriculture and Rural Development 78.98 billion naira.
Others are, Water Resources 39 billion naira; Petroleum Resources 59.66 billion naira, Aviation 49.23 billion naira, Transport 54.83 billion naira; Lands and Housing 26.49 billion naira; Science and Technology 30.84 billion naira; Niger Delta 59. 72 billion naira, Federal Capital Territory Administration (FCTA) 45.57 billion naira and Communications Technology 18.31 billion naira.
President Jonathan said the 2012 budget was based on a set of assumptions reflecting government’s determination to maintain prudence in the face of continued uncertainties in the external environment.
According to him, government needed 32 trillion naira for the execution of capital projects over a four year-period, of which the private sector would contribute 13 trillion naira.
“In this respect, we are creating the enabling environment to attract private investments by having a clear regulatory framework, ” he told the lawmakers.