President Muhammadu Buhari yesterday submitted a supplementary budget of N465.64 billion to the Senate for consideration and approval to make up for the shortfalls of the 2015 budget. He also sought the approval of the senate for additional N1.06trillion loan to enable government meet the current challenges of his administration.
Out of the N465.6 billion supplementary budget, a total of N413.363 billion has been earmarked as payment of subsidy for premium motor spirit, PMS.
Specifically, the President asked the upper legislative chamber to do an upward review of the nation’s borrowing plan from N882.1 billion to N2.103 trillion, as the current plan was no longer tenable, in view of the dwindling revenue profile, stemming from the crash of oil price globally.
In a letter he sent to the Senate, which was read on the floor by the Senate President, Buhari recalled that the 2015 budget was predicated on oil production of 2.2782 million barrels per day.
He also reminded the upper chamber that the budget of the current year was hinged on a benchmark oil price of 53 dollars per barrel and an exchange rate of 190 Naira per dollar.
But in the current proposal, Buhari noted that the benchmark had now been reviewed down to $48; foreign exchange remains N190 to a dollar while oil production volume had been reduced to 2.2003 million per day.
He explained that the total N1.041 trillion or 1.09 per cent of the gross domestic product (GDP) with the deficit largely financed by domestic borrowing of N502.1 billion and foreign borrowing of N380 billion in the 2015 budget aggregated in a total borrowing sum of N882. 12 billion.
He stated that the expected deficit arising from the above figure is projected at 2.103 trillion or 2.19 per cent of GDP to be financed by additional borrowing of 1.601 trillion through the debt management office, DMO.
Buhari therefore requested for an upward review of the fiscal deficit from 1.09 per cent of GDP to 2.19 per cent of GDP as well as an upward revision of the new borrowing from 882.1 billion to 2.103 trillion.
He said the supplementary budget of N465.64 billion was meant to address security challenges and other important obligations confronting the country under his administration.
While giving a breakdown of 2015 budget and its shortfall, Buhari said in the letter: “Federal government of Nigeria’s budget revenue of N3.452 trillion made up of the share of oil and mineral revenue of 1.645 trillion, share of non-oil revenue of N1.215 trillion and revenue of N489.3 billion”.
“Federal Government of Nigeria’s aggregate expenditure was estimated at N4.485 trillion, comprising of statutory transfers of N354.34 billion; debt service of N953.6 billion; recurrent-non debt personnel cost of N1.828 trillion; recurrent non-debt overhead of N791. 2billion and capital expenditure of N536. 6billion.
“However, the implementation of 2015 budget has been flawed with significant revenue shortfalls due to continuous decline in oil price, oil production shortfall and non-full non-oil revenue.
“You may wish to further note that owing to the need to sustain the current progress in addressing the security challenges and other important obligations of government, emergency expenditure items require urgent funding are projected at N465.64 billion,” Buhari said.
He lamented that the implementation of the 2015 budget had been flawed with huge revenue shortfalls, sequel to the progressive decline in oil price, oil production shortfall and non-full non-oil revenue.
Senate President after reading the letter, sent the request to the Senate Committee on Appropriations for further legislative action.
Addressing journalists at the end of the plenary session, the Senate Spokesman, Senator Aliyu Sabi, assured that the Senate would give it expeditious treatment, so that the contending problems in the polity, including the current fuel scarcity would be promptly addressed

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