Home » Latest Politics, Oil Politics » FG seeks approval for N180bn Subsidy Removal Investment Fund •Slashes 2012 budget by N100bn

FG seeks approval for N180bn Subsidy Removal Investment Fund •Slashes 2012 budget by N100bn

THE Federal Government has reduced the 2012 budget estimates from the initial N4.749 trillion to N4.648 trillion in its revised budget estimates submitted to the National Assembly on Tuesday.

President Goodluck Jonathan, in a letter sent to the President of the Senate and the Speaker of the House of Representatives said that the new budget was in conformity with some national realities.

It also emerged that the Federal Government has reduced the proposed spending on the Subsidy Re-investment and Empowerment Programme (SURE) to N180 billion, instead of the proposed N1.3 trillion, which was the projection if petroleum subsidy had been removed entirely.

In a  letter dated February 15, 2012, addressed to the Senate President, David Mark, President Jonathan  said that the revised budget was a confirmation of government’s plan to revise its 2012-2014 revenue framework.

The letter, which was read by Deputy Senate President, Senator Ike Ekweremadu, who presided over Tuesday’s sitting read in part: “I seize this opportunity to express my gratitude for the enduring productive partnership between the National Assembly and the Executive arms of government in discharging our shared responsibility for nation-building and I note, with thanks, the patriotism commitment and support that the distinguished members of the Senate have consistently demonstrated.

“Recent domestic developments, key among which was the partial withdrawal of subsidy on petroleum products and the ripple effect on government revenue and expenditure items, have necessitated the revision of the 2012-2014 Medium-Term Expenditure Framework and the 2012 budget proposal which I presented to the National Assembly on December 13, 2011.

“In this respect, I hereby forward copies of the revised 2012 budget proposal. It is my hope that the distinguished Senate will kindly consider and approve these revised proposals expeditiously.”

The new budget shows that recurrent expenditure for 2012 stands at N2.432 trillion, while capital votes stand at N.284 trillion. It also shows that sum of N372.5 billion would be for statutory transfers while the government intends to commit N559.5 billion to debt service.

Meanwhile, it emerged on Tuesday that the Senate is set to summon all ministries affected by the huge cuts in the 2012 budget.

Sources in the Senate said that the lawmakers who had earlier listened to budget defence by the ministries will further review the new figures and the effects on the ministries.

From the new budget proposal, N372,593,095,601 is for Statutory transfer against the old figure of N397,929,101,917, while the figure of N559,580,000,000 for debt service was not touched.

The recurrent expenditure was reduced by N39.3 billion, as shown by the old figure of N2,471,814,067,335 against the new figure of N2,432,432,108,877.

While the capital expenditure for 2012 was reduced by N35.5 billion from the initial N1,319,777,651,919 to N1,287,243,952,454.

-Tribune

Short URL: http://newnigerianpolitics.com/?p=18072

Posted by on Feb 21 2012. Filed under Latest Politics, Oil Politics. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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