Buhari seeks extra N466b for subsidy, others

PRESIDENT Muhammadu Buhari  has sent a letter to the National Assembly seeking approval for N465.64 billion as supplementary budget for the 2015 fiscal year to among others, pay petroleum subsidy claims amounting to N413, 363, 134, 505.
In the letter addressed to the Senate President, Dr Bukola Saraki, Buhari said: “Mr. Senate President, you may wish to recall that the 2015 budget was predicated on oil production of 2.2782 million barrels per day. Benchmark oil price of 53 dollars per barrel and an exchange rate of N190 per dollar. Based on these three assumptions, the following fiscal budget was projected:
* FGN budget revenue N3.452 trillion made of share of oil and mineral revenue. N 1.645 trillion, share of non-oil revenue. N1.215 trillion, FGN Independent Revenue of N489.3 billion;
* FGN aggregate expenditure was estimated at N4.485 trillion, comprising of statutory transfers – N354.34 billion debt service, N953.6 billion, recurrent (non-debt) personnel cost. N1.828 trillion recurrent (non-debt), overhead of N791. 2 billion and Capital expenditure of N536. 6 billion.
“However, the implementation of the FGN 2015 budget has been flawed with significant revenue shortfalls due to continuous decline in oil price, oil production shortfall and non full realisation of 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 required urgent funding is projected at N465.64 billion.”
The letter added:“Call for additional borrowing: The expected deficit arising from the above is projected at N2.103 trillion or 2.19 per cent of GDP to be financed by additional borrowing of N1.601 trillion through the debt management office.
“Accordingly, I deem it necessary to formally request the concurrence of the National Assembly to please consider and approve an upward review of the fiscal deficit from 1.09 per cent of GDP to 2.19 per cent of GDP; an upward revision of the new borrowing from N882.1 billion to N2.103 trillion and a new funding requirement to address security challenges and other important obligations with the sum of N465.64 billion”.