President Goodluck Jonathan today signed the 2012 budget into law. Consequently, Nigeria will be spending N4.697 trillion in 2012 as passed by the National Assembly on March 15. It is made up of capital expenditure of N1.34 trillion and recurrent expenditure amounting to N3.357 trillion. In addition to the N4.697trn, the government will spend another N180bn representing gains from the partial removal of fuel subsidy in the SURE programme. The capital expenditure of N1.34 trillion represents 28.5 percent of the aggregate expenditure.
The total Federal Government revenue forecast is N3.561 trillion based on a benchmark Oil Price of US$72 per barrel, US$2 higher than the initial proposal of US$70 per barrel. Non-debt Recurrent Expenditure is at N2.425 trillion, which is 52 percent of the total budget, compared to 54 percent of the aggregate budget in 201; while. Statutory Transfers is N372.59 billion. According to President, this is “in line with Government’s medium-term strategy.”
Share of the recurrent spending in aggregate expenditure has declined from 74.4 percent in 2011 to 71.5 percent in 2012. The deficit is 2.85 percent of GDP, which is in line with the provisions of the Fiscal Responsibility Act, 2007, which pegs this at 3 percent of GDP.
The President had on December 13, 2011, presented a budget with a total expenditure of N4.749 trillion based on a benchmark oil price of US$70 per barrel to the National Assembly for appropriation. The sum of N1.32 trillion was proposed for capital expenditure while N3.429 trillion was for recurrent expenditure.
According to Jonathan, Initially, 2012 Budget Proposal was based on full deregulation of the downstream petroleum sector. “However, after listening to the voice of Nigerians, we opted for partial subsidy removal.” As a result, the government reviewed the budget’s revenue and expenditure projections and provided for N888 billion in the Budget for subsidy.
Jonathan assured Nigerians: “One of the main goals of this administration is to complete and exit the large stock of ongoing projects and programmes. Thus, the 2012 budget is focused on completing viable ongoing projects, in accordance with the Transformation Agenda, which will quickly deliver tangible and significant added value to Nigerians.”
According to him, the budget is geared toward supporting economic growth and employment creation.
