Why Buhari signed 2022 budget despite changes by National Assembly – Presidency

The Presidency has explained why President Muhammadu Buhari signed the 2022 budget despite alterations of the estimates by the National Assembly.

The President, who signed the budget on Friday, expressed concern at the introduction of 6,576 new schemes worth N37 billion in the budget by the parliament.

The Senior Special Assistant on Media and Publicity to the President, Garba Shehu, who made the clarification in a statement issued on Sunday, noted that although Buhari disagreed with the National Assembly over the changes made in the budget, he was not in conflict with the lawmakers.

He said: “Given Mr. President’s commitment to improving the lot of the common man, it was felt that it would not be wise to throw away the baby with the bathwater.

“Mr. President was clear and candid in expressing his reservations with the numerous changes to the 2022 budget made by the National Assembly, which would hamper its implementation.

However, to respond to critics that question why assent to the budget if it was so severely tampered with, we wish to respond as follows:

“Need to Save Value-Additive Projects, Programs & Policies:

“Although over 10,733 projects were reduced and 6,576 new projects were introduced into the budget by the National Assembly, there are tens of thousands more provisions in the 2022 budget, all of which, when efficiently and effectively implemented, will have a significant developmental impact on the lives and livelihoods of ordinary Nigerians.

“Ongoing Capital Projects, Critical Recurrent Votes, Priority New Projects – all featured in the 2022 budget and Mr. President’s forbearance in assenting to the budget will save these provisions from implementation delays and other challenges.

“President Buhari is a democrat who deeply believes in the supremacy of the Constitution, with its checks and balances across the three arms of government.”

The presidential aide insisted that disagreements amongst the arms of government were normal and would lead to actionable plans to better the economy.

Shehu added: “While we note that there are people who are trying to create a fiasco between the two arms of government on account of the budget, we assure that they will, in the end, be disappointed.

“The Executive and the 9th National Assembly have since moved away from the wild, destructive political games of the past, conducting themselves in a way that puts national interest supreme in their decisions.

“We doubt if there is a patriotic citizen who wants to see the return of the operating environment engendered by the 8th Senate when an elected government was held in chains, held hostage to the desperate political ambitions of a clique, and the public denied needed services including that which impinged on national security.

Happily, this situation has not arisen during the tenure of Mr. President’s administration, and the Executive’s relationship with the Leadership of the 9th National Assembly is much improved over what happened with the 8th National Assembly.

“It is on account of his confidence in the strength of this excellent working relationship that Mr. President has directed that an Amendment of Budget Proposal should be prepared and submitted to the National Assembly, once they return from their recess.

“It is hoped that the National Assembly will carefully consider and approve the 2022 Amendment Budget Proposals, once presented to them in due course, for the benefit of all Nigerians.

“It is important therefore that, in place of ‘anger’ or confrontation, President Buhari showed the democracy-loving side of his personality as he signed the budget at the same time calling for dialogue with the parliament to resolve the contentious issues.

“The Presidency under Muhammadu Buhari and the parliament under Ahmad Lawal and Femi Gbajabiamila are committed to a good neighbourly relationship and this or any other disagreement between the two arms of government will not alter the dynamics of that relationship.”

FEC approves N13.08trn budget proposal for 2021, transmits to NASS on Thursday

The Federal Executive Council (FEC) on Wednesday in Abuja approved budgetary proposal of N13.08trillion for 2021 fiscal year.

The Minister of Finance, Budget and National Planning, Hajiya Zainab Ahmed, made this known when she briefed State House correspondents on the outcome of the Council meeting.

She explained that the total aggregate revenue projected for the 2021 budget was N7.89 trillion with a deficit of N4.48 trillion.

According to the minister, the total capital expenditure projected in the budget is 29 percent of the aggregate expenditure, saying the 29 per cent is an improvement over the 24 percent projected in budget 2020.

“We have a total aggregate revenue of N7.89 trillion and also an aggregate expenditure of N13.08 trillion for 2021. about:blank

“There’s a fiscal deficit of N4.489 trillion, this represents 3.64%, slightly above what is required by the Fiscal Responsibility Act of 3% and also to report that the total capital expenditure that is projected in the Budget is 29% of the aggregate expenditure.

“This is an improvement over the 24% that we had in the 2020 Budget, but slightly below the 30% that we targeted in the economic recovery.

“Just to clarify that the 1.86 million barrels per day crude oil production includes 400,000 condensate, so we have complied with the OPEC quota, which is placed at about 1.5 million barrels per day. So the 1.46 is in meeting with the OPEC quota,’’ she said.

The minister disclosed that the performance of the 2020 budget, as at July for revenue, was 68 per cent, while its performance for expenditure was 92 per cent.

“The performance of the 2020 Budget as at July, for revenue, was 68 per cent We had a 68 per cent revenue performance prorated to July.

“The performance of expenditure, on the other hand, was 92.3 per cent and that is to say salaries were fully paid, pensions were paid, debt service was made, as well as transfers classified as statutory.

“In presenting the Budget 2020, we had to report to Council some slight changes that need to be made on MTEF 2021/2023, which has since July been sent to the National Assembly by Mr President.

“Specifically, the exchange rate is going to be changed from 360 that we initially presented and submitted to Council and to the National Assembly, up to 379.

“The reason why this is happening is due to the exchange rate movement that the CBN has put in place.

“Also, there were some slight changes on miscellaneous revenues and signature bonuses after interaction with DPR, which resulted in some increase in revenue,’’ she added.

The minister stated that the 2021 budget proposal was aimed at enhancing inclusive growth and also to achieve the key objectives of government.

She said: “The total budget proposal that is made for 2021 is to enable us to attain a more inclusive growth and also to achieve the key objectives of government.

“These include; stimulating the economy, creating jobs, enhancing growth and creating infrastructural investment, also promoting manufacturing and local production.’’

The minister further revealed that the budget assumptions that were presented to Council included the crude oil price benchmark at 40 dollars per barrel; oil production at 1.86 million barrels per day; exchange rate of N379 to $1; GDP growth target of 3 per cent and inflation rate of 11.95 per cent.

She also expressed the hope that Nigeria’s economy would recover to the path of growth early in 2021, “so the total aggregate revenue that is projected for the 2021 Budget is N7.89 trillion and what is unique about the 2021 Budget is that we have brought in the budgets of 60 government-owned enterprises.

“If you recall, in 2020 we brought in 10, now we have brought in 60.

“These 60 exclude NNPC and the Central Bank and the reason being NNPC, a national oil company, internationally national oil companies are not included in the national budget.

“Also, the CBN is an autonomous body. Only those two are excluded, 60 government-owned enterprises included.

“That is to say their revenue and all categories of expenditure are now integrated in the Budget.’’

On the effect of COVID-19 on the 2021 budget proposal, the minister said provisions had been made in the budget to address such challenges.

She said: “The 2021 budget has been able to make more provision for human capital development. So, the Ministry of Health for example has its provision almost doubled.

“The Ministry of Education has a significant increase. The details of the budget will be provided to the country after Mr President submits the budget which we hope might be on the 8th of October. So, the details will be out.

“And following Mr President’s submission, the Ministry of Finance, Budget, and National Planning will also engage in a world press conference to provide the details.

“But what is unique about this is that the provision for human capital development, especially health is doubled.”

The minister disclosed that the budget proposal would be transmitted to the National Assembly on Thursday