TheNewsGuru

Tag: 2019 Budget

  • 2019 budget: Buhari to preside over Special FEC session Friday

    2019 budget: Buhari to preside over Special FEC session Friday

    A special Federal Executive Council (FEC) meeting will hold on Friday to finalise works on the 2019 budget, the Presidency has announced.

    President Muhammadu Buhari will preside over meeting which is to exhaustively deliberate on the budget before transmitting it to the National Assembly for passage.

    The Council had in October approved the 2019-2021 Medium Term Expenditure Framework, MTEF, and Fiscal Strategy Paper, and forwarded same to the National Assembly for its consideration and approval.

    The Special Adviser to the President on Media and Publicity, Femi Adesina disclosed this to State House Correspondents at the end of FEC meeting presided over by the Vice President, Yemi Osinbajo at the State House Villa, Abuja.

    It will be recalled that, the Minister of Budget and National Planning, Udoma Udo Udoma, had last month announced that the federal government was considering a leaner 2019 budget of N8.6 trillion, which is leaner than the N9.1 trillion approved by lawmakers for 2018.

    He explained at a consultative forum on the medium term expenditure framework (MTEF) and fiscal strategy paper (FSP) 2019-2021, that the decision was due to reduced government revenue projection for the year.

    Udoma also said government planned to cut down the level of borrowing from N1.6 trillion in 2018 to N1.5 trillion in 2019, while the deficit component would be reduced from N1.9 trillion in 2018 to N1.6 trillion.

    In spite of the recent oil output drop to about 1.9 million barrels a day, Udoma said government was optimistic the 2.3 million barrels a day target was achievable with production now rising to about 2.15 million barrels a day and new oil productions being put into play.

    Although a $50 per barrel oil price benchmark was proposed in the ERGP, the minister had expressed confidence that with a significant rise in the price above $80 per barrel currently, government has proposed a $60 per barrel oil price for the budget.

    Udoma has added that N305 was proposed as exchange rate to the dollar, with government working to keep inflation down after slight increases in the last two months on the heels of 18 months consecutive decline.

    The projected target gross domestic product (GDP) growth rate for the budget was put at 3.01 per cent, reduced from 4.5 per cent in the ERGP; 3.6 per cent in 2020 and 3.9 per cent in 2021.

    “Growth is expected to increase from 0.8 per cent in 2017 to 2.1 per cent this year and 3.01 per cent in 2019 with the continued implementation of the ERGP in 2019 and improved outlook for oil prices,” he said.

    On revenue, Udoma had said based on the oil price and oil production assumptions, government expected to generate about N3.6 trillion from oil, up by about N500 billion from last year’s figure.

    About N6.9 trillion revenue is projected to be available to the budget in 2019.

    With other projections showing government expects to collect less revenue from some independent sources, he said only about N624 billion is expected to be realised, against about N847 billion in the 2018 budget, among others.

  • Kaduna Assembly passes 2019 appropriation bill

    The Kaduna state House of Assembly has passed the state 2019 appropriation bill with an increase of about N1.5 billion bringing the total figure to N157 billion.

    Gov. Nasir El-Rufai had on Aug. 15, presented a budget of N155 billion to the house for consideration.

    While presenting the budget for the third reading before the passage, the Speaker Alhaji Aminu Shagali said the sum of N62 billion which represents about 40 per cent is for re-current expenditure, while N94 billion which is about 60 per cent is for capital expenditure.

    Speaking shortly after the passage, Chairman, House Committee on Appropriation, Ahaji Ahmed Mohammed said the increase was due to additional requests from Ministries, Department and Agencies (MDAs) for funding.

    He explained that some of the requests were considered at end of the budget defence exercise adding that the additional fund would also be use to carter for oversight duties which covers both re-current and capital expenditures.

    He assures residents of the state that the house was committed towards ensuring that the budget is properly implemented.

  • Breaking: Obaseki proposes N175bn 2019 budget for Edo State

    Breaking: Obaseki proposes N175bn 2019 budget for Edo State

    Governor Godwin Obaseki of Edo on Monday presented a budget proposal of N175 billion for 2019 fiscal year to the state House of Assembly.

    The budget proposal is 9.2 per cent above the 2018 budget of N146 billion.

    The proposed budget tagged: “Budget of Socio-Economic Inclusion’’ has N95.8 billion as capital expenditure, while N79.9 billion is proposed for recurrent expenditure.’’

    The governor said the budget proposal had a deficit of N27.4 billion which would be funded through internal and external financial interventions from the Central Bank of Nigeria (CBN)’s Special programmes and World Bank.

    He said the budget was planned with 60 dollars benchmark crude oil price and increased state internally generated revenue.

    ‘‘The 2019 budget will consolidate on the infrastructural and socio-economic gains of the outgoing year 2018,’’ he said.

    The budget breakdown shows that N42.7 billion is allocated to infrastructure development, N9.3 billion for health, N26.8 billion for education and N7 billion for investment promotion.

    Others are N2 billion for security, N9 billion for payment of pension, while N967 million is proposed for the judiciary.

     

  • Presidency explains why 2019 budget presentation to NASS is delayed

    Presidency explains why 2019 budget presentation to NASS is delayed

    The Presidency has said it has yet to present the 2019 budget to the National Assembly because it is expecting the passage of the Medium Term Expenditure Framework/Fiscal Strategy Paper by the legislature.

    he Senior Special Assistant to the President on National Assembly Matters (Senate) Solomon Ita-Enag, stated this during an interview with journalists in Abuja on Thursday.

    He also denied that the Muhammadu Buhari administration was having the highest turnover of rejected bills.

    According to him, the government has so far considered 100 bills in the last three and half years, insisting it is the highest record by any administration since 1999.

    On the 2019 budget, Ita-Enang said arrangements had reached an advanced stage to transmit the national budget to the legislature.

    He said, “When President Muhammadu Buhari assented to the 2019 budget, he had reservations, but after having understanding with the legislature, he sent in amendments and asked for virement.

    “That (approval) is still being awaited; it has not been done. He (Buhari) has also sent in his requests for other funds for other agencies from virement, which is still pending.

    “He sent in his requests for loan for the approval of external finances through Eurobond and other windows. That has just been approved few weeks ago. They (executive) are in the process of raising money to fund the budget.”

    Ita-Enang explained that in presenting the 2019 budget, the executive would have to take into account the level of the implementation of the 2018 budget so that it would know how to project for next year’s budget.

    He said, “The budget is almost ready. The president has transmitted to the National Assembly the request for the approval of the MTEF and the approval of the Fiscal Strategy Paper.

    “It is the MTEF that set out the budget parameters for the benchmark of oil, the exchange rate, the money projected to realise from solid minerals, internal revenue from oil and borrowings.

    “It is this that enables you to deal with budget projections. That document is pending before the legislature.

    “Since the legislature is still working on the MTEF/FSP document, we are going to use the parameters that we used as the budget benchmark of oil, exchange rate, excess crude projection and other sources of revenue as submitted to prepare the budget.”

    He added, “We will work with the legislature when they eventually pass the MTEF/FSP. That is where we are on the budget but every necessary step has been taken by the executive for the presentation of the document. The budget of 2018 will expire in June next year.”

     

  • Gov. Udom aims to exploit ICT for wealth creation in Akwa Ibom

    Governor Udom Emmanuel said his government is exploiting the option of Information and Communications Technology (ICT), Science and Technology for employment generation and wealth creation in Akwa Ibom state.

    TheNewsGuru (TNG) reports Governor Udom stated this, as part of policy objectives, while presenting a N670.718 billion 2019 budget he proposed for Akwa Ibom before the State House of Assembly on Wednesday.

    The Governor said ICT and the knowledge of science and technology are major catalysts for economic growth, social development and job creation.

    He said science and technology have been recognized as a strategic tool for community development, wealth creation and advancement of the human condition at all levels.

    “This Administration aims to build a strong and rich intellectual human capacity in science and technology for Akwa Ibom citizens without discrimination in gender or age and to emphasize the advancement of knowledge of ICT at all levels,” Udom said.

    He said this would be achieved through the training of unemployed graduates on ICT under the Graduate Assistant Programme (GAP) and setting up of ICT academy for the training of Civil servants in the State.

    “The world today is going green through the adoption, development and use of renewable energy and efficient utilization of nature’s energy resources.

    “Since renewable energy can be used in electricity generation and production of cleaner vehicle fuel. There is a paradigm shift from an energy system powered by increasingly expensive, dirty and unsustainable fossil fuel resources towards the one powered by abundant, clean, local and affordable renewable energy sources.

    “The State is not left behind in the global renewable energy and energy efficiency trend, as a Directorate of Renewable Energy and Energy Efficiency has been created in the Ministry of Science and Technology to specifically develop, install and maintain Renewable Energy Technology in the State.

    “Government also intends to pursue e-governance, establish Resources and Development Laboratory, Technology Workshop. etc.

    “The 2019 budget proposes the sum of N2.800 billion, to execute these activities,” the Governor stated.

     

  • Gov. Udom highlights 13 strategies for Akwa Ibom N671bn 2019 budget

    Governor Udom Emmanuel has highlighted thirteen implementation strategies for the N670.718 billion 2019 budget he proposed for Akwa Ibom before the State House of Assembly on Wednesday.

    TheNewsGuru (TNG) reports Governor Udom christened the 2019 budget as the Budget of Industrialization for Poverty Alleviation.

    He said to realize the objectives of the N670.718 billion budget, the following strategies and measures would be adopted by the State Government in 2019:

    1. Expand the revenue base of the State by eliminating wastages and leakages in expenditure, and improving IGR collection and development of tourism potentials.

    2. Employ effective public-private partnership strategies to provide much needed industrial and infrastructural development.

    3. Attract potential investors and donor agencies to invest in the relevant and key sectors of the State economy and also undertake robust human capital development.

    4. Strengthen the industrial base of the State through the development of a Mega Industrial City “Liberty Free Trade Zone” and 2 mini-AKEES Industrial Parks, which will provide a conducive environment for rapid industrialization.

    5. Setting up of new industries and maintaining existing ones, in the oil and gas, information technology as well as the agro-industrial sectors.

    6. Stimulate the Agriculture and Agro-allied industries to boost production of local farmers to ensure food sufficiency for local consumption, exports as well as the provision of raw materials for the industries.

    7. Pay priority attention to the completion of all on-going projects in the key sectors of the State economy.

    8. Expand and improve services in Health-Care Delivery at Primary and Secondary levels.

    9. Provision of Educational facilities with emphasis on science and technology, as well as information and communication technology.

    10. Enforce Child Protection Laws and empower women and youth through capacity building, empowerment, skill acquisition and elimination of gender discrimination practices.

    11. Enhance service delivery in the public service to ensure that the benefits of good governance are enjoyed by all.

    12. Ensure enforcement of peace, law and order by building an efficient and proactive security network to make the State conducive to live and invest in.

    13. Continue the on-going work on Sport Academy in the State and Sports Centres in the 10 Federal Constituencies of the State in order to boast of representatives of the State at local, National and International Sporting competitions. This will also create employment, generate wealth and reduce poverty among the youths.

     

  • Gov. Udom proposes N671bn budget for 2019 fiscal year

    Governor Udom Emmanuel has proposed a total budgetary outlay of N670.718 billion for the 2019 financial year for Akwa Ibom state as against the approved provision of N646.649 billion of 2018.

    TheNewsGuru (TNG) reports Governor Udom presented the budget proposal before the Akwa Ibom State House of Assembly on Wednesday with recurrent expenditure at N97.096 billion, capital expenditure at N445.936 billion and consolidated revenue fund charges at N127.686 billion.

    “In 2019, government intends to build more industries and attract more Foreign Direct Investments, while ensuring the consolidation and sustenance in our already actualized and on-going socio-economic programmes in Health, Education, Roads, Electricity, Water Supply, Agriculture, Information Technology, Capacity Building, Infrastructure, Housing, Commerce and Industry Aviation, General Administration, Political Posterity and Security, Legislature and Judiciary.

    “A lot had been put in place in term of infrastructures already, but we need to do more. Our belief and conviction is that through industrialization, the fortunes of people would be greatly improved and employment opportunities will abound for our people thus, lifting the standard of living,” the Governor said during his presentation.

    The 2019 budget was christened the Budget of Industrialization for Poverty Alleviation and the 2018 Budget was named Budget of Consolidation on industrialization.

    “It was so named as the State had started witnessing a breakthrough in industrialization through the construction and commissioning of some industries that are currently in full operations. We also attracted more Foreign Direct Investments, boosted the fortunes of our people and improved employment opportunities,” Udom said.

    He said his administration is encapsulated by the five-point agenda of job creation, poverty alleviation, wealth creation, economic and political inclusion, and infrastructural consolidation and expansion to further transform the state into an industrialized entity.

    Akwa Ibom 2019 budget proposal

    He further stated that the 2019 Budget is prepared in accordance with International Public Sector Accounting Standard (IPSAS) – Accrual Template.

    “The Policy thrust of the 2019 Budget is aimed at reducing dependence on statutory allocation as the main source of revenue to the State. This will be pursued by establishing more industries, improving IGR and providing the enabling environment which will encourage private investments in the State.

    “The State Government will also create employment opportunities and improve the living standard of our people by providing basic infrastructures, enhancing security, develop human capital and continue to boost services in education and healthcare,” Udom said.

     

  • Gov. Ganduje proposes over N219bn for 2019 fiscal year

    Gov. Ganduje proposes over N219bn for 2019 fiscal year

    The Kano State Governor, Dr Abdullahi Ganduje, on Wednesday, presented a budget estimate of over N219 billion for the 2019 fiscal year before the state Assembly.

    Presenting the estimate, the governor said over N136.6 billion was proposed for capital expenditure while over N85.10 billion was for the recurrent expenditure.

    According to him, the budget proposal tagged “Budget for Sustainable Development’’ was designed to attain the agenda of his administration for developing the state.

    He added that part of the proposed estimate would be generated from the re-current revenue, internally generated revenue while part would be funded with the federal allocation.

    Ganduje said over N38.3 billion was proposed to carry out infrastructural development projects across the state for the benefit of the people of the state, especially the construction of flyover along Kofar Mata to Murtala Muhammad Way.

    The governor explained that part of the proposed fund for the infrastructure would be used to ensure the completion of the abandoned five kilometre roads across the 44 local government areas of the state.

    “We intend to spend over N26.4 billion for the execution of various projects in critical areas of water supply and rural development.

    “Also, Rural and Community Development we plan to expend N2 billion for various projects.

    “On agriculture, we proposed for N9.4 billion to complement the President Muhammadu Buhari’s agenda on the sector stressing there is plan to assist farmers and fishermen to boost the sector .

    According to Ganduje, over N18 billion was proposed for the execution of various capital projects under the sector, especially the construction of 100 classes for the Almajiri schools in the state which N150 million was proposed.

    He added that “N72 million was also proposed for the conduct of Qur’anic recitation completion in Kano while N17 billion for the development of the state-owned Yusuf Maitama-Sule University.

    “We also intend to spend N2.5 billion for the health sector, out of which we are going to recruits health workers and complete some important projects in the sector.

    “Also, over N1.6 billion was proposed for the Commerce, Mining and Industry Sector, while women and social development sector we intend to spend N861 million.’’

    He also disclosed that for the security and Justice Sector, over N2.8 billion was earmarked and that of the general administration, N7.8 billion was proposed while Environment to get N3.5 billion.

    The governor called on the youth to avoid being used as political thugs as the 2019 general elections is fast approaching.

    In his remark, the Speaker, Alhaji Kabiru Rurum, assured Ganduje of their readiness to ensure successful deliberations, smooth and speedy passage of the bill.

    He commended the state government for embarking on meaningful projects for the benefit of the general public.

     

  • FG proposes N8.6trn budget for 2019

    FG proposes N8.6trn budget for 2019

    …Targets N3.6tn oil revenue, $60/b benchmark, 2.3mbpd oil production
    …To provide for possible minimum wage increase
    Yielding to increasing domestic and global realities, the federal government is targeting a tighter fiscal plan, with a projected budget of N8.65 trillion in 2019.
    The move to cut the 2019 budget from N9.12 trillion in 2018 to N8.65 trillion, the government explained, is predicated on the need to ensure prudence, reduce deficit and borrowing while laying greater emphasis on revenue drive.
    The Minister of Budget and National Planning, Senator Udoma Udo Udoma, who gave these indications in Abuja Thursday at a public consultation on the 2019 – 2021 Medium Term Fiscal Framework (MTEF) and Fiscal Strategy Paper (FSP), said: “We want to reduce borrowing and deficit in terms of the budget size.”
    But he noted that in spite of a reduced budget in 2019, the administration was unwavering in providing for human capital development, education, health, and pension/gratuities.
    He specifically pointed out that there will be some provision for possible minimum wage increase, adding that the government was set to redress years of underfunding of pensions and gratuities.
    According to him, there is also a significant provision for national health, with one per cent of the Consolidated Revenue Fund (CRF) going to the Basic Health Care Fund as well as provision for counterpart funding for immunisation (GAVI).
    Udoma disclosed that the budget will be anchored on an oil production of 2.3 million barrels per day (mbpd), $60 per barrel benchmark as well as N305 per dollar exchange rate.
    The GDP growth rate for 2019 is also reviewed downward from the earlier projected 3.5 per cent in the Economic Recovery and Growth Plan (ERGP) to 3.01 per cent.
    Udoma stated that with a projected 2.3mbpd oil production, a N3.6 trillion oil revenue was being targeted while independent revenue of N624 billion was being expected, down from about N847 billion in 2018.
    He revealed that the 2019 budget would cut deficit by about N300 billion from N1.9 trillion in 2018 to N1.6 trillion.
    According to him, the 2018 revenues, up to August 2018, was N2.48 trillion, while the full year 2017 revenue was N2.6 trillion, adding that overall, 2018 revenues current run-rate is 30 per cent higher than last year’s (2017).
    This, he explained, is the reason behind cutting the size of the budget from N9.12 trillion in 2018 to N8.65 trillion in 2019.
    He said: “2018 revenues up to August 2018 was N2.48tn, while the full year 2017 revenue was N2.6tn. Overall, 2018 revenues current run-rate is 30 per cent higher than last year’s. This is the reason we have cut the size of the budget from N9.12 trillion to N8.65 trillion.”
    The minister explained that inflation is beginning to inch up, after 18 consecutive months of decline, standing at 11.23 per cent in August and 11.28 per cent in September as the base effect has begun to wear off.
    He expressed concern that the forthcoming 2019 general election may also create concerns for some economic actors, adding that this could have an impact on the rate of foreign portfolio investments.
    He however dismissed fears that the economy might relapse into another recession, considering the last quarter growth rate.
    Udoma argued that the economy is strong, although “we’re not yet where we are supposed to be”.
    He noted that it was not enough to think that the economy could slip into recession because it posted a growth of 1.5 per cent in the last quarter as against 1.95 per cent in the preceding quarter.
    He stated that macroeconomic stability has been largely achieved, noting that growth is expected to increase from 0.8% in 2017 to 2.1% in 2018 and 3.01% in 2019 with the continuing implementation of the ERGP as well as an improved outlook for oil prices.
    “Employment growth usually slows down during recession and takes some time to recover. Therefore, it is not surprising that the National Bureau of Statistics data shows that unemployment and underemployment remain high in Nigeria.
    “We expect more diversified and inclusive growth over the medium-term, and reduction in the rate of unemployment, as we continue to implement the policies and programmes of the ERGP,” he said.
    Providing further explanation on his recent pronouncement that the government was dropping the January to December budget cycle, Udoma stated that the decision was done with the election year in mind.
    He observed that the National Assembly and the executive would not be disposed to providing the needed synergy for such a cycle with electioneering in full swing.
    The cycle, he stated, would be pursued from the 2020 budget.

  • Okowa presents N367bn 2019 budget proposal to Delta Assembly

    Gov. Ifeanyi Okowa of Delta on Wednesday presented a budget estimate of N367.09 billion for the 2019 fiscal year to the State House of Assembly for approval.
    Presenting the budget christened, “Budget of Sustainable Growth,” Okowa said it was made up of N157.09 billion and N209.99 billion Recurrent and Capital Expenditures respectively.
    The proposed budget is N58.20 billion higher than the 2018 budget of N308.88.
    According to the governor, the 2019 recurrent expenditure is higher than that of 2018 by N9.823 billion
    “The proposed capital estimate for 2019 is N209 billion is N48.3 billion or 29.9 per cent higher than that of 2018 capital budget of N161.6 billion,” he stated.
    He said that in order to achieve the proposed target, government would intensify enforcement of appropriate tax legislation to increase the tax base to N73.4 billion annually.
    Okowa said that the budget would be funded through an expected statutory allocation of N217.89 billion, a Value Added Tax, (VAT) of N13.05 billion and other capital receipts of N62.73 billion.
    The governor highlighted other sources of funding for the proposed budget to include Internally Generated Revenue (IGR) of N73.4 billion, representing 20.77 per cent of the total projected revenue.
    A breakdown of the budget showed that N79.6 billion was allocated for roads, N2.9 billion for agriculture, N3.9 billion for sports development and N1.1 billion for jobs creation.
    Water resources got N1.6 billion with health and education getting N8.6 billion and N26.8 billion respectively.
    “We have christened it a budget of sustainable growth, because the year 2018 witnessed a significant improvement in our revenue receipt; it is our hope that this trend is sustained in 2019.
    “Our expenditure profile from January to June, 2018, showed that N66.5 billion was spent on recurrent items as against a proportionate approved budget of N73.7 billion, representing a budget performance of 94.4 per cent.
    “Also, N161.6 billion was budgeted for capital expenditure in the same period, with N38.6 billion spent as against N80.8 billion, representing a performance of 47.8 per cent,” he said.
    The governor said though capital expenditure performance was not a true reflection of performance, better performance was being expected in the third and the fourth quarters of 2018.
    “The first three budgets of this administration were largely centered on charting five main pathways critical to actualising our reform agenda of job and wealth creation.
    “The proposed 2019 budget will consolidate, expand and deepen the process as we pursue our transformation goal of building a strong diversified and inclusive economy,” he said.
    Receiving the budget proposal, the Speaker, Sheriff Oborevwori, lauded its timely presentation.
    Oborevwori assured the people of the state that the legislature would do justice to the proposal and give it accelerated passage.