On Tuesday, President Muhammadu Buhari signed the 2022 Supplementary Budget along with the 2023 Appropriation Bill into law in Abuja.
Buhari said during the event that the budgets are designed to cater for the 2023 general elections, transition programme and other issues. The budgets, which marked his last as president, are worth N21.83 trillion and N819 billion respectively.
According to a statement issued by the Special Adviser to the President on Media and Publicity, Femi Adesina, the aggregate expenditures of N21.83 trillion, is an increase of N1.32 trillion over the initial Executive Proposal for a total expenditure of N20.51 trillion.
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The Senate had last week passed the 2022 Supplementary Budget. Buhari said it has become necessary as the country needs to respond to the havoc caused by the recent nationwide floods on infrastructure and agriculture sectors.
However, the president pointed out that the National Assembly has padded the Budget by almost N1 trillion.
”We have examined the changes made by the National Assembly to the 2023 Executive Budget proposal.
”The amended fiscal framework for 2023 as approved by the National Assembly shows additional revenues of N765.79 billion, and an unfunded deficit of N553.46 billion.
”It is clear that the National Assembly and the executive need to capture some of the proposed additional revenue sources in the fiscal framework. This must be rectified.
”I have also noted that the National Assembly introduced new projects into the 2023 budget proposal for which it has appropriated N770.72 billion. The National Assembly also increased the provisions made by Ministries, Departments and Agencies (MDAs) by N58.55 billion,” Buhari said.
He added that the Minister of Finance, Budget and National Planning will subsequently provide more details of the approved budget and the supporting 2022 Finance Act.
He directed the Minister of Finance, Budget and National Planning to engage with the Legislature to revisit some of the changes made to the Executive budget proposal, expressing the hope that the National Assembly will cooperate with the Executive arm of Government in this regard.
Buhari urged the National Assembly to reconsider its position on his proposal to securitize the Federal Government’s outstanding Ways and Means balance at the Central Bank of Nigeria (CBN).
“As I stated, the balance has accumulated over several years and represents funding provided by the CBN as lender of last resort to the government to enable it to meet obligations to lenders, as well as cover budgetary shortfalls in projected revenues and/or borrowings.
“I have no intention to fetter the right of the National Assembly to interrogate the composition of this balance, which can still be done even after granting the requested approval.
“Failure to grant the securitization approval will however cost the government about N1.8 trillion in additional interest in 2023 given the differential between the applicable interest rates which is currently MPR plus 3% and the negotiated interest rate of 9% and a 40year repayment period on the securitized debt of the Ways and Means,” he said.
The President directed the Ministry of Finance, Budget and National Planning to work towards early release of the 2023 capital votes to enable Ministries, Departments and Agencies commence the implementation of their capital projects in good time to support efforts to deliver key projects and public services as well as improve the living conditions of Nigerians.
Buhari highlighted key areas the budget was designed to take on. He said the 2023 Budget was developed to promote fiscal sustainability, macroeconomic stability and ensure smooth transition to the incoming Administration, adding that it was also designed to promote social inclusion and strengthen the resilience of the economy.
On other issues such as achieving revenue targets for the budget, the President asked MDAs and Government Owned Enterprises (GOEs) to intensify their revenue mobilization efforts, including ensuring that all taxable organizations and individuals pay their fair share of taxes.
The president also asked relevant Agencies to sustain current efforts towards the realization of crude oil production and export targets, as a means to achieve the objectives of the 2023 Budget.
“To augment available fiscal resources, MDAs are to accelerate the implementation of Public Private Partnership initiatives, especially those designed to fast-track the pace of our infrastructural development.
“This, being a deficit budget, the associated Borrowing Plan will be forwarded to the National Assembly shortly.
“I count on the cooperation of the National Assembly for a speedy consideration and approval of the Plan,” he said.
Concluding his presentation, Buhari expressed optimism that the next administration would sustain financial reforms initiated by his administration.
“I firmly believe the next Administration will also sustain the current public financial management reform efforts, further improve the budgeting process, and particularly maintain the tradition of supporting its Appropriation Bills with Finance Bills designed to facilitate their implementation.
“To sustain and institutionalize the gains of the reforms, we must expedite action and conclude work on the Organic Budget Law for it to become operational before the end of this Administration,” he said.