2013 Budget: Collectible revenue projected at N11trn – Okonjo-Iweala
The Coordinating Minister for the Economy, Dr Ngozi Okonjo-Iweala, said that the gross federally collectible revenue in 2013 budget was projected at N11.34 trillion.
Okonjo-Iweala made this known while giving a breakdown of the 2013 Budget, in Abuja. She said, “The gross federally collectible revenue is projected at N11.34 trillion, of which the total revenue available for the Federal Government’s Budget is forecast at N4.1 trillion.”
This, she said, represented an increase of 15 percent over the estimate for 2012. According to the minister, the projection is based on oil production of 2.53 million barrels per day compared to 2.48 million barrels per day in 2012. “Benchmark oil price of 79 dollars per barrel, up from 72 dollars per barrel in 2012, Projected real GDP growth rate of 6.5 percent and average exchange rate of N160 per dollar,” she said.
The minister said that the non-oil sector was expected to sustain the 2013 budget. She commended the Federal Inland Revenue Services for attaining 20 percent growth in non-oil tax revenue between 2007 and 2012. On the expenditure provision, she said that budget made provision for an aggregate expenditure of N4.987 trillion. This she said represented a modest increase of 6.2 per cent over the N4.697 trillion appropriated in 2012.
“This is made up of N387.97 billion for statutory transfers; N591.76 billion for debt service; N2.38 trillion for recurrent (non-debt) expenditure. Of which N1.717 trillion is the provision for personnel cost, while overhead cost is projected at N208.9 billion. And a total of N1.62 trillion has been provisioned for capital expenditure,” she said. The minister added that an additional N273.5 billion had been provisioned for the subsidy reinvestment (SURE-P) programme. Okonjo-Iweala said that with the development, the fiscal deficit was projected to improve to about 1.85 per cent of GDP in the 2013 Budget when compared with the 2.85 per cent in 2012.
She said that N497 billion was marked out for critical infrastructure such as power, works, transport, and aviation. The minister further ssaid that another N705 billion was set aside for human capital development under education, water, agriculture and health sector “We also allocated over N950 billion for national security purposes, comprised of N320 billion for the police, and N364 billion for the Armed Forces, N115 billion for the Office of the NSA, and N154 billion for the Ministry of the Interior. For 2013, the SURE-P programme has a projected allocation of N180 billion, augmented by the 2012 unspent balances of N93.5 billion.
“This amount will be used to make further progress in the provision of social safety net schemes, maternal and child healthcare, youth development and vocational training for Nigerians,” she said. Okonjo-Iweala said that budget had key priorities, which included the reduction in cost of governance, and debt management. Others are infrastructure investments, job creation and the development of the manufacturing sector.
She said that the recurrent spending in total expenditure had reduced from 74.4 per cent in 2011 to 67.5 per cent in 2013 while capital spending increased from 25.6 per cent in 2011 to 32.5 per cent in 2013. The minister said that N100 billion was saved for 2013 budget from the implementation of IPPIS. On debt management, she said that N75 billion of maturing debt obligation payment was made last week and N25 billion had been set aside in a sinking fund to be used for retirement of maturing debt obligations in the future.
The minister said that government had reduced annual domestic borrowing to finance the budget deficit from N852 billion in 2011, to N744 in 2012, and now to N577 billion in 2013. She said, “We are also making concerted efforts to defray the debts of our foreign missions. We have made a provision of N13 billion in the 2013 budget to help clear accumulated debts as at the cut-off date of June 2012.”