…As N819.5billion supplementary budget will be financed by additional Domestic Borrowings
By Henry Umoru
THE Senate has approved the request of President Muhammadu Buhari to raise a total sum of N819.536,937,815 billion supplementary budget for the 2022 fiscal year to address various infrastructure that were destroyed by flood across the various states of the country.
The Supplementary Bill, will be financed through additional domestic borrowings, which will raise the 2022 budget to N8.17 Trillion only, and Deficit/GDP to 4.43%.
The breakdown of the approved N819.536,937,815 billion shows that the Federal Ministry of Agriculture and Rural Development is allocated N69,247, 175,770; Federal Ministry of Works and Housing got N704,789,043; Federal Capital Territory, FCT, N30,000,000,000 and Federal Ministry of Water Resources is N15,500,000,000.
The approval yesterday was sequel to the presentation and consideration of a report of the Senate Joint Committee on the 2022 Supplementary Appropriations Bill, 2022( SB.1091) by the Chairman, Senator Jibrin Barau, APC, Kano North.
The bill seeks to among other things, make available additional funds to cushion the effects of the 2022 flood on road infrastructure, Agriculture, Water infrastructure and completion of some ongoing critical projects that have achieved about 85% completion.
Barau said, “The Appropriations Committee having considered the detailed provisions of the Bill, the contributions of its Sub-Committees and the general impact it will make in ameliorating the havoc caused by flood across the country and recommended the following for the various MDAs
“1 Federal Ministry of Agriculture and Rural Development; ii. Federal Ministry of Works and Housing; iii. Federal Capital Territory; iv. Federal Ministry of Water Resources
“The Committee hereby recommends that the Senate do consider and approve: A Bill for an Act to authorize the issue from the Consolidated Revenue Fund (CFR) the total sum of N819, 536,937,813 (Eight Hundred and Nineteen Billion, Five Hundred and Thirty-Six Million, Nine Hundred and Thirty-Seven Thousand, Eight Hundred and Thirteen Naira, only.
“I Federal Ministry of Agriculture and Rural Development – N69,247,175,770; ii. Federal Ministry of Works and Housing-N704,789,762,043; iii. Federal Capital Territory – N30,000,000,000; iv. Federal Ministry of Water Resources – N15,500,000,000.”
In the report, Senator Barau said, “The Committee observed as follows: The effects of the 2022 flood across the country and its attendant consequences on our roads, bridges, farmlands and the water sector necessitated the Supplementary Appropriation Bill request.
“MDAs involved in the Supplementary Appropriation Bill requests are: Federal Ministry of Agriculture and Rural Development; Federal Ministry of Works and Housing; Federal Ministry of water Resources.”
Recall that Muhammadu Buhari had last week Wednesday written the National Assembly, seeking for the approval of a total sum of N819.5billion supplementary budget for the 2022 fiscal year to address various infrastructure that were destroyed by flood across the various states of the country.
The letter of President Buhari’s supplementary budget proposal was read separately by the President of the Senate, Senator Ahmad Lawan and the Speaker, House of Representatives, Femi Gbajabiamila, just as it was explained that the money is meant for the capital expenditure component of the 2022 budget with attendant increase of deficit to N8.17trillion.
With the urgency of the matter, the President of the Senate hurriedly forwarded it to the Senate Committees on Appropriations , Finance, Works , Water Resources and Agriculture for expeditious consideration.
The proposal is designed for a year that has ten days to go, even as Lawan said that the Governor of Central Bank of Nigeria, CBN, Godwin Emefiele, Ministers of Finance, Budget and National Planning; Water Resources and agriculture must today appear before the Senate Committees to enable them get details about the Supplementary Budget.
President Buhari added that the proposed N819.5billion supplementary budget will be financed by additional domestic borrowings.
The letter read: “The year 2022 has witnessed the worse flood incident in recent history which has caused massive destruction of farm lands at a point already closed to harvest season.
“This may compound the situation of food security and nutrition in the country . The flood has also devastated road infrastructure in across the 36 states and the FCT as well as bridges nationwide that are critical for movement of goods and services.
“The water sector was equally affected by the flood and there is a need to complete some ongoing critical projects that have already achieved about 85 percentage completion.
“The nine critical projects proposed in the sector cuts across water supply , dam projects and irrigation projects nationwide.
“I have approved a supplementary budget of 2022 appropriation of N819.536 Billion , all of which are capital expenditure.
“The supplementary will be financed through additional domestic borrowings which will raise the budget deficit for 2022 to N8.17 .trillion and deficit to GDP ratio to 4.43%.”