BY EMMA UJAH

Details of the 2011 Appropriation Bill signed into law by President Goodluck Jonathan showed  N1.136 trillion deficit. The deficit is about 2.96 percent of GDP (compared to 4.23 percent of GDP in the Appropriation Bill passed in March), according to the Minister of Finance, Mr. Segun Aganga, in Abuja, yesterday.

“This brings us in line with the provisions of the Fiscal Responsibility Act of 2007, which pegs this at 3 percent of GDP”, he explained.

The original executive budget proposal of N4.2 trillion had a projected deficit of about N1.3 trillion before it was again jerked up by the National Assembly.

The Amended 2011 Budget is for an aggregate expenditure of N4.485 trillion which is N487 billion lower than the N4.972 trillion passed by the National Assembly in March.

The total forecast revenue is N3.348 trillion based on the benchmark oil price of $ 75/bbl, which is the same as in the original Appropriation Bill passed by the National Assembly in March.

Finance Minister, Olusegun Aganga

The minister said the increase in the benchmark was to ensure that the deficit was at a level that could be financed without excessive borrowing.

Capital Expenditure is now N1.147 trillion which is 22 percent higher than the actual amount of N936 billion spent in the extended (15-month) 2010 Budget.

Aganga said the amount was higher than any amount that has actually been spent on capital projects in the last 10 years.

The minister said the Federal Government in the new fiscal year would vigorously pursue the new approach to funding the development of critical infrastructure in Nigeria through the involvement of the private sector, which, according to him, “has the capital and implementation capacity to successfully deliver specific infrastructure services”.