Presidency slashes own budget by N3bn

By Ezrel Tabiowo
Abuja

Permanent Secretary of the State House, Jalal Arabi, yesterday announced a N3billion cut in the 2017 budget of the Presidential Villa, as against N16billion appropriated last year.
Arabi, who made the disclosure when he appeared before the Senate Committee on Federal Character and Inter-Governmental Affairs, said this was done in line with the current economic realities.
According to him, the budget cut in 2016 from N16,563,395,984 to N13, 567,979,279 in 2017 represents 18.08 percent reduction in comparison with the sum appropriated last year.

Arabi, while defending the 2017 State House budget proposal before lawmakers, told the committee that despite its decision to cut down on the this year annual total budget, an increase was however made, particularly to routine maintenance of villa facilities, electricity charges and overhead expenditures.
He explained that some factors such as exchange rate and inflationary trends were responsible for the increase for the items contained in this year’s proposal.
“Chairman, may I kindly recall that during our 2016 budget defence before this distinguished committee, I noted that the figure of N3.9 billion provided for maintenance of villa facilities was based on actual commitment in 2015. Sadly, due to the prevailing circumstances, the dynamics changed even while presenting the 2016 proposals.

“In 2017, we have considered some of these factors, including exchange rate and inflationary trends, and humbly proposed a modest provision of N4.9 billion for same services and beyond,” he explained.
Giving reasons behind increase in funding for electricity payment, the PS explained that the sum of N45.3 million which was approved in 2016 budget, was increased to N319.6 million in 2017 to cover current and outstanding bills which the insufficient sum appropriated in 2016 budget failed to cover.

“A sum of N45.3 million only was approved in the 2016 budget for this purpose. Suffice it to inform that the State House electricity bill for 2016 alone as forwarded by Abuja Electricity Distribution Company (AEDC) for the State House Abuja was N252 million with another outstanding liabilities of over N300 million for state house, Lagos facilities.
“Clearly, the provision in the 2016 budget could not accommodate this. Mr. Chairman, it may interest this distinguished committee to note that in 2016 it took the management of the State House the installation of meters to ensure proper billing to a reasonable figure. “However, since these bills are reconciliations, we have made a modest provision for the sum of N319.6 million for 2017 to settle current and outstanding bill as noted above,” Arabi said.

He further said “a total sum of N94.5 million is proposed for the purchase of treated (bullet-proof) tyres for 2017 representing 50 percent of the actual sought for in 2016.
He added that a total sum of N5.08 billion is being proposed for overhead expenditure in 2017 as against the 2016 appropriation of N3.85 billion.
Arabi further disclosed the amount proposed for capital was reduced from N11,140,852,010 in 2016 to N6,733,487,569 in 2017, while recurrent was increased from N5,422,543,974 in 2016 to N6,834,491,710 this year.

Commenting, two members of the committee, Senators Duro Faseyi and Joshua Lidani, expressed displeasure at the level of releases by the Ministry of Finance to the State House, pegged at N5.196 billion representing 46.64 percent.
Senator Lidani on his part, said capital releases to the State House was not encouraging, saying, “you seem to be concerned about public criticism. However, we need to ensure that funds are released so that the State House is equipped to be able to do what it is supposed to do.

“Mr. Permanent Secretary, you need to do more to ensure adequate provision for the state house clinic, because it is not only for you that the state house clinic is supposed to serve but also those from outside.
“Overall, I think you have performed but you have under-performed. Next time, I think you should do what is right and not listen to what the public says.”

Also in his remark, Chairman of the committee, Senator Tijjani Kaura (APC Zamfara North), said, “most of the agencies have received 70 percent releases, and I wonder why your case is different.”
He continued: “I noticed that while some agencies have their budgets increased, I see that yours have gone down by 18 percent. I’m beginning to think that might be as a result of your modesty or the change agenda.
“Also, I think we need to access funds for the medical center, since I think we do not have to subject it to unnecessary hardship”.