N8.83trn Budget: Security, Education top allocation

President Muhammadu Buhari, on Wednesday proposed N8.83trillion for 2019 fiscal year to the joint session of the National Assembly.

The president, in the N8.83trillion budget estimates, which is about N300billion lesser than the N9.12trillion aggregate budget expenditure, earmarked N4.04trillion for recurrent expenditure which is about N500billionn higher than the N3.512trillion appropriated in the 2018 budget.

He explained that the increase in the recurrent expenditure component of the budget was done to take care of proposed implementation of the new minimum wage.

According to him, a bill that will stipulate the exact amount of new minimum wage to be approved by the National Assembly would soon be sent to NASS.

“I am accordingly setting up a High Powered Technical Committee to advise on ways of funding an increase in the minimum wage, and the attendant wage adjustments, without having to resort to additional borrowings.

“The work of this Technical Committee will be the basis of a Finance Bill which will be submitted to the National Assembly, alongside the Minimum Wage Bill.

“In addition, the Technical Committee will recommend modalities for the implementation of the new minimum wage in such a manner as to minimize its inflationary impact, as well as ensure that its introduction does not lead to job losses”, he said .

Other critical components of the budget are Capital expenditure N2.031trillion, Debt service N2.14trillion, statutory transfers of about N492.36billion and sinking fund of N120billion.

The entire budget profile and its critical components, the president added, are premised on parameters of oil price bench mark of $60 per barrel, 2.3 million barrel oil production per day and N305 exchange rate to a US dollar.

Others are, 3.01% GDP growth rate and 9.18% Inflation rate.

He added that the budget deficit is projected to decrease to N1.86 trillion (or 1.3 percent of GDP) from N1.95 trillion projected for the 2018 budget.

On sectoral allocations, the Ministry of Interior had the highest projected votes of N569.07billion, followed by Education which has N462.24 billion allocation.

Others are the Ministry of Defence which has N435.62billion, Ministry of Health N315.62billion etc.

According to him, “the allocation to these ministries represent significant increases over votes in previous budgets, underscoring our commitment to increase investment in National Security and Human Capital Development.

“The allocation to the Social Intervention Projects (SIP) has been retained at N500 billion, consisting of N350 billion recurrent and N150 billion capital. This reflects our continued determination to pursue inclusive gender-sensitive and pro-poor growth.

“In addition, to maintain the peace in the Niger Delta, the provision of N65 billion for the Presidential Amnesty Programme has been retained in the 2019 budget. Similarly, the sum of N45 billion Naira has been provided for the North-east Intervention Fund, as well as the sum of N10 billion Naira as take-off grant for the North-east Development Commission.

“To further support Small and Medium Scale Enterprises, which are the focus of our industrialisation drive, we have set aside the sum of N15 billion for the recapitalisation of the Bank of Agriculture and the Bank of Industry.

“In addition, the sum of N10 billion is provided as a grant to the Bank of Industry for the purpose of subsidising the interest rates charged on loans to Small and Medium Scale Enterprises. This is intended to make it possible for them to access single digit interest rate loans from the Bank of Industry”, he added.

Also in the budget estimates, while the sum of N45 billion is provided for the North-east Intervention Fund, N65billion is also earmarked for funding of the Amnesty Programme in the Niger Delta.

A take-off grant of N10bnillio is also earmarked for the North-east Development Commission (NEDC).
However, the rowdiness which signposted the presentation, prevented both Senate President Bukola Saraki and Speaker Yakubu Dogara, from reading their prepared speeches for opening and closing remarks respectively.

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