Budget returns to NASS, failure looms

President Goodluck Jonathan has sent back the 2011 Appropriation Act to the National Assembly proposing a reduction of about N500 billion. In a budget amendment sent to the National Assembly, President Jonathan wants a downward budget review from N4.97 trillion passed by the Legislature to N4.40 trillion.

The amendment provides for reduction in Capital Expenditure from N1.562 trillion to N1.122 trillion, recurrent expenditure is to be reduced from N2.46 trillion to N2.40 trillion, Statutory Transfers is to be cut to N387.8 billion from N496.6 while Debt Services has been increased from N445 billion to N495 billion.

The President has also slashed the National Assembly’s budget by about 50 percent from N232.7 billion to N120 billion. The National Assembly had increased its budget by 100 percent on the budget proposal sent by the President.

In a letter to the Senate read by Senate President David Mark yesterday, President Jonathan said the budget amendment becomes necessary in view of present global economic realities.

Briefing newsmen shortly after the Senate session yesterday, Chairman of the Senate Committee on Information and Media Senator Ayogu Eze said the amendment to the budget is to reduce the huge deficit.

He said, “There is also a commitment on the side of Mr. President to implement whatever is in the budget that is passed 100 percent. Though I don’t have the details now, there is likely to be a budget of about N4.4 to N4.5 billion.”

The Senate also approved N236 billion as 2011 budget for the Federal Capital Territory (FCT).  The FCT budget provides for N195 billion expenditure in 2011 out of which N40.7 billion is for personnel cost, N38.2 billion for overhead costs while the balance of N116 billion is for Capital Projects.

The National Communications Commission (NCC) also got a budget of N58.9 billion for 2011 after Senate adopted the report of its Committee on Communication which considered the request.

Speaking after passing the NCC budget, Senate President David Mark berated the commission for ineffectiveness saying “there are too many problems in the communication sector at the moment. The operators are taking consumers for granted and the NCC is not taking up its task of regulation work. I think they should buckle up.”

Senate also approved N9.7 billion as 2011 budget for the Universal Service Provision Fund (USPF) with Mark also giving marching orders to the agency to sit up.