THE direction of the national budget for 2013
became clear yesterday as the Federal Executive
Council (FEC) approved the 2013-2015 Medium
Term Expenditure Framework (MTEF) and Fiscal
Strategic paper for next year.
The Council approved a projected revenue of
N3.891 trillion and total expenditure of N4.929
trillion for the year.
FEC also endorsed the proposals that the 2013
budget be predicated on a benchmark price of
$75 and crude production of 2.53 million
barrels per day.
In addition, there will be a continuation of
downward trend in recurrent expenditure and
upward trend in capital expenditure. Towards
this, recurrent expenditure will decline from
71.47 per cent in 2012 to 68.66 per cent in
2013 while capital expenditure is expected to
rise from 28.53 per cent for 2012 to 31.34 per
cent next year.
Also, in managing the domestic debt, the fiscal
deficit and domestic borrowing will decline from
2.85 per cent and N744.44 billion in 2012 to
2.17 per cent and N727.19 billion in 2013.
Under the fiscal framework, the Federal
Government will create a sinking fund of N25
billion yearly from 2013 to accumulate money
for paying off bonds. Similarly, N75 billion would
be spent on the retirement of bond debt due for
payment in February 2013.
Coordinating Minister of the Economy and
Minister of Finance, Dr. Ngozi Okonjo-Iweala,
told journalists at the end of the Council meeting
that the approvals were “practical expression of
the government’s determination to deliver the
draft 2013 budget on schedule for the early
consideration of the National Assembly in
September.
The minister said the government would
intensify efforts at ensuring further
improvement in the implementation level of the
current budget, adding that the implementation
level as at June 20, 2012 following four months
of implementation starting from April was 41.3
per cent.
Okonjo-Iweala explained that “the focus of the
government in 2013 as reflected in the Medium
Term Expenditure Framework and the Fiscal
Strategy Paper is that the budget should make
practical impact on the areas that affect most
Nigerians, such as job creation, power supply,
roads, rails, other infrastructure and security
through increase in capital budget and prudent
management of the economy.
Broadly, the focus will be on improving
aggregate revenue receipts, optimising
expenditure and keeping the fiscal deficit at a
reasonable level.
“The proposals for the 2013 budget are based
on a rigorous review of the performance of the
global economy with regard to negative
economic developments around the world,
which have the potential to negatively impact
the country’s economy. Based on a foundation
of prudence, the proposals represent a robust
response to these developments anchored on a
strong macro-economic framework,“ she said.
The minister added that the 2013-2015 MTEF
and Fiscal Strategic paper for 2013 will be
forwarded to the National Assembly as part of
their continuing discussions on the preparations
for next year’s budget.
The Council also approved contract for the
transaction advisory services for Design, Build,
Finance and Operate (DBFO) for the 2nd Niger
Bridge linking Anambra and Delta States at the
Onitsha-Asaba river crossing. To be executed
under the Public-Private Partnership (PPP), it
was awarded to a British firm, Roughton
International Limited at a total cost of
NN325,638,828. It is to be completed in 16
months. The projects is expected to be flagged
off by the third quarter of next year.
The Council also approved a memo by the
Minister of Works, Mike Onolememen for the
award of contract for transaction advisory
services for the improvement of the Apakun-
Murtala Mohammed Airport road route F269 in
Lagos State at a total cost of N297,746,203.
The 2.8 kilometre road, which is in a deplorable
condition, is to be upgraded to a modern eight-
lane facility for traffic flow.
The Council also approved additional works on
the subsisting contract for the extension from
Dutse-Kwanar Huguma on the dualisation of the
Kano-Maiduguri Road Section II (Shuwarin-
Azare). The new contract, a distance of 24.4
kilometres of road, will connect the proposed
Dutse Airport located along the road to the
Kano-Maiduguri Highway.
It was awarded in favour of Setraco Nigeria
Limited and cost N8,352,277,657.48. This will
drive the total cost of the Kano-Maiduguri
dualisation project from N35,841,452,834.88
to N44,193,730,492.36. It has a completion
period of 40 months. These are in line with the
2007 Fiscal Responsibility Act which demands
that the Federal Ministry of Finance produces
this each fiscal year and thereafter engages key
segments of the public with a view to getting
their input to enrich the plan.
Meanwhile, the Economic and Financial Crime
Commission (EFCC) has extended its fight
against crime to budget implementation to all
the states of the Federation.
To achieve this, the commission has allocated
N4.5 million to some civil society organizations
(CSO) to monitor budget implementation in
Cross River State.
The money, which was given to the EFCC by the
United Nations Development Programme
(UNDP) would be released to a yet to be
mentioned CSOs to monitor activities of the
state government in project implementation.
The Head of Strategy and Reorientation Units of
the EFCC, Mr. Gabriel Aduda, who disclosed this
at aTown Hall meeting on governance
accountability programme in Calabar on
Tuesday, said the commission wanted to identify
anti-corruption revolution partner in each state
to monitor activities of states and local council
officials in budget implementation