President, Muhammadu Buhari, will present an adjusted 2022 Appropriation Bill before the National Assembly on Thursday.
Buhari will present the Budget to a joint session of the National Assembly on Thursday.
He is seeking to increase Budget from N13.98 trillion to N16.45 trillion, via a letter to the Senate President, Ahmad Lawan. The letter was read out by the Deputy Senate President, Ovie Omo-Agege, at the start of plenary on Tuesday.
In the letter, the Buhari sought the Senate’s approval to make some changes in the recently passed Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) – parameters on which the 2022 budget will be framed.
The changes, he said, are in line with the newly enacted Petroleum Industry Act (PIA).
The federal government’s total expenditure for the coming year is projected to increase by N2.47 trillion, from N13.98 trillion to N16.45 trillion.
This includes Government-Owned Enterprises (GOEs) and Project-tied Loans.
Buhari, stated that of the additional N2.47 trillion, N100 billion will be allocated to the electoral umpire, INEC, as additional provision to cater for 2023 general elections.
Another N54 billion is going to the National Agency for Science and Engineering Infrastructure (NASENI) which represents one per cent of the federal government’s share of the federation account.
Also there will be additional provision of N510 billion in the Service Wide Votes to cater for national poverty reduction with growth strategy (N300 billion) and Police Operations Fund (N50 billion).
In the adjustment health workers will get N50 billion for Hazard Allowance, N80 billion allocated for public service wage adjustments and additional N37 billion for Ministries, Departments and Agencies, MDAs’ Electricity Bills Debt.
The president also said there will be allocation for an additional Capital provision of N1.70 trillion attributed to projected increases in, Capital Supplementation by N179.1 billion, GOEs Capital by N222.1 billion, TETFUND Expenditure by N290.7 billion, Multi-lateral / Bi-lateral Project-tied Loans by N517.5 billion and MDAs Capital Expenditure by N390.5 billion (including N178.1 billion provision for population and housing census to be carried out in 2022).
The aggregate deficit (inclusive of GOEs and Project-tied Loans) is projected to increase by N692.0 billion or to 3.42 per cent of GDP from 3.05 per cent of GDP.
On the Federation Account Revenue, the gross revenue projection decreased by N341,57 billion, from N8.870 trillion to N8.528 trillion.
Also, deductions for federally-funded upstream project costs and 13 per cent derivation decreased by N335.3 billion and N810.25 million respectively.
Net Oil and Gas revenue projection declined by N5.42 billion – from N6.540 trillion to N6.535 trillion.
He said that the fiscal effects of PIA implementation are assumed to kick in by mid-year 2022.
“The revised 2022-24 fiscal framework is premised on a hybrid of January-June (based on current fiscal regime) and July-December (based on PIA fiscal regime), while 2023 and 2024 are now fully based on the PIA.”
The budget proposal is over 166 per cent higher than that of 2016.
The Director-General, Budget office of the Federation, Ben Akabueze, had said that the 2022 budget which is a N13.98trn budget will be submitted to the legislators last September.
Recall that Buhari had presented a revised 2022-2024 Medium Term Expenditure (MTEF) and Fiscal Strategy Paper (FSP) to the upper house for approval.
Omo-Agege while presiding over the plenary urged the Senate Committee on Finance to speed up the consideration of the report on the MTEF and FSP for consideration on the floor of the Senate.