He said this when he formally laid the 2011 budget estimates before the joint session of the National Assembly, where he admitted that the 2010 budget performed below average.
He said, “While improving the quantum of our capital outlays is important, enhancing the quality and efficiency of public expenditure is more critical. We are in the process of engaging global project management firms to enhance capital project management and delivery.
“This will complement the construction sector transparency initiative governance structure, which is being introduced to enhance transparency and accountability in the execution of capital projects.”
Jonathan was also told by the Speaker of the House of Representatives, Mr. Dimeji Bankole, that before the budget estimates would be considered, the Central Bank of Nigeria and 30 other Federal Government revenue generating agencies must first attach their respective budget estimates to the national budget.
Jonathan also said that the N4.226tn budget was N933bn less than the aggregate of the budget for implementation in 2010, which amounted to N5.159,bn.
He said, “There is a deliberate reduction in budgeted expenditure from the N5.16tn approved in the 2010 amendment and supplementary budgets.
“Aggregate expenditure for 2011 is projected at N4.226tn, comprising N196.12bn for statutory transfers; N542.38bn for debt service; N2.481tn for recurrent (non-debt) expenditure and N1.005tn for capital expenditure.
“This represents 18.1 per cent contraction from the N5.159tn appropriated by the 2010 amendment and supplementary budgets.”
Jonathan said the budget was based on an oil projection of 2.3 million barrels per day and a benchmark price of $65 per barrel. The joint venture cash calls were put at $5.4bn, while the projected Gross Domestic Product growth rate was put at seven per cent.
The President further said, “Our expenditure plans indicate that the 2011 fiscal balance will be a projected deficit of 3.62 per cent of GDP. New spending obligations such as the recent public service wage increases have contributed to the size of the deficit.”
While admitting the failure of the 2010 budget, Jonathan said, “A total of N749.75bn had been cash-backed for capital expenditure as at the end of October through the first, second and third quarter capital releases.
“With the fourth quarter releases shortly to be implemented, a total of N900bn will have been released.
“This would compare favourably with any level of capital implementation ever achieved in a 12-month fiscal year. While capital performance varies across the MDAs, the average capital utilisation is just under 50 per cent as at the end of October.”
Meanwhile, the President of the Senate, Mr. David Mark, in his address at the budget presentation, said the legislature would lead the crusade for cuts in recurrent allocations to all government agencies.
Mark, who noted the disproportionate ratio of recurrent and overhead expenditure to capital expenditure, said that members of both chambers of the National Assembly were willing to raise the standard by rising above the formalities of annual budget passage.
He said, ”The National Assembly, in the discharge of its responsibilities, will, from the 2011 Appropriation Bill, re-evaluate these budget aggregates and other major macroeconomic variables across the board for all government MDAs and other arms of government to lower the personnel and overhead expenditures, and improve the level of appropriations for capital expenditures.”
Mark added that the National Assembly would lead the crusade by making the required sacrifice and review downwards the legislature‘s recurrent expenditure, while expecting others to make similar sacrifices.
Source:http://www.punchng.com/
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