Outgoing
President Goodluck Jonath an has approved the N4.5 trillion ($22.6
billion) budget for 2015, which was passed by the National Assembly in late
April, the president’s spokesman, Dr Reuben Abati, said yesterday.
The budget is 3.2 per cent smaller than last year’s as
the country is facing a cash crunch following the halving of global crude
prices in the past year. The budget was passed later than usual in part due to
the presidential election on March 28.
“I can confirm to you that Mr. President had signed
the 2015 budget into law some days back without the usual fanfare,” Abati said.
There could be supplements to the budget after
incoming president, Muhammadu Buhari, takes office next week. He has yet to
outline his economic policy although he is expected to crack down on excessive
spending by government officials, including the use of official cars.
The finance ministry was forced to revise down the
assumed oil price in the budget several times before submitting it at $65 a
barrel in December. Lawmakers ultimately passed the budget at an even lower
level of $53 a barrel.
The fuel subsidy, a heavy burden on the nation’s
purse, was also subsequently slashed by 90 per cent because of low income. The
government relies on oil sales for up to 80 percent of revenues and an
expensive election campaign helped drain its already limited rainy day fund.
The finance ministry said earlier this month that it
had already been forced to use up half of its budgeted borrowing allowance to
pay overheads and salaries and has not released any funds for capital
expenditure so far this year.
No comments:
Post a Comment
Contact Us
Email: publisher@absolutehearts.com
Phone/whatsapp: +2348027922363