President Muhammadu Buhari has directed the Minister of Finance, Budget and National Planning to engage with the National Assembly to revisit some of the changes made to the 2023 budget proposal.
Buhari also urged the National Assembly to reconsider its position on his proposal to securitise the Federal Government’s outstanding Ways and Means balance at the Central Bank of Nigeria (CBN).
The President gave the directive while signing the 2023 budget of N21.83 trillion along with the 2022 Supplementary Appropriation Bill into law at the Presidential Villa in Abuja on Tuesday.
According to a statement issued by his spokesman, Femi Adesina, President Buhari said the aggregate expenditures of N21.83 trillion is an increase of N1.32 trillion over the initial Executive Proposal for a total expenditure of N20.51 trillion.
He stated that the 2022 Supplementary Appropriation Act would enable the administration to respond to the havoc caused by the recent nationwide floods on infrastructure and agriculture sectors.
The President said his decision to sign the 2023 Appropriation Bill into law was to enable its implementation commence without delay, considering the imminent transition process to another democratically elected government.
Buhari noted that the Minister of Finance, Budget and National Planning will subsequently provide more details of the approved budget and the supporting 2022 Finance Act.
President Buhari said: “We have examined the changes made by the National Assembly to the 2023 Executive Budget proposal.
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“The amended fiscal framework for 2023 as approved by the National Assembly shows additional revenues of N765.79 billion, and an unfunded deficit of N553.46 billion.
“It is clear that the National Assembly and the executive need to capture some of the proposed additional revenue sources in the fiscal framework. This must be rectified.
“I have also noted that the National Assembly introduced new projects into the 2023 budget proposal for which it has appropriated N770.72 billion. The National Assembly also increased the provisions made by Ministries, Departments and Agencies (MDAs) by N58.55 billion.”
He added: “As I stated, the balance has accumulated over several years and represents funding provided by the CBN as lender of last resort to the government to enable it to meet obligations to lenders, as well as cover budgetary shortfalls in projected revenues and/or borrowings.
“I have no intention to fetter the right of the National Assembly to interrogate the composition of this balance, which can still be done even after granting the requested approval.
“Failure to grant the securitisation approval will however cost the government about N1.8 trillion in additional interest in 2023 given the differential between the applicable interest rates which is currently MPR plus 3% and the negotiated interest rate of 9% and a 40year repayment period on the securitised debt of the Ways and Means.”
To ensure more effective implementation of the 2022 capital budget, President Buhari thanked the National Assembly for approving his request for an extension of its validity date to March 31, 2023.
The President further directed the Ministry of Finance, Budget and National Planning to work towards the early release of the 2023 capital votes to enable Ministries, Departments and Agencies to commence the implementation of their capital projects in good time to support efforts to deliver key projects and public services as well as improve the living conditions of Nigerians.
Reiterating that the 2023 budget was developed to promote fiscal sustainability, macroeconomic stability, and ensure smooth transition to the incoming administration, President Buhari said it was also designed to promote social inclusion and strengthen the resilience of the economy.
He pledged that adequate provisions have been made in the budget for the successful conduct of the 2023 general election and the transition programme.
On achieving revenue targets for the budget, the President directed MDAs and Government Owned Enterprises (GOEs) to intensify their revenue mobilisation efforts, including ensuring that all taxable organisations and individuals pay taxes due.
He stated that relevant agencies must sustain current efforts towards the realisation of crude oil production and export targets to achieve the laudable objectives of the 2023 budget.
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“To augment available fiscal resources, MDAs are to accelerate the implementation of Public Private Partnership initiatives, especially those designed to fast-track the pace of our infrastructural development.
“This, being a deficit budget, the associated Borrowing Plan will be forwarded to the National Assembly shortly.
“I count on the cooperation of the National Assembly for a speedy consideration and approval of the Plan,” Buhari added.
Speaking on the 2022 Finance Bill, President Buhari expressed regret that its review as passed by the National Assembly was yet to be finalised.
“This is because some of the changes made by the National Assembly need to be reviewed by the relevant agencies of government. I urge that this should be done speedily to enable me to assent into law,” he said.
The President, however, thanked the National Assembly members for the expeditious consideration and passage of the 2023 Appropriation Bill.
Those who witnessed the signing of the budget include Senate President, Ahmad Lawan, and the Speaker of the House of Representatives, Femi Gbajabiamila.
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