President Goodluck Jonathan has cut down the 2012 budget by N101 billion, sending a revised budget proposal of N4.648 trillion to the National Assembly for approval.
Goodluck Jonathan had initially presented a budget proposal of N4.749tr to a joint session of the National Assembly for the 2012 fiscal year on the 13th of December last year.
In a letter sent yesterday to the leadership of both chambers of the National Assembly, Jonathan said it was necessary to review the 2012 budget and the 2012-2014 Medium Term Expenditure Framework owing to the effects of the partial removal of petroleum subsidy on government revenue and expenditure items.
The letter read:
“Recent domestic developments, key among which was the partial withdrawal of subsidy on petroleum products and the ripple effect on the government revenue and expenditure items, have necessitated the revision of the 2012-2014 Medium Term Expenditure Framework and the 2012 budget proposal which I presented to the National Assembly on the 13th of December 2011.
“In this respect, I hereby forward copies of the revised 2012 budget proposal. It is my hope that the distinguished Senate will kindly consider and approve these revised proposals expeditiously.”
The new proposals show that instead of the N4.749tr earlier proposed for the 2012 fiscal year, Jonathan is seeking the issuance of N4.648tr from the nation’s consolidated revenue account, making a difference of N101bn.
The capital expenditure component of the budget is now N1.284 trillion as against the N1.319tr earlier proposed.
The revised budget proposal includes N888 billion allocations to petroleum subsidy which was not part of the initial budget.