Jonathan Submits 2013 Budget, Retains Fuel Subsidy

ABUJA, September 19, (THEWIL) - President Goodluck Jonathan on Wednesday forwarded to the Senate the medium-term expenditure framework and fiscal strategy paper for 2013 to 2015, with a resolve to allocate funds to the petroleum product subsidy in the 2013 budget, laying to rest slim expectations of a total withdrawal of subsidy.

Also, the 2013-2015 budget is predicated on the Oil Baseline Benchmark of $75 per barrel.

President Jonathan, in the letter submitting the MTEF to the Senate, wrote “pursuant to section 13, 12 and 11 of the Fiscal Responsibility Act, 2007,” adding that “the preparation towards submission of the 2013 budget to the National Assembly has since commenced with activities leading to the preparation of 2013-2015 Medium-Term Expenditure Framework and Fiscal Strategy Paper.”

Other highlights of the framework are the commitment to rationalising the large number of agencies based on the recommendations of the Orasanye committee, and also to focus on completing ongoing projects, particularly those with a high rate of return.

The general overview of the framework indicates that the Federal Government has pegged average oil production at 2.53mbpd for the 2013 fiscal year, 2.61mbpd and 2.65mbpd for 2014 and 2015.

However, the government said that in line with the oil price-based fiscal rule as stated in the Fiscal Responsibility Act, 2007, it chose a cautious oil benchmark of $75b for the 2013-2015 periods, which is below the current world market price and is underpinned by the model of 10 years and 5 years moving averages, with some adjustments.

It however, declared that revenue in excess of the benchmark price will continue to be set aside in the Excess Crude Account (ECA) and Sovereign Wealth Fund (SWF).

It added that the downside risks to economic growth have been taken into consideration in the preparation of the MTEF and FSP, and that the government priority sectors will continue to receive most of the capital allocations over the period.

In a separate development, the president also requested the Senate to confirm the ambassadorial nominations of Mr Shuaib Ahmed Adamu (Bauchi) and Mr N.V. Amaku, just as he sought the confirmation of Hon. Nnoli Nnaji as member of the governing board of Federal Road Maintenance Agency. Nnaji will replace Hon. Jerry Ugokwe, who declined the offer of the appointment.

Similarly, the appointment of Alhaji Ya'u Usman Jama'a (Kaduna) and Barr. Aliyu Datti (Niger) was presented to the Senate for confirmation as members of the National Population Commission (NPC), same as that of Alhaji Hassan Usman Sokodabo as member representing Niger State and the Federal Capital Territory in the Federal Civil Service Commission.