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2014 Budget: Stop Misinforming Nigerians, Okonjo-Iweala Tells Senators

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jonathan_budget_2014The Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, has described the recent attacks on her person by some senators during the debate on 2014 Budget as unfortunate and needless.

In her reaction on Thursday, Mrs. Okonjo-Iweala refuted several allegations made against her by some of the senators, saying they were unfounded.

Some of the senators had accused her of implementing policies prescribed by the Bretton Woods Institutions, increasing the nation’s debt portfolio as well as failing in her promise to reduce the cost of recurrent expenditure, which they noted has continued to rise rather than abate.

In a statement issued by her spokesperson, Paul C Nwabuikwu, the minister thanked the “majority of the senators” who, she said, understood the issues at stake, adding that the accusations made against her were not based on fact.

The statement said: “Though government is continuous and the Minister has no desire to shirk her responsibilities, the effort to personalize these issues on the basis of inaccurate information is unfortunate and must be roundly refuted.  The first point made by some Senators is that she is responsible for the rising recurrent expenditure, which, according to them, rose ‘from 69 percent in the 2013 budget to 76 percent in the 2014’. This is inaccurate.

“The fact is that during 2010, the government awarded salary increases of 53 percent across the board to the public service, which increased the wage bill from N856.9 billion in 2009 to N1.36 trillion in 2010. At the time, finances were inadequate to back this award, and the government had to increase domestic borrowing significantly to cover the shortfall.

“This rise in government domestic borrowing, from N524 billion in 2009 to N1.36 trillion in 2010, is clearly shown in Figure 2, and is also the singular cause of the country’s rising domestic debt profile, from 14.83% of our Gross Domestic Product (GDP) in 2009 to 17.98% of GDP in 2010. The rise in salaries is also reflected by the sharp increase in the recurrent expenditure to 74.4% in 2011”.

The statement noted that Mrs. Okonjo-Iweala was not in government when these events took place, adding, however, that President Goodluck Jonathan has focused on reversing this trend.

It added: “Since 2011, various measures have been introduced, leading to a steady decline in recurrent expenditure from 74.4% in 2011, to 71.47% in 2012, and then to 67.5% in 2013”.

However, the statement said it was important to note that under the proposed 2014 budget, recurrent expenditure will rise to 74%, for two reasons, firstly: “Total expenditure of N4.64 trillion in the proposed 2014 is about a 7% decline from the 2013 budget level of N4.98 trillion. From a mathematical standpoint, this reduction in the budget base will result in a slight increase in the weight of the recurrent expenditure in the budget, which in absolute terms, has increased from 2013 levels”.

And, secondly, it noted: “The country is yet to fully absorb pension’s implications of the 2010 wage increases. Starting in 2013 budget, this Administration commenced tackling the payment of outstanding military pensions, and Budget 2014 will further address civilian pensions. We have been under pressure from many quarters, including Senators, to integrate the civilian component of pension, and doing so will further increase the recurrent budget. Will the Senators blame Okonjo-Iweala for this?”

On the allegation of excessive borrowing, the statement said it was noteworthy to mention that the flow of domestic borrowing has actually reduced, from N852 billion in 2011 to N588 billion in 2013 and down further to N572 billion as proposed in the 2014 budget. It added that for the first time in the history of our domestic debt, the Finance Minister ensured the repayment of N75 billion of our domestic bonds.

It said: “While it is important for us to debate the budget, it is also behoves us not to misinform Nigerians, demonise individuals based on false information and mischaracterize the nature of budget development in the country. A large number of lies are being told against the budget by those who do not care about the impact of their falsehood on the economy and the image of the country.

“While acknowledging that the budget has some imperfections which we are working hard to fix, the large number of positives in terms of policies and resources must not be forgotten”.

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1 Comment

1 Comment

  1. Nollywood

    February 8, 2014 at 6:37 am

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Politics

Fayemi Presents Over N109 billion As Budget Estimate For 2021

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Fayemi Orders Resumption Of All Workers In Ekiti
Fayemi Presents Over N109 billion As Budget Estimate For 2021

Governor Fayemi

Governor of Ekiti State, Kayode Fayemi has presented the proposed budget for the 2021 fiscal year in the State.

The Governor on Monday presented a budget estimate of over N109 billion for the 2021 fiscal year.

Governor Fayemi, while presenting the budget at the State House of Assembly complex yesterday in Ado-Ekiti described the 2021 budget as “Budget of Recovery and Economic Restoration.”

Also Read: #EndSARS Protests Politically Motivated – Kogi Governor

The budget has a recurrent expenditure of N57, 997,898,982.62k while the capital expenditure has N51, 668,386,739.99k.

Fayemi, said the budget proposal presented contains the policy thrust, programmes, and vision of his administration for 2021, saying efforts shall be made to source the needed resources to fund the budget.

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National Broadcast: PDP Slams Buhari Over ‘Disappointing, Empty’ Speech – PDP

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National Broadcast: PDP Slams Buhari Over 'Disappointing, Empty' Speech – PDP
National Broadcast: PDP Slams Buhari Over 'Disappointing, Empty' Speech – PDP

Muhammadu Buhari

The Peoples Democratic Party (PDP) has blasted President Muhammadu Buhari over his nationwide broadcast over the ongoing #EndSARS protest rocking the country.

Recall that Buhari in his speech called for an end to the protest, adding that his government had already accepted and started implementing demands of the protesters.

He, however, failed to acknowledge the shooting of protesters by soldiers of the Nigerian Army at the Lekki Toll Gate on Tuesday night.

Also Read: President Muhammadu Buhari’s speech – Full text

Reacting in a statement on Thursday night by its spokesperson, Kola Ologbodinyan, the PDP said Buhari’s address was depressing and failed empathy test.

The party appealed to Nigerians, particularly the youth, to remain calm and allow a return to normal life in the collective quest for peaceful co-existence in the overall interest of the nation.

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PDP Asks Buhari To Stop Killing Of #EndSARS Protesters Across Nigeria

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PDP Asks Buhari To Stop Killing Of #EndSARS Protesters Across Nigeria

PDP

The Peoples Democratic Party (PDP) has condemned the killing of peaceful #EndSARS protesters at the Lekki Toll Gate, Lagos.

This was contained in a statement titled “EndSARS- Lekki Massacre,” signed by the PDP National Publicity Secretary, Kola Ologbondiyan, late on Tuesday.

Ologbodiyan said, “The Peoples Democratic Party, condemns in very strong terms, the killing of peaceful protesters at the Lekki Toll Gate in Lagos as well as other parts of our country.

Also Read: Shehu Sani Condemns Shooting Of #EndSARS Protesters At Lekki Toll Gate

“It is shocking that security agents and, in some cases, thugs, were reportedly deployed to end the lives of promising Nigerians. This, to say the least, is saddening.

“Those responsible for the heinous murder of the innocent and harmless Nigerians must account for their nefarious acts.

“The PDP calls on President Muhammadu Buhari to immediately direct an end to these wanton killings across our nation.

 

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