Reps Pass N17.126 Trillion Budget For 2022

House of Reps in session

…Extend implementation of 2021 budget by 90 days

By Kemi Yesufu

The House of Representatives on Tuesday passed the 2022 budget at the sum of N17.127 trillion.

This is a significant increase from the sum of N16.391 trillion budget estimates presented by President Muhammadu Buhari.

The 2022 Appropriation bill was increased by N736 billion.

For the basic parameters of the budget, the House approved the 1.88mbpd as daily oil production; $62 oil benchmark price; N410/$ exchange rate; 4.2% GDP growth rate and 13% inflation rate for the 2022 fiscal year.

The House also approved increase in the oil price benchmark from $57 to $62. The Green Chamber equally increased the deficit by N98 billion to accommodate some other requests of national importance not provides for in the budget estimates and which could not be covered by the revenue increase.

Also during plenary, the House approved the extension of the implementation of the 2021 Appropriation Act by 90 days.

The resolution was passed following the adoption of a motion sponsored by the Majority leader, Hon. Alhassan Ado-Doguwa urged the House to extend the implementation of the 2021 Appropriation act by 90 days.

A look at the 2022 budget showed that Statutory Transfer was allocated N869.667 billion; Recurrent Expenditure will take N6.910 trillion; Capital expenditure is allocated N5.467 trillion and Debt Services remains high at N3.870 trillion.

Under the Statutory transfers, National Judicial Council is to get N120 billion; Niger Delta Development Commission – N102.783 billion; Universal Basic Education – N112.287 billion; National Assembly – N139 billion; Public Complaints Commission – N11.190 billion; Independent National Electoral Commission (INEC) – N219.544 billion; National Human Right Commission – N4.500 billion; North East Development Commission – N48.076 billion; Basic Heath Care Fund – N56.144 billion and National Agency for Science and Engineering (NASENI) – N56.144 billion, respectively.

A breakdown of the National Assembly budget showed that the sums of N19.116 billion is National Assembly Office; N33.267 billion – Senate; N51.995 billion for House of Representatives; N7.734 billion for National Assembly Service Commission; N9.602 billion for Legislative Aides; N118.970 million for Senate Public Account Committee; N142.764 million for House Committee on Public Account; N8.308 billion for General Services; N7.374 billion for National Institute for Legislative and Democratic Studies (NILDS); N471.335 million for Service Wide Vote; N581.848 million for Office of Retired Clerks and Permanent Secretaries; N125 million for Senate Committee on Appropriations and N165 million for House Committee on Appropriations.

This as a sum of N100 billion was also approved for Zonal Intervention Projects; N10 billion for National Assembly liabilities; N300 million for National Assembly e-Library; N139 million for National Assembly Dashboard; N1 billion for Constitution review and N20 billion for Special Intervention projects.

Under the Recurrent (Non-Debt) Expenditure, the House approved the sums of N350 billion for National Social Investment Programme (NSIP); N4 billion for Employee Compensation Fund; N30 billion Contigency (Recurrent); Treasury Single Account (TSA) – N1 billion; N50 billion for Police Operations Fund; N50 billion for Hazard Allowance for health workers; N50 billion for Enhanced Allowance for Nigeria Police; N300 billion for national Poverty Reduction with Growth Strategy (FG commitment, including NSIP upscaling); N40 billion for settlement of MDAs electricity bills debt; N65 billion for Presiential Amnesty Programme: Reintegration of transformed ex-Militants; N115 billion for military operations: Lafiya Dole and other operations of the Armed Forces; N1 billion for severance benefits to retired Heads of Government Agencies and parastatals; N2.300 billion for entitlements of former Presidents/Heads if States and Vice Presidents/Chief of General Staff; N125 billion for Pension Protection Fund; N10 billion for benefits of retired Heads of Service and Permanent Secretaries an Professors; N11 billion for arrears of pension liabilities; N30.064 billion for defunct privatized agencies pension; N125 billion for payment into redemption fund.

From the total of N10.741 trillion approved revenues, share of Federation revenues stands at N5.526 trillion; N2.216 trillion as Independent revenues; N195.716 billion as dividends; N62.377 billion as Aid and Grants; N300 billion as Special Funds/Accounts – Receipts; N1.728 trillion as Government-Owned Enterprises (net of Operating Surplus).

The House also approved the virement of N276.757 billion from the N13.588 trillion approved in the 2021 Appropriation Act as well as N983 billion approved in the Supplementary Appropriation Act, on July 26″, 2021.

Speaking earlier, Speaker Femi Gbajabiamila stated the commitment of the 9th National Assembly to improving the effective and efficient allocation and use of  the country’s resources.

He said: “A recurring challenge is how best to ensure that the ministries, departments and agencies of the Federal Government adhere strictly to the letter of the appropriation law. This is a subject of grave concern, especially now when we must contend with the reality of limited resources amid significant developmental challenges. Therefore, in the new year, the House of Representatives will explore further options for legislative action in this regard.

“During consideration of the 2022 Appropriation Bill, we were inundated with requests for funding from Ministries, departments and agencies of government, all of whom require additional funding to effectively discharge their mandates. We recognise the genuine urgency of many of these requests and we have tried within the reality of limited revenues to meet the most critical needs.

“However, one thing that is now abundantly clear, is that the legislature needs to act to reform the envelope system currently in place because it imposes conditions that do not make for optimal outcomes. At the same time, we must begin also to consider options for merging agencies where there is a significant overlap in functions and responsibilities, and scrapping other institutions where their utility is no longer apparent.”

The House also approved the N215.811 billion budget for Federal Inland Revenue Service (FIRS), out of which the sum of N119.068 billion is for personnel cost, N60.016 billion is for Overhead cost and N35.097 billion is for capital expenditure for year 2022.

In a related development, the House passed through Third Reading the Finance Bill which seeks to amend the Capital Gains Tax Act, Companies Income tax Act, Federal Inland Revenue Service (Establishment) Act, Personal Income Tax Act, Tertiary Education Trust Act (Establishment) Act, Value Added Tax Act, Insurance Act, Nigeria Police Trust Fund (Establishment) Act, National Agency for Science and Engineering Infrastructure Act, Finance Control and Management Act, Fiscal Responsibility Act and for other related matters.

After the end of the plenary, the House adjourned plenary till 18th January, 2022.

COVID-19 TIPS

Be the first to comment

Leave a Reply

Your email address will not be published.


*