Minister of Finance, Shamsuddeen Usman has said that capital allocation in the 2008 budget might be slashed by 25 per cent.
Usman told the Joint House of Representatives Committees on Appropriation and Finance that the capital budget in 2007 was unusually high and the level of performance below 38 per cent as at June.
The minister said that the realistic benchmark of $53.8 per barrel of crude oil would be used for planning the 2008 budget.
He added that for that reason there would not be a repetition of non- implementation of the budget to the letter.
He warned ministries and parastatal establishments in the habit of carrying forward their expenditure to the next year to stop forthwith as the new administration viewed the practice as illegal.
He urged the National Assembly to impose sanctions on some ministries and agencies, which were still spending 2005/2006 capital budgets.
He said, "all outstanding capital budgets should be returned to the ministry and will be captured in 2008 budget."
The minister disclosed that government planned to reduce budget deficits from 2008 to 2010 by stopping withdrawals from the excess crude account.
He promised to bring to the National Assembly, the 2008 Appropriation Bill on time for approval.
He added that government planned to keep inflation at single digit as well as adhere strictly with fiscal responsibility across states.
Reviewing the performance of 2007 budget, Usman said that it had been sliding from 90 per cent to 38 per cent since 2004 and appealed to the committees to help to change the trend.
Usman also submitted the proposed amendment to 2007 Appropriation as well as 2007 Supplementary Appropriation Bill for the consideration of the committees.
Earlier, Mr. Festus Adegoke, the Joint Chairman of Appropriation and Finance Committees, said that the briefing was necessary to guide the implementation of the supplementary budget and plan ahead for 2008 Appropriation.
Adegoke assured the minister that the newly constituted committees would work together with the ministry to ensure the quick passage of both the 2007 supplementary budget and 2008 Appropriation Bill.
The Guardian
Monday, September 10, 2007
