Relive Yesterday's Budget Presentation By The President

Buhari presents N6.08trn 2016 budget to NASS

Buhari arrived the Chambers at 10.01am. Apologizing to Nigerians for the pains occasioned by the continued fuel scarcity across the country, he said: “The  current fuel scarcity with long queues at petrol stations all over the country causing social
dislocation is very unfortunate. Government profoundly apologizes to Nigerians for this prolonged hardship and misery. It is as a result of market speculators and resistance to change by some stakeholders. Government is working very hard to end these shortages and bring fuel to the pumps all over the country.”
Meanwhile, the Senate, yesterday, amended the Appropriation Act of 2015 to extend implementation of 2015 budget from December 31, 2015 to March 31, 2016.
The President who started his address at 10.17am and ended it at 10.51 am, disclosed that 30 per cent of Nigeria’s annual budget will be committed to capital expenditure, even as he raised Capital Expenditure from N557 billion in 2015 to N1.8 trillion in the 2016 budget.
Having reviewed the trends in the global oil industry, he said the government decided to set a benchmark price of $38 per barrel and a production estimate of 2.2 million barrels per day for 2016, with plans to  focus on non-oil revenues by broadening the tax base and improving the effectiveness of revenue collecting agencies.  The government is projecting to realise N1.4 trillion as non-oil revenue.
President Buhari, who noted that the present administration projected a revenue target of N3.86 trillion for 2016 and recurrent expenditure of N2.43 trillion, said that the Federal Government also proposed to spend N1.66 trillion on foreign and domestic debt servicing.
The President also declared that his administration would fight corruption no matter how long it takes.
To borrow N1.9 trillion
In the budget, there is a projected foreign and domestic borrowing of N900 billion and N986 billion respectively.
On recurrent sectoral allocations, Education received the highest recurrent vote of N369 billion; followed by Health, N296 billion; Defence, N294 billion; Ministry of Interior, N245 billion while the merged ministries of Power, Works and Housing received budgetary allocation of N433 billion for 2016.
The speech read in part: “The Budget was based on a benchmark oil price of $53 per barrel, oil production of 2.28 million barrels per day and an exchange rate of N190 to the US$.
“The projected revenue was N3.45 trillion, with an outlay of N4.49 trillion, implying a deficit of N1.04 trillion. Due largely to under-provisioning by the previous administration for fuel subsidy and the costs required to support the military operations in the North East, the Government had to obtain National Assembly’s approval for a supplementary budget of N575.5 billion. I take this opportunity to thank all members of the National Assembly for the prompt passage of that Bill.
“To deliver our development objectives, we have increased the capital expenditure portion of the budget from N557 billion in the 2015 budget to N1.8 trillion, in the 2016 budget. Distinguished and honourable members of the National Assembly, for the first time in many years, capital expenditure will represent 30 per cent of our total budget. In future years, we intend to raise the percentage allocation for capital expenditure.
“This is a fulfillment of our promise to align expenditure to our long-term objectives, and a sign of government’s commitment to sustainable development. This increased capital expenditure commits significant resources to critical sectors such as Works, Power and Housing – N433.4 billion; Transport – N202 billion; Special Intervention Programs – N200 billion; Defence – N134.6 billion; and Interior – N145.3 billion. These investments in infrastructure and security are meant to support our reforms in the Agriculture, Solid Minerals and other core job creating sectors of our economy.
“We will invest to safeguard lives and property. We will invest in