Buhari signs 2016 budget

President Muhammadu Buhari yesterday signed the 2016 Appropriation Bill into law, noting that the Act provides for aggregate expenditures of N6.06trillion. He said details of the approved budget and the strategic implementation plan would be provided by the minister of budget and national planning. Also noteworthy, is Minister of Budget and National Planning, Udoma Udo Udoma, saying at a State House briefing shortly after the budget was signed, that full implementation may not be achieved because the federal government was starting late.

The president said through the 2016 budget, titled ‘Budget of Change,’ the government seeks to fulfill its own side of the social contract. He said the document was intended to signpost a renewal of his government’s commitment to restoring the budget as a serious article of faith with Nigerians.

Buhari said his administration was committed to ensuring that henceforth the appropriation bill was presented to the National Assembly in time for passage before the beginning of the fiscal year. He said in designing this year’s budget, a deliberate choice to pursue an expansionary fiscal policy despite the huge decline in government revenues from crude oil exports was made.

“This is why we decided to enlarge the budget deficit at this time, to be financed principally through foreign and domestic borrowings. All borrowings will however be applied towards growth-enhancing capital expenditures,” the president said. He said the signing of the budget would trigger concerted efforts to reflate the economy, “a key element of which is an immediate injection of N350billion into the economy by way of capital projects.”

Buhari said to illustrate the government’s renewed commitment to infrastructural development, the 2016 budget allocated over N200billion to road construction compared to N18billion last year. He added that despite the current difficulties, “we will work extra hard to achieve our revenue projections. Our revenue generating agencies are coming under better management and are being re-oriented. The implementation of the Treasury Single Account (TSA) is expected to contribute significantly to improving transparency over government revenues.”

The president thanked the leadership and members of the National Assembly for their cooperation and he noted that his administration’s determined fight against corruption was resulting in improvements in the quality of public expenditure. “The continuing efforts to reduce recurrent expenditures should hopefully free up more funds for capital expenditure in 2017 and beyond,” he stated, stressing that he has heard the cries of Nigerians and shares their pain.

Buhari also said Nigeria was experiencing probably the toughest economic times in its history. “I want to commend the sacrifice, resilience and toughness of all Nigerians, young and old, who have despite the hardships continued to have hope and confidence of a great future for Nigerians. But permit me to say that this government is also like none other. We are absolutely committed to changing the structure of the Nigerian economy once and for all.”

“I cannot promise you that this will be an easy journey, but in the interest of so much and so many we must tread this difficult path. But I can assure you this government you have freely elected will work with honesty and dedication day and night to ensure that our country prospers and that the prosperity benefits all Nigerians,” Buhari said.

Minister of Budget and National Planning, Udoma Udo Udoma, at the aforementioned State House briefing, also said the 2017 budget would be presented to the National Assembly in October for the document to be passed before the end of the year, adding that this was to ensure that the implementation of next year’s budget begins in January.

“There is going to be extensive consultation with the National Assembly and non-governmental organisations,” the minister added.

Senate president Bukola Saraki said the National Assembly is looking forward to the implementation of the budget. “The passing of the appropriation bill is the most difficult all over the world. Even America that we copy sometimes the government is shut down, we didn’t see that in our case, it is a first time, is a new government. So these sorts of challenges are rare. But I’m happy we are all here to see that we’ve passed the budget and what we await now is implementation,” Saraki said. 

The Senate President said: “I want to assure Nigerians that from the comment from the mouth of the president, our commitment is to see that the budget is  implemented, not just the assent. It is now the implementation, that is when Nigerians will begin to see the benefits”, he said.