FEC Agrees 5% Increase In 2013 Budget At N4.929 trillion
Minister of Finance and Coordinating Minister of the economy, Ngozi Okonjo-Iweala said on Wednesday that the Federal Executive Council (FEC) has agreed to increase spending in the 2013 budget by five percent but will make a reduction in fiscal deficit.
The budget which she said will be sent to National Assembly in September will have a reduction in fiscal deficit and domestic borrowing by 2.17 percent and N727.19 billion next year respectively, from 2.85 percent and 744.44 billion this year.
Okonjo-Iweala told reporters at the presidential villa that the FEC agreed a total 2013 budget spending of N4.929 trillion ($30.80 billion), an increase from the N4.697 trillion budgeted for 2012.
“The focus of the federal government’s proposals is that the budget should make a practical impact on the areas that matter most to the Nigerian people which are: jobs, power supply, roads, rail other infrastructure and agriculture,” Okonjo-Iweala said.
She added that capital expenditure would rise to 31.34 percent in the 2013 budget, up from 28.5 percent this year as she looks to reduce the amount government spends on itself.
“The 2013 budget proposal is anchored on the key goal of achieving fiscal consolidation with growth and job creation.”
As usual, the 2013 budget is based on oil production, which makes up 80 percent of government revenue. The FEC is proposing an oil benchmark price of $75 a barrel, up from $72 in this year’s budget.