Osinbajo signs 2017 budget after Buhari’s nod

The acting President allayed concerns about the growing public debt, noting that government was taking several actions to grow government revenues as well as plug revenue leakages.

“This is because, notwithstanding the fact that our borrowings are still within sustainability limits, we are determined, in the medium term, to reduce our reliance on borrowings to finance our expenditures,” he added.

Osinbajo pointed out that the nation’s economy was already signaling a gradual recovery as growth was headed towards positive territory.

Backing up this claim, he said: “First quarter GDP, at -0.52% compares favourably with -2.06% in the first quarter of 2016. Inflation is declining – down to 17.24% from 18.74% as at May 2016. Our external reserves are now US$30.28 billion as at June 8, 2017 up from US$26.59 billion as at May 31, 2016.

“We are also gradually instilling confidence in our exchange rate regime. This improvement in GDP growth and other macro-economic indicators is largely attributable to our strategic implementation of the 2016 Budget as well as stronger macroeconomic management and policy coordination.

“I am confident that the 2017 Budget will deliver positive economic growth and prosperity – one that is self-sustaining and inclusive. In this regard, the 2017 budget will be implemented in line with our Economic Recovery and Growth Plan.”

Osinbajo observed that the statement Executive’s engagement with the legislature has yielded acceptable results leading to a commitment by the National Assembly leadership to re-instate budgetary allocations for important projects though virement.

According to him, “the most important being that the leadership of the National Assembly has given us a commitment that the National Assembly will re-instate the

budgetary allocations for all the important executive projects, such as the railway standard gauge projects, the Mambilla Power Project, the Second Niger Bridge, the Lagos – Ibadan Expressway etc. which they had reduced to fund some of the new projects they introduced.

“This re-instatement will be by way of an application for virement by the Executive which they have agreed will be expeditiously considered and approved by the National Assembly.

“It is as a result of that understanding and the outcome of our detailed engagements that we feel able to sign the 2017 Appropriations Bill into law today.”

On the new fiscal year, Osinbajo also assured that it would revert to January-December following a resolution of both the Executive and the Legislature to make it so.

He revealed that the 2018 budget would be transmitted to the National Assembly in October, noting that the lawmakers have assured that they would pass it by December 2017.

He added: “I am also pleased to mention that, in our discussions with the leadership of the National Assembly, we have jointly resolved to return to a predictable January to December fiscal year.

“It is a particularly important development because this accords with the financial year of most private sector companies, underscoring the crucial relationship between government and the private sector.

“Therefore, on the understanding that we will be submitting the 2018 Budget to the National Assembly by October 2017, the leadership of the National Assembly has committed to working towards the passage of the 2018 Budget into law before the end of 2017. I must, once more, express my appreciation to the leadership of the National Assembly, for the collaborative spirit in which these discussions were conducted.”

Energy sufficiency in power and petroleum products; Improved transportation infrastructure; and

Industrialization through support for micro, small and medium-scale enterprises (MSMEs).

He noted that in order to demonstrate government’s commitment to following through ERGP, the 2017 budget allocated over N2 trillion to capital expenditure, principally infrastructure.

He stated further: “For instance, we are committing over N200 billion to improve transport infrastructure such as roads and rail; over N500 billion for investments in works, power, and housing; and N46 billion for Special Economic Zone Projects to be set up in each geopolitical zone.

“The signing of the budget today will trigger activities in the domestic economy which will lead to job creation and more opportunities for employment, especially for our youth.

“And, as I indicated earlier, we will be returning to the National Assembly to seek upward adjustments by way of virements in relation to a number of critical projects which have received inadequate provision in the budget just passed by the National Assembly.”

On the war against corruption, Osinbajo said it was yielding positive results and money recovered was embedded in the signed budget for identifiable projects.

He said: “Our fight against corruption is yielding positive results. Some of the recoveries are included in the 2017 Budget which will be expended on identifiable capital projects.

“Already, we are beginning to see some improvement in the quality of public expenditure. This is great motivation for us to remain resolute in our fight against corruption so that economic prosperity is enjoyed by all Nigerians.”

Before the signing of the budget, the Presidency revealed that President Buhari had written to the Minister of Budget and National Planning, Udoma Udoma, expressing delight at the resolution for the timely submission of 2018 budget.