Looking at this comparative analysis
table of 2011 and
2012 of our budget, presented by our dear president Goodluck Jonathan at different intervals geared towards the achievement of
transformation agenda in Nigeria.
As we can observe from the table, 2012
budget of N4.749 trillion
is a bit higher than 2011
budget of N4.226 trillion.
Taking cognizance of the figure in
table we will clearly observe the
slightly differences in 2011
and 2012 budget from its
proposals N4.226 and N4,749
respectively. The budget of 2012 increase by N523 from that of
2012 both having security and defense having
the
upper hand in the table though
higher in 2011 than 2012
through know it is because of
election. The educational sector,
health more especially the agricultural
sector was drastically reduced to the dearestet msinimum in 2012
not minding that agriculture
employed 75% of
the workforce which
in solves the problem unemployment
and provide raw materials for industrials which gears
toward economic growth and
development. The debt service being on
the increase in the table showing that we continue to acquire debt to provide essential
ammonites to citizenry instead
of prudence management of our resources
Both
2011 and 2012
budget was under utilized as our
economy increasing in a decreasing rate as it fails to achieve its objectives as proposed by the president
in his speeches towards achievement of transformation
agenda . I can remember, vividly, when Mr. President presented 2012. He said
this budget is a stepping stone to the transformation of our
economy and country , in our walk to economic freedom “. Which economic freedom have we achieved as the
country is still dependent on
foreign aids even
in the importation of foods items
could you just imagine the
economy recorded impressive growth
of 7.85
per cent in 2010
and later reduced to 7.72% in the second quarter of 2011
|
|
2011
|
2012
|
|
|
N6n
|
N6n
|
|
Budget proposal
|
4.226
|
4.749
|
|
|
|
|
|
Capital
|
1006
|
1320
|
|
Recurrent
|
2.482
|
2,470
|
|
|
3,488
|
3790
|
|
Statutory
transfer d
|
196
|
398
|
|
Debt
servicing
|
542
|
561
|
|
Total
|
4226
|
4749
|
|
|
|
|
|
High
lighted sectors
|
|
|
|
Security
|
1042
|
922
|
|
Education
|
489
|
400
|
|
Health
|
339
|
283
|
|
Agric
|
139
|
79
|
|
Niger
delta
|
57
|
60
|
|
|
2066
|
1744
|
|
Debt
servicing
|
542
|
561
|
|
Statutory
transfer
|
196
|
398
|
|
Other
sectors
|
1422
|
2046
|
|
Total
|
4226
|
4749
|
IMPLICATION OF
2012 BUDGET EDUCATIONAL SECTOR AS A CASE STUDY
With
president Goodluck Jonathan yet
to assent to the 2012
budget, concerned educational stakeholders have called for the upward revision of the
budget to meet voted for education fails
to adequately address the funding of the vital sector.
According to a breakdown of the 2012 budget, the sum of
N400 is billion representing
8.43 percent of the budget
has been allocated to education .
out of this, N345.09bn 82% was allotted to recurrent expenditure while a mager
N55.05bn (18%) is for capital
expenditure . N317.896bn was proposed for personnel cost and N27.192bn
was for overheads. Also the main
ministry had a budget proposal for
MDGs N2.173bn, parastals
5.1962bn colleges of education
4.555bn and unity colleges
7.663bn universities
14.411bn. The ministry got a total capital of allocation of N5.49bn in
2011 out of which 3.688bn
was released, total commitments
was N3.49bn and actual draw down was
N2.699bn.
Chairman of the committee senator Uche
Chukwumerije said the distribution of funds between recurrent and capital poses challenges of slow
pale, in
infrastructural development in
the agencies and institution.
A
further breakdown showed that
while personnel allocation increased by
N38.584bn and capital 3.231bn respectively, which Uche Chukwumerije says
are not
remarkable enough to offer
great changes from
last years achievements.
Nigeria’s educational system is
bedeviled by a myriad of
problems, which keeps worsening by
the day all as a result of poor funding . These include poor funding shortage
of quality staff dearth
of infrastructure, inadequate
classroom and offices,
In
adequate classroom laboratories for teaching and research: shortage of
books and journals, corruption at high and low
places , cultism, irregular
payments of salaries, examination malpractices, embezzlement of
funds poor record keeping etc
and so in other sisters
sectors of the economy
thereby leading to stunted growth
and development and killing
the vision 20:20:
agenda and proposal in Nigeria.
THE ECONOMIC
IMPLICATION
This budget betrays government
commitment to fiscal prudence.
Allocation 73% of the
budget amounting to 2.472 trillion to recurrent expenditure in
2012 budget seems to me very
outrageous, and a more away from government mantra of fiscal prudence. Though,
as one analyst observes that if is not easy to cut recurrent expenditure in one
full swoop, this government should have done better than this. The implication of this his
that trillion of naira is being cut as fuel subsidy, they same mount is being move to finance
government expenses such
as transport and statutory allocation for president, vice president legislative and ministerial
expenses etc. There is little in the way
of prudence in a budget that will borrow about 22.3% of the total
budget to finance i.e. current
expenses, I do not have problem with government borrowings, bal the budget
should have been budget of infrastructural consolidation. About N1.059
trillion of the total budget
amount of N4.749 trillion is to come from China, Japan , India and France
as well as domestic borrowings
this is about quarter of the overall
budget.
In
a global
period chartered by an
unrwaled global debt crisis it seems unwise to borrow money to finance expenses like salary allowances, and
over bloated ministerial budgets. At a
time major countries around the world are drastically cutting down their
budgeting expenses, we are
increasing ours
The monetary implication of increased
government borrowing for the
economy is to increases the rate of
interest charged by lenders and when
interest rates are on the high side, the economic growth which is one of
the objectives of the macro –economic will sopsides and also to reduce the amount of Credit that will be available to the private sectors
in the year 2012 .
Despite government conservative for last
of 9.5% there still a slight increase in inflation. This is more so coupled with the removal of fuel
subsidy, from the economy and the
resultant devaluation of naira
consistent with this government economic agenda.
The any why one look at it government should have
intensity diversification of its revenue
source not only by the current revert to
borrowing which is an injection and invariably a leakage in terms of debt servicing in the economy. The expected
increase in the recurrent expenditure
will further increase our import bills, by putting pressure on the demand for imported goods and
services with little in the way of infrastructural
development increase interest and inflation rates,
increase in the cost of energy
not much should be in the area of industrial growth and welfare.
Despite the huge amount budgeted to
tackle insecurity in the country.
The security system in the country are nothing to write home about
as it ranges from kidnap, threat from militant groups, ethno-religious crisis etc, I
wonder where and what the budgetary allocation to security in Nigeria is been implemented as the
scourge is still skyrocketing and
posing a lot of challenges to any
development programme in Nigeria.