Buhari signs N21.83trn 2023 Budget, Supplementary Appropriation Act into law

*President Muhammadu Buhari explains the 2023 Budget is developed to promote fiscal sustainability, macroeconomic stability to ensure smooth transition to the incoming administration in Nigeria

Isola Moses | ConsumerConnect

President Muhammadu Buhari has signed the 2023 Budget of N21.83 trillion and the 2022 Supplementary Appropriation Act into law.

Signing the budget, Tuesday, January 3, 2023, at the State House, Abuja, FCT, President Buhari disclosed the Federal Legislature increased the country’s aggregate expenditures of N21.83 trillion by N1.32 trillion over the initial proposal of N20.51 trillion expenditures presented by the Executive.

On the 2022 supplementary Appropriation Bill, Buhari in his address on the occasion, said that the 2022 Supplementary Appropriation Act would enable the administration to respond to the havoc caused by the recent nationwide floods on infrastructure and agricultural sectors of the economy.

He also stated the Minister for Finance, Budget and National Planning would subsequently provide more details of the approved 2023 Budget and the supporting 2022 Finance Act.

The President said: “We have examined the changes made by the National Assembly to the 2023 Executive Budget proposal.

“The amended fiscal framework for 2023 as approved by the National Assembly shows additional revenues of N765.79 billion, and an unfunded deficit of N553.46 billion.”

Buhari stated: “It is clear that the National Assembly and the Executive need to capture some of the proposed additional revenue sources in the fiscal framework. This must be rectified.

NASS introduces fresh projects into 2023 Budget: Buhari

The President also said, “I have also noted that the National Assembly introduced new projects into the 2023 budget proposal for which it has appropriated N770.72 billion.

“The National Assembly also increased the provisions made by Ministries, Departments and Agencies (MDAs) by N58.55 billion.’’

According to Buhari, his decision to sign the 2023 Appropriation Act, as passed by the National Assembly, was to enable its implementation to start  without delay, in view of the imminent political transition process to another democratically elected government.

He, however, directed the Minister for Finance, Budget and National Planning to engage with the Legislature to revisit some of the changes effected in the initial Executive Budget proposal.

The President expressed the hope that the National Assembly would cooperate with the Executive arm of Government in this regard.

Buhari also urged the National Assembly to reconsider its position on his proposal to securitise the Federal Government’s outstanding Ways and Means balance at the Central Bank of Nigeria (CBN).

The President explained: “As I stated, the balance has accumulated over several years and represents funding provided by the CBN as the lender of last resort to the government.

“To enable it meet obligations to lenders, as well as cover budgetary shortfalls in projected revenues and or borrowings.”

Buhari further stated: “I have no intention to fetter the right of the National Assembly to interrogate the composition of this balance, which can still be done even after granting the requested approval.

“Failure to grant the securitisation approval will, however, cost the government about N1.8 trillion in additional interest in 2023, given the differential between the applicable interest rates, which is currently MPR (Monetary Policy Ratio) plus three percent and the negotiated interest rate of nine per cent and a 40-year repayment period on the securitised debt of the Ways and Means.’’

Reviewing 2022 Budget implementation

In ensuring more effective implementation of the 2022 Capital Budget, President Buhari applauded the National Assembly for approving his request for an extension of its validity date to March 31, 2023.

He as well directed the Ministry of Finance, Budget and National Planning to work towards early release of the 2023 capital votes to enable the government Ministries, Departments and Agencies (MDAs) to begin the implementation of their capital projects in the budget earnest.

This process is meant to support efforts at delivering key projects and public services as well as improving the living conditions of Nigerians.

Buhari also restated that the 2023 Budget was developed to promote fiscal sustainability, macroeconomic stability and ensure smooth transition to the incoming administration.

According to him, it was also designed to promote social inclusion and strengthen the resilience of the economy.

Meanwhile, the President noted that adequate provisions had been made in the Budget for the successful conduct of the forthcoming General Elections and the transition programme.

Strategies for attaining revenue targets

On achieving revenue targets for the budget, the President directed MDAs and Government Owned Enterprises (GOEs) to intensify their revenue mobilisation efforts, including ensuring that all taxable organisations and individuals pay taxes as and when due.

Relevant agencies, he stated, must sustain current efforts towards the realisation of crude oil production and export targets to achieve the laudable objectives of the 2023 Budget.

Buhari said: “To augment available fiscal resources, MDAs are to accelerate the implementation of Public Private Partnership initiatives, especially those designed to fast-track the pace of our infrastructural development.

“This, being a deficit budget, the associated Borrowing Plan will be forwarded to the National Assembly shortly.

“I count on the cooperation of the National Assembly for a speedy consideration and approval of the Plan.”

Of Finance Bill 2022

In connection with the Finance Bill 2022, Buhari however, expressed regret that its review as passed by the National Assembly had yet to be finalised.

He said: “This is because some of the changes made by the National Assembly need to be reviewed by the relevant agencies of government.

“I urge that this should be done speedily to enable me to assent it into law.”

Among other top government officials who witnessed the signing of the budget Tuesday, in Abuja, include Senate President Ahmad Lawan and Rt. Hon. Femi Gbajabiamila, Speaker of the House of Representatives.

Buhari commended the Senate President, the Speaker of the House of Representatives, and all the leaders and members of the National Assembly for the expeditious consideration and passage of this year’s Appropriation Bill.

The President also acknowledged the roles played by the Ministers for Finance, Budget and National Planning, the Budget Office of the Federation, and the Senior Special Assistants to the President (Senate and House of Representatives) respectively.

“As I mentioned during the presentation of the 2023 Appropriation Bill, early passage of the budget proposal is critical to ensure effective delivery of our legacy projects, a smooth transition programme and effective take-off of the incoming administration.

The President as well said: “I appreciate the firm commitment of the 9th National Assembly to the restoration of a predictable January to December fiscal year.

“I also appreciated the mutual understanding, collaboration and engagements between officials of the Executive and the Legislative arms of government.”

He noted: “These have made the quick consideration and passage of our Fiscal bills possible over the last four years.’’

He, therefore, expressed the belief that the next administration would sustain the early presentation of the annual appropriation bill to the National Assembly to ensure its passage before the beginning of the fiscal year.

Buhari stated: “I firmly believe the next administration will also sustain the current public financial management reform efforts, further improve the budgeting process, and particularly maintain the tradition of supporting its Appropriation Bills with Finance Bills designed to facilitate their implementation.

“To sustain and institutionalise the gains of the reforms, we must expedite action and conclude work on the Organic Budget Law for it to become operational before the end of this administration.’’

According to him, these are challenging times worldwide.

He said: “As this Administration draws to a close, we will accelerate the implementation of critical measures aimed at further improving the Nigerian business environment, enhancing the welfare of our people and ensuring sustainable economic growth over medium to long term.’’

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