Ups and Downs of 2006(5)
December 16th, 2006 Ogbuotobo Chuks || chuks@stockmarketnigeria.com
Ogbuotobo Chuks
BUDGET 2007
Like expected, the administration of Chief Olusegun Obasanjo, submitted the appropriation bill for 2007 to the senate in October, only that this time, it was drafted early enough. For those who do not know, this is the last budget that would be tendered by this present administration.
According to the president, the budget is tagged “The Budget of Consolidation”, and like previous budgets, he promised that if acted on and implemented according to book, it would cause a revamp in the lives of Nigerians. He further said that the budget is geared at reducing poverty, as well as meeting and achieving the Millennium Development Goals (MDG’s) of the United Nations.
KEY HIGHLIGHTS
1. Government targets in inflow of N4.3 trillion.
2. Government plans an expenditure of about N2.3 trillion
3. Oil revenue will account for N3.2 trillion, while non-oil revenue will generate about N1.1 trillion (only about 16% of the total budget)
4. Of the non-oil revenue that is expected to accrue to the federation account, companies’ income tax will account for N299 billion as against N230 billion in 2006, value added tax will account for N530 billion as against N225 billion in 2006, customs & excise duties will account for N230 billion as against N197 billion for 2006.
5. Security and defense got N213 billion, N191 billion is for ministry of works, N186 billion is for education, N122 billion is for health, N95 billion is for water, settlement of pension liabilities will get N80 billion, agriculture will get N38 billion while N27 billion will be considered for election matters.
N11 billion for dredging of the River Niger from Lokoja to Warri, N36 billion for construction of East- West road, N21 billion for the construction of Kano- Maiduguri road dualisation and N50 billion for the ongoing reforms of the public service.
From all indications, it’s apparent that Nigeria is too dependent on oil. This country is crowned with huge deposits of natural resources and they remain untapped. We hope that in 2007, the new administration would devise a strategy that would see this country shift focus to things other that oil.
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