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WEDNESDAY, OCTOBER 13 , 2004           Obasanjo proposes N1.6trn for 2005 Stories from KABIRU YUSUF, Abuja THE federal government is to spend the sum of N1.618 trillion during the 2005 fiscal year. President Olusegun Obasanjo revealed this while presenting the 2005 appropriation bill to the National Assembly in Abuja yesterday. Breakdown of the budget indicated that the sum of N531 billion is earmarked for capital expenditure, while N651 billion for recurrent. According to the president, the budget proposed a 24 per cent growth in expenditures in nominal terms over that of 2004, explaining that most of this growth was in the capital budget. 'The forecast is for a fiscal deficit of 2.9 per cent of GDP, compared to the 2 per cent of GDP in budget 2004,'' he further explained. Chief Obasanjo added that the deficit is to be financed largely by savings from the additional oil income of 2004. This, he enumerated, include some privatization proceeds, very little borrowing from the domestic capital market and other independent income from sales elsewhere in the federation. The budget the president stated focuses on building physical and social infrastructure, saying that while the priorities of last year would be carried forward, more of capital expenditure particularly from the excess crude proceeds had been added in the budget. This he said is to boost spending on agriculture, power, roads, water and national security including the police, military and other agencies. The budget, he added provides for additional social safety nets targeted mainly at the youth, women and children to cushion the impact of reforms. Chief Obasanjo also said emphasis would continue in paying arrears owed contractors and completion of on-going projects. Explaining the reason for the growing recurrent budget, which amounted to N651 billion or 40 per cent, the president gave several factors responsible to that. This he said include salaries and allowances of newly recruited police, monies for capacity building of the civil service as part of the public service reforms as well as anticipated redundancy payments.   SITE TOOLS Print This Page   EMAIL THIS PAGE Friend's Name: Friend's  Email: Your Name: Your Email:           � Triumph Publishing Company Limited 2004

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