The 2014 Federal Budget is heavily focused on job creation, infrastructure development and inclusive growth. The Budget presented to the National Assembly today by the Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, on behalf of President Goodluck Jonathan, projects Gross Federally Collectible Revenue of N10.88 trillion out f which oil and gas is to provide N7.16 trillion.

The budget puts new borrowing requirement at N571 billion, a decrease from N577 billion in 2013. It foresees fiscal deficit of N911.96 billion, exchange rate stability of N160/$ and real GDP growth rate of 6.75%. Below are the highlights:

FOCUS:

•Job creation

•Infrastructure development

•Cost of Governance

Baseline Assumptions:

•Benchmark Oil Price: $77.5pb

•Budgeted Oil Production: 2.3883mbpd

•Average Exchange Rate: N160/$, same as in 2013

•Real GDP Growth Rate: 6.75%

Revenue Projections:

•Gross Federally Collectible Revenue: N10.88 trillion

•Gross Federally Collectible Oil and Gas Revenue: N7.16 trillion

•Total deductions, including cost of crude oil production, subsidy payments, and domestic gas development is N2.15 trillion, same as in 2013.

•Subsidy payments were maintained at the 2013 level of N971.1 billion.

•Gross Federally Collectible Non-Oil Revenue: N3.29 trillion

•FGN Budget Revenue: N3.73 trillion

Expenditure Projections:

•Aggregate Expenditure (Net of SURE-P): N4.642 trillion

•Aggregate Expenditure (Inclusive of SURE-P): N4.910 trillion

•Statutory Transfers: N399.7 billion

•INEC’s expenditure is to increase from the N32 billion provisioned in 2013 to N45 billion. •This is to enable the Commission intensify preparations towards the 2014 elections.

•National Assembly’s allocation is to be maintained at the 2013 level of N150 billion.

•The provision for debt service is N712 billion from the 2013 level of N591.8 billion.

•Recurrent (non-debt) Spending: N2.43 trillion down from N2.80 trillion in 2013

•Personnel cost increased slightly from the 2013 amendment Budget provision of N1.718 trillion to N1.723 trillion for 2014.

•Capital Expenditure: N1.100 trillion

•Share of Capital in total Expenditure: 27.29% down from 31.9% in 2013 reflecting the increased allocation to pension as well as high wage bill

•Share of Recurrent in total Spending: 72.71%

•Provision for SURE-P: N268.37 billion

Fiscal Balance:

•Fiscal Deficit: N911.96 billion

•Fiscal Deficit as share of GDP: 1.90

•New Borrowing Requirement: N571 billion, a decrease from N577 billion in 2013

•Photo shows Minister of Finance, Dr. Ngozi Okonjo-Iweala, who presented the budget on behalf of President Goodluck Jonathan.

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