PDP Governments failed By: Isy C.A. Enwere Published July 6th, 2012 For every fiscal year, the Federal Government of Nigeria goes through the rituals of drafting the appropriation bill usually based on number of barrels of crude oil sold for that year. For example, Nigeria’s 2012 budget of N4.749 trillion is premised on an oil price benchmark of $70 a barrel for a total production of 2.45 million barrels a day and at an exchange rate of N155/$. The 2011 budget was predicated on oil production of 2.3 million barrels per day at a benchmark price of $65 per barrel and at an exchange rate of N150/$. The budget of 2010 which doubled previous appropriation bills in a grand style and continued till date was projected on production of 2.35 million barrels of oil a day, at a benchmark price of $67 a barrel for a total of N4.6 trillion which was eventually overstretched to N5.160 trillion. According to the Federal Inland Revenue Service (FIRS) revenue schedule, its contributions to the economy for seven years between 2004 and 2010 nearly equalled or surpassed the national budget. For instance, its tax revenue schedule shows that in 2004, FIRS made a total of Nl.19 trillion in revenue, whereas the Federal budget was Nl.18 trillion. In 2005, it contributed Nl.74 trillion while the budget was N1.61 trillion. Again, in 2006, FIRS made Nl.86 trillion against the Federal budget of Nl.188 trillion. Furthermore, in 2007 it made Nl.84 trillion as against the federal budget of N2.3 trillion recording a marginal difference. In 2008, the revenue of FIRS rose to N2.97 trillion whereas the federal budget was N2.45 trillion. In 2009, FIRS revenue was N2.19 trillion and the federal budget was slightly higher to N2.87 trillion, again recording another marginal difference. However, in 2010 the revenue collected by FIRS was N2.83 trillion whereas the federal budget rose to alarming N4.6 trillion and eventually ran into a deficit of N5.160 trillion.
Posted on: Fri, 05 Jul 2013 21:28:33 +0000
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