The process of reviewing the 2020 budget continues as the House of Representatives on Thursday adjusted the statutory transfer component of the budget.
The agencies whose revenue are pegged on a percentage to the Consolidated Revenue Fund saw an increment in their allocation due to increase of the Oil benchmark from $25 per barrel as proposed to the $28 per barrel as approved by the House.
The Chairman of the House Committee on Finance, James Faleke moved the motion on behalf of the Chairman Committee on Appropriations, Muktar Betara.
According to Faleke, the extra $3 from the benchmark translates to ₦5,256,207,430 to be allocated to the statutory agency but was erroneously omitted during the passage of the budget.
Statutory transfer to Niger Delta Development Commission (NDDC) (15% NDDC States share from the Federation Account) was increased by ₦1,746,411,240.
Also, that statutory transfer to the North East Development Commission (10% of North–East States of FAAC) was increased by ₦816,871,125.
While Universal Basic Education (2% of CRF) and Basic Health Care Fund (1% of CRF) got increments of ₦1,795,283,376 and ₦897,641,688 respectively.
It means that the total Statutory Transfer has been increased from ₦422,775,979,362 to a new figure of ₦428,032,186,792.
With this new adjustments, the total budget size of ₦10,805,544,664,642, is thus increased by the above statutory share of revenue by the listed Agencies with a total of ₦5,256,207,430 bringing the new budget size to ₦10,810,800,872,072.
”The House notes the constitutional requirements of a share of Incremental Revenue by Statutory Agencies from the $3/Barrel Oil Benchmark price increase”.
”Also notes the approved increase in the Crude Oil Benchmark price from $25 to $28 per barrel; Observes that the application of the percentage of the $3 per barrel as a share of Revenue amounting to ₦5,256,207,430 to some Statutory Agencies was erroneously omitted in the recently passed budget”
”While Universal Basic Education (2% of CRF) and Basic Health Care Fund (1% of CRF) got increments of ₦1,795,283,376 and ₦897,641,688 respectively. It means that the total Statutory Transfer is has been increased from ₦422,775,979,362 to a new figure of ₦428,032,186,792.”
”According to Faleke’s motion, “the total budget size of ₦10,805,544,664,642, is thus increased by the above statutory share of revenue by the listed Agencies with a total of ₦5,256,207,430 bringing the new budget size to ₦10,810,800,872,072.”
