Senate approves N819.5bn supplementary budget as debt soars

The Senate on Wednesday approved the request of the president, Major General Muhammadu Buhari (retired) for a supplementary budget of N819.54 billion aimed at repairing infrastructure destroyed by floods across the country.

Buhari, through an executive communication last week, sought approval from the National Assembly for a supplementary budget of N819.54bn.

The request, according to the President, would form part of the Appropriation Law of 2022.

Buhari in the letter read by Senate President Ahmad Lawan said the supplemental appropriation request was earmarked for the capital expenditure component of the 2022 budget.

The Senate’s approval has increased the 2022 budget deficit to N8.17 trillion and the deficit-to-GDP ratio to 4.43%.

The new borrowing also increased the domestic indebtedness of the Federal Government in 2022 to N3.33 trillion.

In order to improve the implementation of the projects listed in the supplementary bill, the Senate extended the effective period of the budget N18.12trn 2022 until March 31, 2023.

The budget, in accordance with the provisions of clause 12 of the Appropriation Act and section 318 of the 1999 constitution, which stipulate 12 calendar months for the execution of the budget in any fiscal year, must end on December 31, 2022 , having started on January 1. , 2022.

But Buhari, in a letter read in plenary last week on Wednesday, sought amendment to the Act for an extension of the implementation period.

Buhari, in the letter read out by Senate President Ahmad Lawan, said: “I am writing to request your consideration for an amendment to speech clause 12 of the Acts of 2022, as passed and approved.

“The Appropriation Acts 2022 state that pursuant to the provisions of section 318 of the constitution of the Federal Republic of Nigeria, this bill expires after 12 months from 1 January to 31 December 2022 , once sanctioned.

“The proposed 2022 appropriation supplementary budget submitted to the National Assembly for consideration, as well as the recent 2022 releases of capital to MDAs, are likely to be used before December 31, 2022 due to the late release of the funds. funds that will lapse if the capital deployment does not take place. extended beyond December 2022.”