All is set for the passage of the budget, it was learnt at the weekend.

The Chairman of the Senate Committee on Appropriation, Otunba Iyiola Omisore, broke the news, saying both President Umaru Yar’Adua and the leadership of the National Assembly agreed on basic features of the budget.

President Yar'Adua

Omisore, who spoke exclusively with our correspondent, said there had been no rift between the President and the Assembly. He explained that the two arms of the government had been meeting in the last two weeks to discuss the goals of the budget and how to realise them. He said: "There is no rift with Yar’Adua on the budget. But we have been consulting and reviewing the contents of the budget and we have had to make some adjustments.

"We have spent those sessions to review past performance of the nation’s budget, consider the new plans of Yar’Adua’s administration and put appropriate budgetary measures in place to make the 2008 appropriation bill achievable."

Omisore highlighted a few areas on which the President and the Assembly leadership had agreed.
He said: "We have mutually agreed with the President on the $59 benchmark, drastic reduction of the budget deficit, good use of debt relief gains, affordable and achievable capital projects, and Quick-to-Win Constituency projects, among others.

"Based on consultations, we have reduced the budget deficit from N568 billion to about N100 billion, which is less than one per cent of the total budget. Even at that, we are seriously working at zero deficit budgets. The President was so impressed that he described the National Assembly as the best that could happen to the nation at this time.

"The IMF and the World Bank recommended 3% deficit but we have less than 1%. And we are going to make further adjustments to have zero deficit. "

Asked to give the harmonised appropriation estimate for 2008, Omisore said: "We have asked the Ministry of Finance, the Accountant- General of the Federation and the Debt Management Office to submit the revised revenue profile on or before Monday (today).

"When these government ministries and agencies forward the revised profile to this committee, we will have to verify the facts and figures." President Umaru Yar’Adua had announced a N2.45trillion estimate for this year, with $53 per barrel of crude oil as the benchmark for the budget. With a new benchmark of $59, the 2008 appropriation may be higher than the projected figure.

Omisore, who insisted on giving the final estimate based on facts and figures from the relevant agencies, said the debate on the budget might begin tomorrow. He said: "All the Senate committees have submitted their reports, but the House of Representatives is not ready. We hope to use between this weekend and Monday to reconcile and concur with the House of Representatives.
"All things being equal, we hope to start the debate on Tuesday. And if we are able to start the debate, it is visible to pass the budget within a week."

On constituency projects, he said the funds for the Quick –to-Win projects would be sourced from the vote for the Millennium Development Goals (MDGs) drive. Omisore said: "We have decided that there must be yearning for these projects by the people of the affected constituencies and senatorial districts. We want what is achievable."

Responding to a question, Omisore said the National Assembly is displeased with some international rating agencies using outdated indices. He said: "I had to invite representatives of JP Morgan to my office to tell them that they have been using outdated indices to rate our economy on the bad side.
"Do you know that in the last three years, the exchange rates both at the official and parallel markets have had a convergence of N117 to a dollar?

"Also, our GDP has risen to about 15 per cent, but these international groups still paint a different picture of our economy."

Source: The Nation