Nigerian President Goodluck Jonathan signed a 4.697 trillion naira ($29.8 billion) budget into law for 2012, less than lawmakers proposed.
The spending plans are based on an oil price of $72 a barrel, Jonathan said in a speech today, $2 higher than he originally proposed in December. Lawmakers in the Senate and House of Representatives last month proposed expenditure of 4.9 trillion naira.
Jonathan, who won a four-year term in office last year, is under pressure to curb governance costs and wages to free up funds that can be used to build power plants and houses in Africa’s most populous nation.The budget excludes 180 billion naira already appropriated by the government from savings from a January cut in fuel subsidies to fund welfare projects.
“One of the main goals of this administration is to complete and exit the large stock of ongoing projects and programs,” said Jonathan. The “2012 budget is focused on completing viable ongoing projects, in accordance with the transformation agenda, which will quickly deliver tangible and significant added value to Nigerians.”
Recurrent expenditure, such as salaries, accounts for 3.357 trillion naira, a decline to 72 percent of government spending, from 74 percent in 2011, he said. Capital expenditure will amount to 29 percent of aggregate spending at 1.34 trillion naira, Jonathan said. The fiscal deficit will be 2.85 percent.
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