Thursday, 16 February 2012

FG provides N656bn for fuel subsidy in revised budget


Minister of Finance
The Federal Government on Wednesday revised the 2012 budget already sent to the National Assembly to make provisions for N656.3bn for fuel subsidy.
As a result, it reduced the budget of the ministries, department and agencies for travels and training by N100bn.
The sudden tinkering of the budget has therefore reduced the 2012 budget figure to N4.649trn from its original outlay of N4.749trn.
The removal of fuel subsidy in January sparked protests across the country as the price of petrol increased from N65 per litre to N141. But the government later reduced to N97 per litre.
The subsidy provision in the 2012 budget was confirmed by the Minister of Finance Dr. Ngozi Okonjo Iweala in Abuja.
It was learnt that the measure was meant to ensure a smaller and more effective budget.
Okonjo-Iweala, in a statement from the ministry, noted that the revised budget had already been transmitted to the National Assembly for necessary actions.
The revision, which led to a reduction of about N100bn, was taken from a host of areas in the budget including administrative, training, transport and other costs.

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