2015: INEC projects 40% expenditure increase

The Independent National Electoral Commission has
projected a 40 per cent increase in its expenditure
for the 2014 budget.

In the proposed budget presented by the Minister of
Finance, Dr. Ngozi Okonjo-Iweala, INEC’s
expenditure was projected to increase by 40 per
cent to N45bn from N32bn in 2013.’
It was gathered that the increased funding was
necessitated by intensified preparations in the run-
up to the 2015 elections.
The budget, which is themed ‘Budget for job
creation and inclusive growth,’ estimated aggregate
expenditure at N4.64tn, a decrease of 5.69 per cent
from the budget expenditure of N4.92tn in 2013.
Projected total revenue is N3.73tn, 4.11 per cent
less than the 2013’s revenue estimates of N3.89tn.
According to Iweala, the decline in aggregate
expenditure is attributed to losses in cleared oil
revenue particularly due to oil theft.
However, the percentage of aggregate expenditure
to be spent on capital expenditure decreased from
31.34 per cent in 2013 to 27 per cent in the 2014
budget, while recurrent expenditure increased from
68.66 per cent in 2013 to 73 per cent.
Analysts said this was contrary to the fiscal
strategy adopted over the past two years, geared
towards correcting the lopsided imbalance between
recurrent and capital spending.
The strategy, according to them, has succeeded in
lowering recurrent spending from 74.4 per cent in
2011 to 68 per cent in 2013 while raising capital
from 25.6 per cent to 32 per cent within the same
time span.
Notwithstanding the decrease in aggregate
expenditure, the fiscal deficit is projected to
increase, although marginally to 1.9 per cent from
1.85 per cent in 2013.
In addition, the budget projects a 0.86 per cent
reduction in domestic borrowing to N572bn from
N577bn in 2013, implying an increase in external
borrowing. The budget makes a provision of
N712bn for debt service, compared to the 2013
level of N591.8bn.