Jonathan calls off Budget Presentation to NASS

President Goodluck Jonathan has called off his planned presentation of the 2014 Budget to the National Assembly today. This is sequel to his earlier letter to the National Assembly expressing his concern over the crude oil benchmark pegged at $79 per barrel by the House of Representatives, stating that without a resolution of the benchmark it will be pointless presenting a budget to avoid unnecessary delays in its passage.

A close source in the Presidency confirmed that the President shelved the presentation of the 2014 budget today until a consensus is reached between both arms of government on the oil benchmark.

According to the source the president's decision to defer the budget’s presentation was triggered by the decision by the House of Representatives to renege on an understanding reached between the executive and National Assembly to peg the crude oil benchmark at $76.5 per barrel.

Under the 2014 - 2016 Medium Term Economic Framework (MTEF) and Fiscal Strategy Paper (FSP), the executive had proposed $74 per barrel. However, following an understanding reached between both arms of government, a joint Senate and House Committee of Finance and Appropriation, raised the benchmark to $76.5 per barrel two weeks ago. But whereas the Senate kept to its end of the bargain when it passed the MTEF/FSP last week, the House hiked the benchmark to $79 per barrel, causing consternation among the executive.

At this point, no new date has been fixed for the second time postponed presentation; a development which many financial analysts have expressed worry that the delay in its presentation will also affect the time of its passage and its consequences for the economy if its passage creeps into the New Year.

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