President Goodluck Jonathan has written to the Senate requesting for approval of N161. 617 billion supplementary budget to pay for subsidy shortfall as well as to pay for subsidy for the remaining part of the year.
According to Jonathan, in a letter he wrote to the President of the Senate, David Mark which was read at the plenary session on Tuesday, there was a shortfall of about N7.73 billion from the provision made for subsidy in 2012 budget.
A provision of N888.1 Billion was made for payment of fuel subsidy in 2012 budget.
In his letter titled: Request for Supplementary Budget for 2012, the President explained that following the forensic audit carried out, the provision of fuel subsidy was underestimated.
The letter reads in part: “The Distinguished Senate President will recall that as parts of the 2012 budget framework, a provision of N888.1 billion was made for payment of fuel subsidy for the nation. I wish to intimate the Distinguished Senate of the fact, following the forensic audit carried out, the provision for fuel subsidy in the 2012 was underestimated.
As at now, the sum of N880,264,243,683. 61 has been paid leaving a balance of N7,735,316.39. In order to accommodate the outstanding arrears resulting from the forensic audit exercise and the remaining period of the year 2012, an additional sum of N161,617,364911 over and above what was programmed in the 2012 framework is required.”
The President urged the senate to give the supplementary budget an expeditious passage because of the need to maintain a steady flow of petroleum products especially in the run-up to the festive season.