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.
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