2019 Appropriation: Federal Government Proposes Reduction Of Budget Deficit, Borrowings

Udoma

By CLEMENT NWOJI, Abuja

The Federal Government has indicated that the 2019 Appropriation will target reductuon of budget deficit and borrowings, thus it has projected a total budget of N8.6 Trillion in the draft of 2019-2021 Medium Term Expenditure Framework and Fiscal Strategy Paper  (2019-2021 MTEF/FSP).

But the projected available fund for the 2019 Appropriation is N6.9 trillion giving a deficit of N1.7 trillion against the current year’s deficit of over N2 trillion.

Although, it maintained that Nigeria would continue to borrow as every other country borrows, adding that what is important is gradual reduction of the amount as the economy grows and generate additional revenues.

The Minister of Budget and National Planning, Sen. Udoma Udo Udoma, gave the indications while making presentation of the draft “2019-2021 Medium Term Expenditure Framework and Fiscal Strategy Paper  (2019-2021 MTEF/FSP)” at a public consultative forum to generate inputs for the final copy.

He expressed optimism on the future economic growth of the country at 3.01 Gross Domestic Product (GDP) growth rate in the year 2019.

Other basic assumptions contained in the 2019-2021 MTEF/FSP include Exchange rate of $205 per Dollar, 2.3 million per day oil production, oil price of $60 per barrel, N3.6 trillion share of oil revenue, among other assumptions.

Sen. Udoma said the government would give more priority to pensions payment with projected amount of N525 billion and health which is expected to take N51 billion.

He noted that the ratio of taxes collected is not up to eight percent and emphasized that the government will build up taxes to ensure that those who are not paying are made to pay.

He said the country need to increase its revenues because when it is increased, the government will be able to deliver quality infrastructure and services to the people.

The Director General of Budget,  Ben Akabueze, had earlier in his opening remarks noted that Nigeria economy  emerged from recession at the end of the second quarter of 2017 and had since then recorded five successive quarters of positive growth.

He said the nation’s emergence from recession was not accidental but attributed it to the outcome of strategic planning and policy implementations by the federal government.

According to the Director General of Budget, “Most of these actions and policies are necessarily work in progress”, adding that the presentation by the Minister of Budget and National planning, Sen. Udoma Udo Udoma, on the ” 2019-2021 Medium Term Expenditure Framework and Fiscal Strategy Paper  (2019-2021 MTEF/FSP)”  was meant to generate critical suggestions and recommendations from the stakeholders and public with the aim of including such useful suggestions and ideas into the MTEF/FSP to enrich the final copy.