Nov 30,2023.Thank you for reading this post, don't forget to subscribe!
President Bola Tinubu on Wednesday presented the N27.5 trillion budget estimates for the 2024 fiscal year to a joint session of the National Assembly for consideration and approval.
The fiscal document was tagged “Budget of Renewed Hope’’.
The estimate is N2.7 trillion higher than the 2023 budget of N24.82 trillion.
The budget proposal is predicated on N750 per dollar exchange rate; an oil benchmark of $77.96 barrel per day; an oil production volume of 1.78 million per day; a GDP growth rate of 3.76 per cent; and an inflation rate of 21.4 per cent.
It has a total aggregate revenue projection of N18.32 trillion and a deficit of N9.18 trillion (3.88 per cent of GDP).
This is lower than the N13.78 trillion deficit recorded in 2023, which represents 6.11 per cent of GDP.
Tinubu said the 2024 budget deficit will be financed by new borrowings totalling N7.83 trillion, N298.49 billion from privatisation proceeds and N1.05 trillion drawdown on multilateral and bilateral loans secured for specific development projects.
The Minister of Budget and Economic Planning, Atiku Bagudu, while releasing the breakdown of the budget later yesterday, said out of the N27.5trn aggregate expenditure, N8.7trn would be spent on capital projects.
From N18.51 trillion recurrent expenditure, N10.26 trillion would be on non-debt recurrent expenditure; while N8.25tr would go to debt servicing and N234bn on sinking funds for maturing bonds.
The minister added that a total of N6.48 trillion was provided for personnel and pension costs.
Bagudu said of the aggregate revenue of N18.32 trillion, N7.94 trillion or 43.3% was projected to come from oil-related sources; while the balance of N10.39 trillion was to be earned from non-oil sources.
He said the share of non-oil tax was projected at N3.52 trillion compared to N2.43 trillion in 2023.
Security gets highest sectoral allocation
The breakdown of the budget estimates showed that the defence and security sector received the highest allocation of N3.25 trillion, which is about 12 per cent of the budget.
This is followed by education, which got N2.2trn (7.9 per cent); the health sector, N1.4 trillion (5 per cent) and infrastructure, N1.32trn (5 per cent).
Comparison with 2021, 2022, 2023 sectoral allocations
In 2023, the defence and security sector had the highest vote of N2.74 trillion (13 per cent of the total budget); education, N2.05 trillion (10 per cent) and health, N1.58 trillion (eight per cent).
In 2022, the budget for defence and security in 2022 was N2.41tn; the education sector was allocated N1.29 trillion in 2022 representing 7.9 per cent of the total budget. The entire federal allocation to health in 2022 was N811.2 billion, including funding for vaccines and basic healthcare trust funds.
The 2021 budget for the Ministry of Defence was put at N840.56 billion with another N121 billion earmarked for capital projects. In 2021, the ministries of education and health got N545.10 and N380.21 billion respectively.
Observers noted that the official devaluation of the naira had made issues more complicated this time around.(www.naija247news.com)