By Gift Olivia Samuel, The Sight News
Abuja-The Minister of Budget and National Planning, Senator Udoma Udo Udoma, has said that the 2018 budget will consolidate on the achievements of the 2016 Change Agenda Budget and the 2017 Budget of Recovery and Growth.
The Minister who made this known on Thursday at the budget breakdown in Abuja, noted that the 2018 Budget of Consolidation will deliver on the goals of the Economic and Recovery Growth Plan(ERGP 2017-2020)and will continue to focus on critical ongoing projects from 2017and previous projects.
Giving the breakdown, he disclosed that the total revenue projection was put at N7.17 trillion, with N2.99 trillion expected from oil revenue and N4.18 trillion from Non-Oil Revenue.
On the other hand, expenditure stood at N9.12 trillion, a breakdown of which, Statutory transfer stood at N520 billion,Sinking fund N190 billion, Debt service N2.01 trillion, Recurrent Expenditure N3.51 trillion and capital expenditure at N2.87 trillion.
A breakdown of the major Capital expenditure, showed that Power, Works and Housing got the highest allocation of N682.96 billion while office of the Secretary to the Government of the Federation got the lowest amount of N52.94 billion.
On Recurrent expenditure allocation in the proposed 2018 Budget, Interior had the highest allocation of N501.61 billion, followed by Education N439.26 billion and Ministry of Defence N418.68 billion while Science and Technology had the lowest allocation of N 32.85 billion.
Senator Udoma further stated, that the N7.17 trillion revenue projection exceeded 2017 Fiscal Year by 30.26 % adding that contributions of oil revenue projection is 41.7 %, driven mainly by Joint Venture Cash Call(JVCC) cost reductions, higher price, exchange rate and additional oil related revenue.
He also explained that Independent Revenue, Customs and Company Income Tax projections were adjusted downwards lower than 2017, reflecting current realities.
On the expenditure estimates for 2018 Budget, he said that federal government’s spending estimated at N9.12 trillion,exceeded 2017 Fiscal Year projections by 22.5%.
According to him, “At N2.01 trillion, Debt service is 22 % of planned spending (about the same as in FY2017). Recurrent (non-debt) spending expected to rise by 17% from 2.99 trillion in FY2017 to N3.512 trillion.
“Provision to retire maturing bonds to local contractors increased by 7 % from N177 billion in FY2017 to N190 billion in view of the plan to liquidate all contractors arrears of the FGN going back to several years. Capital expenditure (including transfers) higher by 22 % from N2.36 trillion in FY2017 to N2.87 trillion”.
On deficit, he pointed out that the overall budget deficit of N1.95 trillion in 2018 represents a deficit to GDP ratio of 1.74 %, adding that projected deficit is within threshold stipulated in the Fiscal Responsibility Act 2017.
“Budget Deficit is to be financed mainly by borrowing N1.643 trillion, domestic sources N793 billion, foreign sources N849 billion. A total of N306 billion is expected from privatization and N5 billion from sale of other government property to part finance the deficit” he added.
On his part, the Director General, Budget Office of the Federation, Ben Akabueze, remarked that the Federal budget is an important instrument used in achieving the government’s strategic objectives and plans for the socio-economic development of the nation.
He disclosed that the Federal Government through the Open Government Partnership, is desirous of improving citizens access and understanding of the Federal budget and called for feedback from citizens to help for proper implementation of the 2018 budget and in the planning for future ones.
Among those at the presentation were the Minister of Finance, Kemi Adeosun; Minister of State for Budget and National Planning, Hajia Zainab Ahmed; Minister of Information and the Head of the Civil Service of the Federation, Winifred Oyo-Ita.
