President Muhammadu Buhari on Wednesday presented to the joint session of the National Assembly, a budget of
N8.83 trillion for the 2019 fiscal year, which is N300 billion lower than the
current budget of N9.1trillion.
N8.83 trillion for the 2019 fiscal year, which is N300 billion lower than the
current budget of N9.1trillion.
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| President Buhari presenting the 2019 budget |
According to Buhari, N4.04 trillion or 50.31 per cent is earmarked
for recurrent expenditure and N2.03 trillion representing 22.98 per cent
earmarked for capital projects.
for recurrent expenditure and N2.03 trillion representing 22.98 per cent
earmarked for capital projects.
Other estimates are N492.36 billion for statutory transfers; N2.14
trillion for debt servicing and provision of N120 billion as sinking
fund.
trillion for debt servicing and provision of N120 billion as sinking
fund.
He explained that the sinking fund would be used to “retire maturing bonds to local contractors”.
The 2019 budget proposal is based on an oil production estimate of
2.3 million barrels per day and an exchange rate of N305 to a dollar.
2.3 million barrels per day and an exchange rate of N305 to a dollar.
Other benchmarks are: real Gross Domestic Product (GDP) growth rate of 3.01 per cent and inflation rate of 9.98 per cent.
The total projected revenue, according to the president, is N6.97
trillion, which is three per cent lower than the 2018 estimate of N7.17
trillion.
trillion, which is three per cent lower than the 2018 estimate of N7.17
trillion.
Buhari said the expected income consisted of oil revenue projected at
N3.73 trillion, and non-oil revenue estimated at N1.39 trillion.
N3.73 trillion, and non-oil revenue estimated at N1.39 trillion.
“The estimate from non-oil revenue consists of N799.52 billion from
company income tax; N229.34 billion from value added tax, and customs
duties of N302.5 billion.
company income tax; N229.34 billion from value added tax, and customs
duties of N302.5 billion.
“We have reduced our expectations from independent revenue to N624.58 billion.
“Other revenues expected in 2019 include various recoveries of
N203.38 billion; N710 billion as proceeds from the restructuring of
government equity in joint ventures, and other sundry incomes of N104.1
billion,” he said.
N203.38 billion; N710 billion as proceeds from the restructuring of
government equity in joint ventures, and other sundry incomes of N104.1
billion,” he said.
The president explained that the total N8.83 trillion proposed
expenditure for 2019 included grants and donor funds amounting to
N209.92 billion.
expenditure for 2019 included grants and donor funds amounting to
N209.92 billion.
Buhari said although the 2019 estimate was lower than the 2018 budget
of N9.1 trillion, it was higher than the N8.6 trillion originally
proposed by the executive to the National Assembly.
of N9.1 trillion, it was higher than the N8.6 trillion originally
proposed by the executive to the National Assembly.
The budget deficit is projected to decrease to N1.86 trillion or 1.3
per cent of the GDP in 2019 from N1.95 trillion projected for 2018.
per cent of the GDP in 2019 from N1.95 trillion projected for 2018.
“This reduction is in line with our plan to progressively reduce deficit and borrowings over the medium term,” he said.
On sectoral allocation, the president said the Ministry of Interior
would get N569.07billion, Defence (N435.62 billion), Education (N462.24
billion) and Health (N315.62 billion).
would get N569.07billion, Defence (N435.62 billion), Education (N462.24
billion) and Health (N315.62 billion).
Meanwhile, there was a mild drama during the budget presentation, as some lawmakers cheered, while some booed the president as he read his speech.
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