Sunday Aborisade in Abuja
President Bola Tinubu on Wednesday presented an aggregate expenditure of N27.5 trillion as the proposed Federal Government budget for the 2024 fiscal year.
Tinubu told the joint session of the National Assembly during the official presentation of the Renewed Hope Budget that his government had proposed a non-debt recurrent expenditure of N9.92trn.
He also proposed N8.25trn for debt servicing while N8.7trn was projected as capital expenditure.
He said, “Nigeria remains committed to meeting its debt obligations. Projected debt servicing is 45 per cent of the expected total revenue.
“Budget deficit is projected at N9.18trn in 2024 or 3.88 per cent of the Gross Domestic Product.
“This is lower than the N13.78trn deficit recorded in 2023 which represents 6.11 per cent of the GDP.
“The deficit will be financed by new borrowings totalling N7.83trn”
The President said N298.49bn was being expected from privatization proceeds and N1.05trn drawdown on multilateral and bilateral loans secured for specific development projects.
Tinubu said, “After a careful review of developments in the world oil market and domestic conditions, we have adopted a conservative oil price benchmark of $77.96 per barrel and daily oil production estimate of 1.78 million barrels per day.
“We have also adopted a Naira to US Dollar exchange rate of N750 per US Dollar for 2024.
“Our government remains committed to broad-based and shared economic prosperity.
“We are reviewing social investment programmes to enhance their implementation and effectiveness. In particular, the National Social Safety Net project will be expanded to provide targeted cash transfers to poor and vulnerable households.
“In addition, efforts will made to graduate existing beneficiaries toward productive activities and employment.
“We are currently reviewing our tax and fiscal policies. Our target is to increase the ratio of revenue to GDP from less than 10 percent currently to 18 per cent within the term of this Administration.
“Government will make efforts to further contain financial leakages through effective implementation of key public financial management reforms.”