Buhari Presents N8.83trn Budget For 2019
President Muhammadu Buhari on Wednesday unveiled a federal budget of N8.83 trn for the 2019 fiscal year.
The figure came in the 2019 Appropriation Bill presented by the President to a joint session of the National Assembly in Abuja.
The News Agency of Nigeria reports that the 2019 total budget estimate is N300bn lower than the N9.1trillion being implemented for the current fiscal year.
According to Buhari, N4 .04 trn or 50.31 per cent is earmarked for recurrent expenditure and N2.03 trillion representing 22.98 per cent earmarked for capital projects.
Other estimates are N492.36 bn for statutory transfers; N2.14 trn for debt servicing and provision of N120 bn 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 N 305 to a dollar.
Other benchmarks are: real Gross Domestic Product 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 trn, which is three per cent lower than the 2018 estimate of N7.17 trn.
Buhari said the expected income consisted of oil revenue projected at N 3.73 trn and non -oil revenue estimated at N 1.39 trn.
“The estimate from non - oil revenue consists of N799 .52 bn from company income tax; N 229.34 billion from value added tax, and customs duties of N 302.5 bn.
“We have reduced our expectations from independent revenue to N 624 .58 bn .
“Other revenues expected in 2019 include various recoveries of N 203 .38 bn ; N 710 bn as proceeds from the restructuring of government equity in joint ventures, and other sundry incomes of N 104.1 bn ,” he said.
The president explained that the total N 8. 83 trillion proposed expenditure for 2019 included grants and donor funds amounting to N 209 .92 billion.
Buhari said although the 2019 estimate was lower than the 2018 budget of N 9. 1trn , it was higher than the N8.6 trn originally proposed by the executive to the National Assembly.
The budget deficit is projected to decrease to N 1.86 trillion or 1.3 per cent of the GDP in 2019 from N 1 .95 trn 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 N 569 .07 billion, Defence (N 435 .62 bn), Education (N462 .24 bn) and Health (N315 .62 bn).