The federal government is proposing a smaller budget size of N8. 6 trillion for 2019 fiscal year compared to 2018 budget figure of N9.1 trillion.
It also envisaged a total revenue projection of N7.9 trillion, reductions in both borrowing and deficit financing going by provisions contained in 2019- 2021 Medium Term Expenditure Framework/ Fiscal Strategy paper unveiled Thursday in Abuja by the Minister of Budget and National planning Senator Udoma Udo Udoma.
Addressing members of the public comprising the media and members of Civil Society Organizations, Udoma said the government was oblivious of revenue challenges assailing it. Going forward into 2019 budget, he said the government will trim down drastically on borrowing by ” cutting coat according to size of pocket and increase revenue substantially “.
Giving an insight into 2019 budget projections captured in MTEF, the Minister listed key assumptions which include: oil production volume of 2.3 million barrels per day at an oil price of $60 , an exchange rate of N305 to dollar; inflation rate of 9.98% and GDP growth rate of 3%.
The federal government, he said projected an oil revenue of N3.6 trillion in 2019 against N2.9 trillion figure of 2018, and non- oil revenue projection of N1.385 trillion as against N1.348 trillion in 2018 budget. According to the breakdown of non oil revenues, for 2019 government projected Company Income Tax( CIT ) of N799.5 billion as against 2018 figure of N794.6 billion, VAT projection of N229.3 billion against 2018 figure of N207.5 billion; share of federation account levy at N54.1 billion against 2018 figure of N57.8 billion.
In the coming year, federal government spotted top nine Government’s Owned Enterprises ( excluding NNPC) to generate the sum of N955.3 billion, sum of N624.5 billion to be generated from Independent revenue sources compared to 2018 figure of N847.9 billion.
For expenditure, government protected statutory transfer of N506.8 billion against 2018 figure of N530 .4 billion, debt service of N2,144,014,113.092 trillion against 2018 figure of N2,013,833.365 trillion ; sinking fund of N220 billion against 2018 figure of N190 billion. For 2019, the government intends to commit more funding in paying pension, gratuities and retirement benefits of retired employees as it proposed N527 billion against 2018 figure of 241.9 billion.