President Bola Tinubu, on Wednesday, presented the proposed N27.5 trillion 2024 budget to a joint session of the 10th National Assembly in Abuja.
The 2024 Budget is 10.8% (or about N2.68 trillion) higher than the 2023 FGN aggregate expenditure estimate of N24.82 trillion (including the N2.996 billion supplementary provision).
On Friday, the House of Representatives passed the N27.5tn 2024 budget for a second reading.
Federal Government revenue in 2024 is projected at N18.32 trillion – N7.94 trillion or 43.3 percent is projected to come from oil related sources while the balance N10.39 trillion is projected from non-oil sources.
FG revenue from non-oil taxes is expected to be N3.52 trillion, over N1 billion increase from N2.43 trillion in 2023, while N4.46 is projected from share of minerals and mining revenues in 2024 from N3.64 trillion in 2023.
The projected FG share of VAT revenue is N549.46 billion while N26.16 billion is projected from Electronic Money Transfer Levy (EMTL).
The revenue projection for grants and donor funded projects is N685.63 billion.
Whereas dividends from NLNG, Bank of Industry, Development Bank of Nigeria, Galaxy Backbone and Bank of Agriculture are projected at N357.92 billion, a 337.6 per cent compared to N81.79 billion in 2023.
The budget deficit is projected to be N9.18 trillion. This N4.6 trillion down from N13.80 trillion budgeted in 2023.
The proposed deficit represents about 3.88% of the estimated GDP and is higher than the 3% threshold stipulated in the Fiscal Responsibility Act (FRA), 2007, but lower than the 2023 level of 6.11%. FRA 2007 however allows government to exceed the 3% threshold if justified by threats to national security.
Debt servicing would gulp N8.25 trillion
Capital expenditure received N8.70 trillion, slightly higher than the 2023 provision of N8.43 trillion. Only 25% of capital budget was released in 2023.
The Defence and Security sector got N3.25 trillion or 12 percent of the budget expenditure
Education sector received N2.18 trillion or 7.9 percent of the budget. Out of this, the Federal Ministry of Education and its agencies (Recurrent & Capital expenditure) would receive N1.23 trillion; Universal Basic Education Commission (UBEC) would receive N251.47 billion while Tertiary Education Trust Fund (TETFUND) for infrastructure projects in Tertiary institutions got N700.00 billion.
Health sector got N1.33 trillion or 5 percent of the budget. Out of this Federal Ministry of Health and its agencies (Recurrent & Capital expenditure) would receive N1.07 trillion; Gavi/ Immunization funds, including Counterpart Funding for Donor Supported Programmes got N137.21 billion while Transfer to Basic Healthcare Provision Fund (BHCPF) 1% of CRF stood at N125.74 billion
Infrastructure was allocated N1.32 trillion or 5 percent while Social Development and Poverty got N534 billion or 2 percent of the budget.
Statutory transfers was projected at N1.30 trillion while Non-debt recurrent expenditure stood at N10.26 trillion.
Personnel and pension costs would gulp a total of N6.48 trillion (inclusive of N1.02 trillion for Government Owned Enterprises), an increase of N576.16 billion or 9.8% compared to 2023 budget. It is 35.4% of the projected aggregate revenues for 2024.
Presenting the budget, Tinubu said it is a “Budget of Renewed Hope; a budget which will go further than ever before in cementing macro-economic stability, reducing the deficit, increasing capital spending and allocation to reflect the eight priority areas of this Administration.
“The budget we now present constitutes the foundation upon which we shall erect the future of this great nation,” he added.
Obinna Ginger, a member of the Labour Party representing Isiala Ngwa North/South Federal Constituency, Abia State, noted that in the budget presented by Mr President, “the education sector is not fully represented. Let us look at upgrading the allocation to education because we still have less than 26 per cent of the UNESCO benchmark.”
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.