On Wednesday, president Muhammadu Buhari presented the 2017 Budget to a joint session of the National Assembly at the National Assembly complex.
Sen. Udoma Udo Udoma, the Minister of Budget and National Planning, will on Monday give an in-depth breakdown of the N7.30 trillion 2017 budget estimates.
A statement issued on Wednesday in Abuja by the minister’s Media Adviser, James Akpandem, noted that Udoma would give breakdown of the budget proposal presented on Wednesday to the National Assembly by President Muhammadu Buhari.
Tagged “Budget of Recovery and Growth”, the 2017 budget, is higher than the 2016 N6.08 trillion appropriation by about 19.95 per cent.
Here is a breakdown of how money will be made and spent.
Budget size: N7.298tn
(20.4% higher than 2016 estimates)
Benchmark crude oil price – $42.5 per barrel
Oil production estimate – 2.2 million barrels per day
Average exchange rate – N305 to the US dollar.
Aggregate revenue available to fund the federal budget is N4.94tn
Deficit – N2.36tn (about 2.18% of GDP)
The deficit will be financed mainly by borrowing which is projected to be about N2.32tn.
067tn of borrowing will be sourced from external sources while, N1.254tn will be borrowed from the domestic market.
The proposed aggregate expenditure of N7.298tn will comprise:
Statutory transfers – N419.02bn
Debt service – N1.66tn
Sinking fund – N177.46bn (to retire certain maturing bonds)
Non-debt recurrent expenditure – N2.98tn
Capital expenditure of N2.24tn (including capital in Statutory Transfers)
A significant portion of recurrent expenditure has been provisioned for the payment of salaries and overheads in institutions that provide critical public services. The budgeted amounts for these items are:
37bn for the Ministry of Interior;
01bn for Ministry of Education;
87bn for Ministry of Defence; and
87bn for Ministry of Health.
Capital Expenditure: N2.24tn (30.7% of total budget)
These capital provisions are targeted at priority sectors and projects.
Key capital spending provisions in the Budget include the following:
Power, Works and Housing: N529bn;
Special Intervention Programmes:
Water Resources: N85bn;
Industry, Trade and Investment: N81bn;
Universal Basic Education Commission: N92bn
Federal Capital Territory: N37bn;
Niger Delta Ministry: N33bn; and
Niger Delta Development Commission: N61bn;
N100bn provided in the Special Intervention programme as seed money into the N1tn Family Homes Fund that will underpin a new social housing programme.
N14bn allocated as counterpart funding for the Lagos-Kano, Calabar-Lagos, Ajaokuta-Itakpe-Warri railway, and Kaduna-Abuja railway projects.
Budgetary allocation to the Judiciary increased from N70bn to N100bn (to enhance the independence and efficiency of the judiciary)