FG presents N8.83trn 2019 budget on $60 per barrel benchmark
President Muhammadu Buhari
BY FRANCIS EZEM
President Muhammadu Buhari has presented an N8.8 trillion budget proposal for the 2019 fiscal year.
Recall that the President had last year proposed N8.612trillion, which was later increased by over N500billion to N9.120 trillion by the National Assembly, which many believe was not fully implemented.
According to the President, who addressed a joint session of the National Assembly Tuesday in Abuja, budget is predicated on $60 per barrel of oil benchmark at 2.3 million barrels per day, Exchange Rate of N305 to $1, a Gross Domestic Product GDP growth rate of 3.01 per cent and inflation rate of 9.98 per cent.
The President also said that the N8.83 trillion figures being proposed are higher than the N8.6 trillion initially proposed but could not give any explanation for the increase.
According him, the Nigerian National Petroleum NNPC has been directed to take all measures to achieve the targeted 2.3 million barrels per day oil output per day to ensure that budgetary projections were realised
Details of the 2019 Appropriation Bill in terms of expenditure show that N4.04 trillion representing 50.31 per cent has been earmarked for recurrent expenditure while N2.03 trillion representing 22.98 per cent was earmarked for capital projects even as N492.36 billion is being proposed for statutory transfers
Others include N2.14 trillion being set aside for debt servicing, provision of N120 billion as sinking fund, which would be used to retire maturing bonds to local contractors.
On other hand, income consists of oil revenue projected at N3.73 trillion, non-oil revenue is estimated at N1.39 trillion while other revenues would include N1.225 trillion, budget deficit is estimated at N1.85 trillion.
Other details include N569.07 trillion allocations to the Ministry of Interior; Defence would get N435.62 billion, Education -N462.24 billion while Health gets N315.62 billion, among others.