Federal Government has explained that it plans to finance the projected N9.18 trillion deficit in the proposed N27.5 trillion 2024 budget through new borrowings, privatisation proceeds and drawdown on multilateral and bilateral loans secured for specific development projects.
In the aggregate expenditure of N27.5 trillion proposed for the Federal Government in 2024, the non-debt recurrent expenditure is N9.92 trillion while debt service is projected to be N8.25 trillion, and capital expenditure will gulp N8.7 trillion.
President Bola Tinubu while presenting the Appropriation bill to the National Assembly on Wednesday, said Nigeria remains committed to meeting its debt obligations and put the projected debt service at 45 percent of the expected total revenue.
The budget deficit projected at N9.18 trillion in 2024 or 3.88 percent of the Gross Domestic Product (GDP) is lower than the N13.78 trillion deficit recorded in 2023 which represents 6.11 percent of GDP.
According to the government, the deficit will be financed by new borrowings totalling N7.83 trillion, N298.49 billion from privatisation proceeds and N1.05 trillion drawdown on multilateral and bilateral loans secured for specific development projects.
Tagged, “Budget of Renewed Hope”, President Tinubu highlighted that his administration remains committed to broad-based and shared economic prosperity.
He pointed out that the government is reviewing social investment programmes to enhance their implementation and effectiveness, stressing that “In particular, the National Social Safety Net project will be expanded to provide targeted cash transfers to poor and vulnerable households.”
The proposed Budget, according to the President seeks to achieve job-rich economic growth, macro-economic stability, a better investment environment, enhanced human capital development, as well as poverty reduction and greater access to social security.
He accorded defence and internal security top priority as he pledged to overhaul the internal security architecture to enhance law enforcement capabilities and safeguard lives, property and investments across the country.
President Tinubu was optimistic that the 2024 Budget has the potential to boost performance, promote the development of Micro, Small and Medium-sized Enterprises, enhance security and public safety, and improve the general living conditions of the people.
. TheWitness
