The Defence and Security sector N3.25trillion of 12 percent budget, N1.32trillion on Infrastructure sector both gulped the 2024 budget of N27.5 trillion budget based on the exchange rate.
The Minister of Budget and Economic Planning, Senator Abubakar Atiku Bagudu during the public presentation of the Federal Government of Nigeria 2024 Budget proposals in Abuja said Defence and Security sector which includes the military, police , intelligence and paramilitary has 12 percent of the budget.
Also, he said the infrastructure which includes provision for works and housing, power , transport , water resources and Aviation has 5 percent of the budget .
According to him, the education sector got N2.18 trillion of 7.9 percent and the breakdown is that N1.23trillion amount provision is for the Ministry of Education and agencies on recurrent and capital expenditure, N251.47billion amount provision for Universal Basic Eductation Commission (UBEC) while N700 billion transfers will go to the Tertiary Education Trust Fund for infrastructure projects in tertiary institutions.
In his words ” the FGN’s 2024 aggregate expenditure is estimated at N27.50 trillion and 10.8percent of about N2.68trillion higher than the 2023 FGN aggregate expenditure estimate of N24.82 trillion including the N2.996billion supplementary provision.
“The 2024 expenditure estimates includes statutory transfers of N1.30trillion and non-debt recurrent expenditure of N10.26trillion.
“The provision of N3.25trillion and N234 billions have been made for Debt Service and sinking fund to retire maturing bonds issued to local contractors /creditors, respectively.
” A total of N6.48trillion inclusive of N1.02 trillion for GOES is provided for personnel and pension costs, an increase of N576.16 billion or 9.8percent over the 2023 provisions. This is 35.4 percent of the projected aggregate revenues for the 2024.
“The aggregate amount available for capital expenditure in the 2024 budget is N8.70 trillion, higher than 2023 provision of N8.43 trillion,” he said.
The Minister of Finance, Wale Edun, said the budget is realistic and something they can say was successfully implemented by President Bola Tinubu.
He said President Bola Ahmed Tinubu had announced that in order to streamline the Nigerian economy, there is going to be less reliance .
According to him, the budget deficit is been brought down from 6.1 percent GDP to 3.15 percent GDP. “That is a huge change in direction from unlimited borrowing focusing on expenditure management to give value for money with expenditure and to raise revenue.
“We heard that the key target is to increase tax to GDP from under 10 percent to 18 percent in the couple of weeks time and that target is hugely a ambitious ones in the likes of borrowing likewise, Debt Service is indicated to fall by this budget ,” he said.
