The Federal Government has said that it might consider returning to the National Assembly to seek the federal lawmakers’ approval for a supplementary budget next year if the government surpasses its revenue projections.
President Bola Ahmed Tinubu’s N27.5 trillion 2024 national budget was currently being considered by the federal parliament.
Speaking before the joint sitting of National Assembly Committee on Finance on Monday, Mr Wale Edun told the lawmakers that there had been a tremendous improvement in the nation’s revenue profile in recent months.
He said if the revenue continue to increase, the federal government would have no other option than to return to National Assembly to seek further appropriation for the additional revenue .
The Minister said, ” The revenue performance was encouraging , here we see that the revenue profile is encouraging.
“It is expected that it would continue to be encouraging , there is fiscal policy and tax reform committee which is already at work.
“It is meant to provide fundamental changes together with digitalization and greater efficiency in collection because it is revenue to debt that can give us the opportunity to even increase this budget.
“If we have a solid revenue performance , we will be coming back , and am sure Mr President will authorise the process to return to the National Assembly to appropriate extra revenue that is a situation we are all looking forward.”
Edun said that the Federal Government was already looking at how to speed up the procurement process in order to increase capital spending in the 2024 budget.
He said, “When we look at the actual budget performance , expenditure as of the third quarter of the year which is September, was 32 per cent below the budget estimate.
“Revenue was five per cent up, the revenue performance is quite encouraging because of change in exchange rate , a depreciation of the currency and the fact we have foreign debt of about $46bn outstanding.
“This means that debt service was up by 18 per cent, capital expenditure perform below budget quite significantly.
“We are looking at issue of procurement process and ways to speed up capital spending.
“In terms of overall balance of the budget , fiscal deficit is expected to come down from N13.7 trillion to N9.2 trillion.
“Importantly, the deficit , the amount of the budget to be funded by borrowing is down from 6.1 per cent to 3.9 per cent that is the per cent of GDP and Capital expenditure remains at 32 per cent so that is the while structure of the budget .
“In the meantime the efforts in tax side , to tax revenue as a percentage of GDP from its relatively low figure of under 10 per cent is doubling now within 2 or 3 years to 18 per cent.
The Chairman of the Joint National Assembly Committee on Finance, Senator Sani Musa, said Nigeria was currently in a delicate situation, economically.
He however said that the President Bola Tinubu administration was doing everything possible to change the narratives.
Musa said, “Nigeria today has found itself in a delicate situation , the high rate of unemployment and you know this transition period.
“It is a new government , so that we must give Nigerians the right budget , what is the right budget , we must look at our revenue projections , we must look at our performances and then look at what we are committing ourself to by the time this budget is passed.
“We want to make sure that before we even pass the budget we have really checked it, where to dot and cross it, we do it and at the end of the day, we will have a budget that is at least what is expected to do.
“We need a budget that will renew the hope this country and that is why Mr President tagged it the renewed Hope Budget”.
