Few days ago, the president of Nigeria submitted the 2017 Budget to the National Assembly. This is to for them to analyse the budget and give their support. Without a budget, no nation can survive. For as many who were unable to get their hands on the budget, we bring you the Nigerian 2017 Budget Breakdown And Analysis. Read and give your opinion.
Budget is very important aspect of governance. A budget gives the extent to which a government can spend within the given year. The 2016 Nigerian budget had many issues associated with it. Nigerians still remember the padding saga. To such end, the president has promised to ensure such never repeated itself in the next budget. Let us look at the Nigerian 2017 Budget Breakdown And Analysis.
Nigerian 2017 Budget Breakdown And Analysis
The 2017 budget is a total N7.298tn (& trillion, 2 billion and 98 million naira). This budget is 20.4% higher than the 2016 budget. The theme of the 2017 budget is ‘Budget of Recovery and Growth.
- 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;
- Transportation: N262bn;
- Special Intervention Programmes:
- Defence: N140bn;
- Water Resources: N85bn;
- Industry, Trade and Investment: N81bn;
- Interior: N63bn;
- Education N50bn
- Universal Basic Education Commission: N92bn
- Health: N51bn
- 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).
These budget provisions are now subject to the amendment and approval of the National Assembly. The budget which is tagged the “Budget of Recovery and Growth” is expected to put Nigeria on the part of Economic recovery and growth. Keep in touch with us and we shall bring your the amended budget for 2017. Thank you.
What do you say? Can this budget pull Nigeria out of this current economic quagmire? Do you expect a change or business as usual? or, what exactly do you say about this budget? Share your thoughts with us using the comment box below. thank you.