BUHARI PRESENTS N8.83TN BUDGET FOR 2019

President Muhammadu Buhari on Wednesday presented N8.83tn budget estimates to a joint session of the National Assembly for their consideration. The 2019 national budget proposal is N300bn lesser than the N9.12tn, which was the size of the 2018 budget. 

The President said the fiscal document was predicated on an oil production estimate of 2.3 million barrels per day and an exchange rate of N305 to a dollar. He also proposed a Gross Domestic Product growth rate of 3.01 per cent and an inflation rate of 9.98 per cent. 

The total projected revenue, according to the President, is N6.97tn, which is three per cent lower than the 2018 estimate of N7.17tn. Buhari said the expected income consisted of oil revenue projected at N3.73tn and non-oil revenue estimated at N1.39tn. 

He explained that the sum of N8.83tn was estimated as the total expenditure with N4.04tn being recurrent expenditure and N2.031tn as capital expenditure. He said apart from being less than the 2018 appropriated expenditure estimate of N9.12tn, the proposed budget was higher than the N8.6tn originally proposed by the executive to the National Assembly for 2018. 

He added that the budget deficit was projected to decrease to N1.86tn (or 1.3 per cent of GDP) in 2019 from N1.95tn projected for 2018. The reduction, he explained, was in line with his governments plans to progressively reduce deficit and borrowings. 

He said, The estimate from non-oil revenue consists of N799.52bn from company income tax; N229.34bn from value added tax, and customs duties of N302.5bn. We have reduced our expectations from independent revenue to N624.58bn. 

Other revenues expected in 2019 include various recoveries of N203.38bn, N710bn as proceeds from the restructuring of government equity in joint ventures, and other sundry incomes of N104.1bn. 

The budget deficit is projected to decrease to N1.86tn or 1.3 per cent of the GDP in 2019 from N1.95tn projected for 2018. 

This reduction is in line with our plan to progressively reduce deficit and borrowings over the medium term," he said. He said the 2019 budget proposal was intended to further place the economy on the path of inclusive, diversified and sustainable growth to continue to lift significant numbers of our citizens out of poverty. 

He added that the underlying drivers of the 2019 revenue projections had been adjusted to reflect current realities. The total revenue projected at N6.97tn (which is three per cent lower than the 2018 estimate of N7.17tn), he said, consisted of oil revenue projected at N3.73tn while non-oil revenue was estimated at N1.39tn. 

(Punch)