Federal Government proposes N6.866tr budget for 2017

The Federal Government has proposed a budget of N6,866,335,052,740 for 2017. 

The Guardian reports that the Presidency formally informed the National Assembly of the proposal yesterday, and also made it known that it would set up a $25 billion Infrastructural Development Fund as a means of attracting non-budgetary resources to fund its development projects.

This information was contained in the 2017 to 2019 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) sent to the National Assembly for approval yesterday, The Guardian reports.

According to the document, the country’s debt stock was N16.3 trillion ($61.45 billion) as at June 30, 2016.
The document also showed that in adherence to the three per cent threshold set out in the Fiscal Responsibility Act 2007, the 2017 fiscal deficit was projected at N2.7 trillion in nominal terms.

The government projected $42.5 per barrel and 2.2 million barrel per day for crude oil production, despite the volatility in global oil prices, as well as $45bpb and $50bpb for 2018 and 2019 with oil production benchmark of 2.3 million and 2.4 million barrels per day for the same period.

The country’s “Oil and gas sector is expected to rebound with an average growth rate of 9.69 per cent during the period. The year-on-year inflation rate is projected at 12.92percent for 2017 and 12.57 per cent for 2019.

“The nominal GDP is expected to increase from N108, 735 billion for 2017 to N129,773 billion for 2019. Similarly, private consumption expenditure is projected to grow from N80,048 billion for 2017 to N91,955 billion for 2019.

“These are important revenue projections, in addition to enhancing the capacity of the government to increase spending on core social and economic programmes during the MTEF period,” the documents read in part.

The Guardian reports that the aggregate revenue to fund the 2017 budget, according to the budget framework, is expected to increase over the 2016 estimate of N3.855 trillion by about eight per cent or about N313billion. Thirty-three percent of the amount is expected from oil sources while the balance is derivable from non-oil sources in consonance with the government’s renewed focus on diversification of its revenue base.

The recurrent (non-debt expenditure) and capital payments are being projected to increase in nominal terms by N217.42 billion and N177.6 billion in 2017 over the 2016 estimate.

On the risks to the Medium-Term Outlook, The Guardian reports that the document states: “The Nigerian economy has remained susceptible to a number of recurring risks and persistent shocks. These risks have posed setbacks to government finances, constrained economic growth and consequently, slowed the pace of achieving development objectives. These shortcomings have been carefully considered in designing the Medium Term Strategy.”

Read more: http://guardian.ng/news/government-plans-n6-866tr-budget-for-2017/