2024 Budget: Education, Others
Defense, Education, Roads Take Center Stage
The President Bola Tinubu-led administration has announced its ambitious plan for the 2024 budget. They want to allocate a whopping N27.5tn to important sectors like defense, education, and infrastructure. The Minister of Budget and National Planning, Abubakar Bagudu, shared that N6.48tn, which is 96 percent of the allocation, will go towards personnel and pension. This is a big increase compared to the previous year.
Tax Revenue Target Set at N10.4tn
To fund this budget, the Federal Government aims to collect a significant N10.4tn from taxes, dividends, and other sources. President Tinubu stressed the importance of completing crucial infrastructure projects to improve the economy and reduce costs for businesses and the average Nigerian.
Subheading 3: PPP, IGR, Loans, and Asset Sales to Support Infrastructure Financing
The Tinubu administration plans to use Public-Private Partnerships (PPP) to finance infrastructure projects. They also want to generate more Internal Generated Revenue (IGR), take out loans, and sell assets. President Tinubu believes that involving the private sector in infrastructure provision is crucial and wants to attract both domestic and foreign investors.
Education Sector Sees Over 100% Increase in Funding
The education sector will receive a significant boost in funding, with N2.18tn allocated. This represents a 101.85 percent increase from the previous year. Specific allocations include N1.23tn for the Federal Ministry of Education, N251.47bn for the Universal Basic Education Commission, and N700bn as transfers to the tertiary education trust fund.
Infrastructure Focus and Private Sector Involvement
A large portion of the budget, N1.32tn, will be dedicated to infrastructure development in sectors like power, transport, water resources, aviation, works, and housing. Bagudu, the former Kebbi governor, highlighted President Tinubu’s directive to involve the private sector in these projects. The government recognizes that the private sector can bring more resources compared to what the government has.
Fiscal Discipline and Realistic Assumptions
President Tinubu stressed the importance of being financially responsible and making realistic assumptions. The proposed budget is based on a conservative oil price benchmark of $77.96 per barrel and a Naira to US Dollar exchange rate of N750/$ for 2024. The overall budget includes N9.92tn for non-debt recurrent expenditure, N8.25tn for debt service, and N8.7tn for capital expenditure.
Revenue Generation and Reduction in Reliance on Loans
President Tinubu aims to increase the ratio of revenue to GDP from less than 10 percent to 18 percent during his administration. The government wants to reduce its reliance on loans, and the projected budget deficit for 2024 is N9.18tn, which is 3.88 percent of GDP. They will work on controlling financial leakages and implementing key financial management reforms.
Mixed Reactions from Lawmakers and Opposition
Lawmakers from different parties praised the budget for trying to reduce the deficit and increase capital expenditure. However, the opposition, including the PDP and LP, have concerns about what they see as a political agenda. Despite the mixed reactions, lawmakers plan to carefully examine the budget in the coming weeks.
Finance Minister Emphasizes Realistic Assumptions and Less Reliance on Borrowing
Finance Minister Wale Edun highlighted that the budget projections are based on realistic assumptions and aim to stabilize the Nigerian economy for inclusive growth. He emphasized the government’s shift towards relying less on borrowing and focusing on revenue and expenditure management to get the best value for money.
As the budget undergoes further scrutiny and approval, the nation eagerly awaits how these allocations and revenue projections will shape its economic landscape in the coming year.
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