The Bola Tinubu-led administration is gearing up to allocate a significant portion—N6.75tn—of the projected N27.5tn budget for 2024. This substantial allocation is earmarked for defense and security, education, and infrastructure development. Notably, nearly 96% of this budget is dedicated to personnel and pensions, marking a substantial increase from the 2023 allocation. Concurrently, the administration is eyeing a hefty sum of N10.4tn to be generated from various sources, including taxes and dividends.
During the unveiling of the 2024 Appropriation Bill, President Tinubu underlined the primary goal of the budget, christened 'Budget of Renewed Hope.' The overarching aim is to foster robust economic growth that generates employment opportunities while simultaneously stabilizing the macroeconomy. The proposed budget intends to create a more conducive environment for investment, improve human capital development, alleviate poverty, and enhance social security accessibility.
Tinubu emphasized the significance of concluding vital infrastructure projects. This strategic move aims to tackle fundamental structural challenges within the economy. By doing so, it's expected that operational costs for businesses will decrease, subsequently positively impacting the cost of living for Nigerians.
The administration's strategy prioritizes sectors crucial for the country's progress. Defense and internal security are set as top priorities, with plans for overhauling the internal security framework to enhance law enforcement capabilities. This reformation aims to secure lives, property, and investments nationwide.
Additionally, the budget is focused on bolstering human capital—a vital resource for national development. Special attention will be devoted to children, deemed the foundation of the nation's future.
Economic growth projections for the country are ambitious, targeting a minimum GDP increase of 3.76%. Despite current inflationary challenges, the government anticipates a reduction in inflation to 21.4% by 2024, a decline from the current 27.33%. These projections are based on conservative oil price benchmarks and a Naira to US Dollar exchange rate of N750/$ for the fiscal year.
The budget breakdown highlights substantial increments in allocations across various sectors from previous years:
- Education: A significant rise to N2.18tn, a staggering 101.85% increase compared to the 2023 budget.
- Defense and Security: A notable surge by 46.39%, reaching N3.25tn.
- Health: A commendable 23.15% increase to N1.33tn.
Infrastructure development remains a pivotal focus, with provisions totaling N1.32tn. President Tinubu stressed the imperative of increased private sector involvement in infrastructure projects. Leveraging private investments to complement government funding across vital sectors like roads, railways, airports, and housing is a strategic move.
Funding the proposed budget will necessitate revenue generation of N18.32tn. With a projected deficit of N9.18tn (3.88% of GDP), financing avenues will include fresh borrowings amounting to N7.83tn, proceeds from privatization totaling N298.49bn, and N1.05tn from specific development project loans.
The overarching objective revolves around reducing reliance on borrowings. Finance Minister Wale Edun underscored the significance of realistic budget assumptions aimed at stabilizing Nigeria's economy for inclusive growth. The government is targeting increased revenue through tax reforms, privatization initiatives, and enhanced domestic and foreign investments.
Lawmakers lauded the budget's emphasis on diminishing deficits and escalating capital expenditure, expressing optimism about its potential to positively impact the country's growth trajectory. However, opposition parties raised concerns regarding certain aspects of the proceedings, highlighting perceived irregularities during the president's presentation.
Stay tuned for the continuation!
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