Minister for Budget and
National Planning, Sen. Udoma Udo Udoma says Federal Government will fund the
2018 budget using key reform initiatives contained in the Economic Recovery and
Growth Plan (ERGP).
He said this on Tuesday in Abuja while presenting an overview
of the 2018 budget proposal.
The budget, tagged “Budget of
Consolidation’’, which was presented to the joint
session of the National Assembly by President
Muhammadu Buhari on Nov. 7 is expected to reinforce
and build on recent accomplishments of the government.
Its key parameters include a crude oil benchmark price
of 45 dollar per barrel, oil production estimate of 2.3 million barrels per day
and exchange rate of N305 per dollar.
The budget also has projected oil revenue of N2.442
trillion and non-oil projection of N4.165 trillion.
It has a capital expenditure projection of N2.428
trillion, recurrent expenditure of N3.494 trillion, N2.014 trillion for debt
servicing and fiscal deficit of N2.005 trillion.
Udoma said Federal Government would deploy new
technology to improve revenue collection, enhance tighter performance
management framework for State Owned Enterprises (SOEs) and stronger
enforcement action against tax defaulters.
He added that the 2018 revenue projections reflects
new funding mechanism for Joint Venture (JV) operations, allowing for cost
recovery in lieu of previous cash call arrangements.
He noted that “there will be
restructuring of government’s equity in JV oil assets, reduction in equity
holding with proceeds to be reinvested in other assets.
“This will improve efficiencies in
the operations of the JVs and position them for better revenue performance in
future, increase in excise duty rates on alcohol and tobacco.
“Tax administration improvement
initiatives to positively affect collection efficiencies across various tax
categories such as tax amnesty programme.’’
Udoma said additional oil-related revenue including:
royalty recovery, new/marginal field licences, early licencing renewals and
review of the fiscal regime for oil Production Sharing Contracts (PSCs), would
also be employed.
He explained that oil revenue would account for 37 per
cent of the estimated revenue, while independent revenue was put at 12.8 per
cent, JV equity restricting, 10.7 per cent, Company Income Tax (CIT), 12 per
cent and Value Added Tax (VAT), 3.1 per cent.
“Customs is expected to account for
4.9 per cent, recoveries, 7.8 per cent, tax amnesty 1.3 per cent, signature
bonus 1.7 per cent, grants and donor funding 3 per cent and other unnamed
sources to account for 5.5 per cent of the revenue."
He said just like earlier budgets by the
administration, it would ensure that funds were geared toward financing various
capital projects
He cited some projects the Federal Government would
embark on across several sectors of transport, power, health, education, works,
housing, water resources agriculture and rural development, mines and steel
development and special intervention programmes among others.
The minister said though the Federal Government had
earmarked N2.42 trillion for capital projects, it would attract private sector
involvement in the implementation of the projects, especially roads.
“What we need to construct roads is
in trillions and we do not have that money now that is why we are involving
Public Private Partnerships (PPP).
“Let us say what we have in the
budget to use for roads, though would not be enough, would be Federal
Government’s contribution towards construction of roads, while other support
would come from the private sector.’’
Source: PulseNG
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