- Focus on infrastructure, security, human dev
BY COBHAM NSA, ABUJA – Minister of Budget and National Planning, Senator Udoma Udo Udoma said the Presidency does not operate any security vote assuring that there is no such provision in the national budget.
Speaking against the backdrop of insinuations that the Muhammadu Buhari’s Presidency is scouting for funds through the security vote to prosecute the 2019 general elections, Udoima said no such allocations are made for either the office of the President or any Federal Government official in the current dispensation.
Udoma said at the 2018 budget breakdown briefing in Abuja on Thursday Udoma said that the State House budget does not have any line item as Security vote because adequate provisions have been made to cater for security-related matters in detailed budgets presented by the Ministry of Interior, Ministry of Defence, Office of the National Security Adviser (ONSA), and Department of State Security (DSS) among others.
According to him, “There is no security vote in the Presidency. Funds are only allocated to the relevant Ministries and security agencies such as Defence, Interior and others saddled with the responsibilities”, adding that provisions are rather made for various military operations across the country, including Operation Lafiya Dole in the North East, and Operation Cat Race in Benue State among others.
He however said that the Federal Government is specifically focusing on infrastructure, security and human development in its implementation of the 2018 budget.
“The 2018 Budget is designed to Consolidate on the achievements of the 2016 Budget of Change & the 2017 Budget of Recovery & Growth, and advance delivery of the goals of Nigeria’s Economic Recovery and Growth Plan (ERGP) 2017 – 2020”, the Minister said
Senator Udoma also state that the Federal Government would borrow about N1.95 trillion of the N9.12 trillion budget, even as the budget is to funded through a revenue projection of N7.1 trillion in addition to the N1.95 trillion coming domestic and foreign borrowings.
He said “the 2018 Budget proposal seeks to continue the reflationary policies of the 2016 and 2017 Budgets which helped put the economy back on the path of growth”, stressing that the plan to continue spending more on on-going infrastructure projects with potentials for job creation and inclusive growth.
“We will continue to leverage private capital and counterpart funding for the delivery of infrastructure projects”, Senator Udoma maintained, noting that; “As with 2016 and 2017 budgets, the 2018 budget has been prepared on the Zero Based Budget (ZBB) Principles.”
Similarly, he explained that “The 2018-2020 Medium Term Fiscal Framework (MTFF) and the Budget proposal reflect many of the reforms and initiatives in the ERGP, which is our roadmap to economic recovery and a more sustainable growth, Projects are linked to government policies and strategic priorities.”
The Minister also hinted that 2018 revenue projections mirror new funding mechanism for JV operations that permit “cost recovery in lieu of previous cash call arrangement; additional oil-related revenue including royalty recovery, new/marginal field licences, early licensing renewals; review of the fiscal regime for oil production sharing contracts (PSCs).”
Admitting that government is also banking on restructuring its equity in JV oil assets, with proceeds to be reinvested in other assets, Senator Udoma said; “This will improve efficiencies in the operations of the JVs and position them for better revenue performance in the future.
Also to meet revenue projections is the plan to increase in excise duty rates on alcohol and tobacco.
“Tax administration improvement initiatives to positively affect collection efficiencies across various tax categories, e.g., tax amnesty programme.”
On key reforms initiatives to improve government revenue, the Minister said; “We have taken on-board some key reform initiatives contained in the ERGP in the 2018 budget.” These include: Deployment of new technology to improve revenue collection; Upward review of tariffs and tax rates where appropriate; Stronger enforcement action against tax defaulters; Improving GOEs’ revenue performance by reviewing their operational efficiency and cost-to-income ratios and generally ensuring they operate in more fiscally responsible manner.
Highlights of the budget include: N2.01 trillion for debt service or 21 per cent of planned spending (about same as in 2017); and Provision to retire maturing bond to local contractors increased by 7 per cent from N177 billion in 2017 to N190 billion in view of the ambitious plan to liquidate all contractor arrears of the FGN going back to several years.
The recurrent (non-debt) spending expected to rise by 17 per cent from N2.99 trillion in 2017 to N3.51 trillion while capital expenditure (excluding transfers) moves higher by 22 per cent to N2.87 trillion from N2.36 trillion in 2017
