Udoma Highlights 2018 Budget, Assures Of Adequate Funding
BY COBHAM NSA, ABUJA – The Federal Government will leverage on key reform initiatives in its Economic Recovery and Growth Plan (ERGP) to implement the 2018 budget and deliver democracy dividends to Nigerians.
Minister for Budget and National Planning, Senator Udoma Udo Udoma says ERGP focuses mainly on agriculture with a view to ensuring adequate food security while also seeking to engender sustainable development through huge investments in energy, industrialisation and social investment.
Senator Udoma said key parameters in the 2018 budget proposals include; the 45 dollar per barrel crude oil benchmark price; 2.3 million barrels per day oil production estimate; and N305 per dollar exchange rate
Speaking at the public presentation of 2018 Budget proposals in Abuja on Tuesday, the Minister said Government will focus on underpinning and building upon progress made in critical sectors of the economy.
He explained that the budget is also projecting the sum of N2.442 trillion as oil revenue with N4.165 trillion as non-oil revenue projection, adding that the capital expenditure projection stands at N2.428 trillion; N3.494 trillion for recurrent expenditure; N2.014 trillion for debt servicing; and N2.005 trillion as fiscal deficit.
According to him, high priority is being placed on using new technology to boost revenue collection and improve tighter performance management framework for State Owned Enterprises (SOEs) while also ensuring tougher sanctions and enforcement action against tax cheats.
Senator Udoma further said the administration’s 2018 income projections mirror new funding mechanism for Joint Venture (JV) operations that would allow for cost recovery in lieu of previous cash call arrangements, adding; “there will be restructuring of government’s equity in JV oil assets, reduction in equity holding with proceeds to be reinvested in other assets.”
Insisting that the plan is to improve efficiencies in the JVs’ operations; position them for better revenue performance in future; and increase in excise duty rates on alcohol and tobacco, Senator Udoma said; “Tax administration improvement initiatives to positively affect collection efficiencies across various tax categories such as tax amnesty programme.’’
For him, government also intends to go after extra oil-related income that includes royalty recovery, new/marginal field licences, early licencing renewals and review of the fiscal regime for oil Production Sharing Contracts (PSCs).
On government revenue sources, Udoma said oil is expected to produce 37 per cent of the anticipated revenue; independent revenue placed at 12.8 per cent; JV equity restricting at 10.7 per cent; Company Income Tax (CIT) – 12 per cent; and Value Added Tax (VAT) coming in at 3.1 per cent.
Similarly, he said; “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.
Maintaining that the 2018 Budget would, like past Appropriation Acts by the President Muhammadu Buhari’s administration, ensure resources are provided to fund various capital projects during the year, the Minister said government is committed to delivering on several projects across various sectors of the economy.
He listed the sectors as power, health, agriculture, rural development, education, transport, works, housing, water resources, mines and steel development as well as special intervention programmes among others.
He however said government is seriously eyeing private sector partnership in projects’ implementation of the projects, particularly roads despite N2.42 trillion earmarked for capital projects in the budget.
Tagged “Budget of Consolidation’’, the 2018 budget was presented by President Muhammadu Buhari to the joint session of the National Assembly on November 7, 2017.
