President To Submit 8.73 Trln Budget For 2019 To N/Assembly
By Olumidagreaton October 24, 2018
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Nigeria’s Cabinets approved a proposed budget plan of 8.73 trillion naira for 2019, a reduction from its record high 9.12 trillion naira approved for this year. This was contained in the 2019-2021 Medium Term Framework (MTEF) to be submitted to the National Assembly, preparatory to the submission of next year budget.
The government also projected a GDP growth rate of 2.01 percent against 1.50 percent recorded in the second quarter of this year. The government plans its revenue from its mainstay, crude on $60/ per barrel with projections to pump about 2.3 million barrels per day of crude oil into the global market.
Although details of the spending plan was not available, the government seems to have proposed a slash in its borrowing plans following outcry from both local and international financial institutions on the need for the country to slow down on external borrowing.
The reduction in spending plans is also an indication that the government intends to adjust spending in line with expected revenue income rather than depending largely on external borrowing to fund critical infrastructure.
Many analysts have projected a sharp increase in the 2019 budget proposal because of the expectation that the government may increase spending due to the forthcoming election.
However, government sources said the government was mindful of criticism against the country’s huge debt accumulated since the advent of the present administration and was doing everything to disabuse the mind of Nigerians and international community over the issue.