BUHARI PRESENTS N8.8T NEXT LEVEL BUDGET

President Buhari presnted 2019 Next Level Budget todayt to a join session of national assembly. According to the President, the total budget amount is N8.8 trillion.

The breakdown of the budget shows viz:
Recurrent Expenditure N4.04T represebting 50.3%
Capital Expenditure N2.03T representing 22.98%
Satutory transfers- N492.36B
Debt Servicing N2.14T
Sinking Fund N120B

The budget was based on the following assumptions:

Oil production of 2.3m barrels per day 

Oil Price Benchamark of $60 per barrel

Exchange rate of N305/$

Real Gross Domestic Product growth rate of 3.01 per cent 

 Inflation rate of 9.98 per cent.

The total projected revenue, according to the president, is N6.97trn, which is three per cent lower than the 2018 estimate of N7.17trn.

Buhari said the expected income consisted of oil revenue projected at N3.73trn, and non-oil revenue estimated at N1.39trn.

The estimate from non-oil revenue consists of N799.52bn from company income tax; N229.34 billion from value added tax, and customs duties of N302.5bn.

“We have reduced our expectations from independent revenue to N624.58bn.

“Other revenues expected in 2019 include various recoveries of N203.38bn; N710bn as proceeds from the restructuring of government equity in joint ventures, and other sundry incomes of N104.1bn,” he said.

Buhari said although the 2019 estimate was lower than the 2018 budget of N9.1trn, it was higher than the N8.6trn originally proposed by the executive to the National Assembly.

The budget deficit is projected to decrease to N1.86 trillion or 1.3 per cent of the GDP in 2019 from N1.95trn projected for 2018.

“This reduction is in line with our plan to progressively reduce deficit and borrowings over the medium term,” he said.