… debt servicing projected at 45% of total expenditure
President Bola Tinubu has presented a budget of N27.5 trillion for 2024 to the National Assembly for consideration and approval.
The budget deficit is projected at N9.18 trillion in 2024 or 3.88 percent of GDP and is 45 percent of the expected total revenue.
The deficit will be financed by new borrowings totaling N7.83 trillion, N298.49 billion from Privatization Proceeds, and N1.05 trillion draw down on multilateral and bilateral loans secured for specific development projects.
The Federal Government also adopted a Naira to US Dollar exchange rate of N750 per US Dollar for 2024, with non-debt recurrent expenditure put at N9.92 trillion, while debt service is projected to be N8.25 trillion and capital expenditure is pegged at N8.7 trillion.
Tinubu on the spending proposal, said: “Our primary objective has been to sustain our robust foundation for sustainable economic development. A critical focus of this budget and the medium-term expenditure framework is Nigeria’s commitment to a greener future.
“To improve the effectiveness of our budget performance, the government will focus on ensuring value for money, greater transparency, and accountability. In this regard, we will work more closely with development partners and the private sector.
“To address long-standing issues in the education sector, a more sustainable model of funding tertiary education will be implemented, including the Student Loan Scheme scheduled to become operational by January 2024,” he added.
Further, he said: “A stable macro-economic environment is important to catalyse private investment and accelerate economic growth. We have and shall continue to implement business and investment friendly measures for sustainable growth.
“We expect the economy to grow by a minimum of 3.76 percent, above the forecasted world average. Inflation is expected to moderate to 21.4 percent in 2024, he noted.
Meanwhile, President Tinubu urged Senators and members of the House of Representatives to be guided by the interests of Nigerians while considering the 2024 budget proposals.
