The Federal Government has proposed the 2017 budget worth N6,866,335,052,740 (approx. N6.9 trillion) almost a trillion naira more than 2016 budget.
President Muhammadu Buhari who sent the proposal contained in the 2017 – 2019 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) to the National Assembly on Tuesday, October 4, said the document articulates the government’s economic, social and developmental objectives and the strategies for achieving them.
Inside the document sent to the Senate President, Bukola Saraki and the Speaker of the House of Representatives, Yakubu Dogara, the president also disclosed that it would set up a $25 billion Infrastructural Development Fund as a means of attracting non-budgetary resources to fund its development projects.
The document showed that the country’s debt stock was N16.3 trillion ($61.45 billion) as at June 30, 2016, and that in adherence to the three per cent threshold set out in the Fiscal Responsibility Act 2007, the 2017 fiscal deficit was projected at N2.7 trillion in nominal terms.
Details of 2017 Budget Expenditure
- The sum of N2.6 trillion is for recurrent (non-debt) expenditure,
- N1.8 trillion for capital expenditure;
- N1.6 trillion for debt service and N370 billion for statutory transfers.
- The special intervention programme is allocated N350 billion, a reduction of N150 billion from that of 2016, while N177 billion is allocated for sinking fund to retire maturing loans.
The budget also showed that out of the N2.6 trillion proposed for recurrent (non-debt expenditure), N1.8 trillion is for personnel costs (MDAs).
- Others are N188 billion for CRF pensions;
- N180 billion for overheads;
- N120 billion for SWV pensions;
- N145.7 billion for Service Wide Votes; N65 billion for the Presidential Amnesty Programme and N50 billion for refund to special accounts.
The three-year expenditure framework goes thus; N6, 866,335,052,740 – 2017
N6, 847,573,238,276 – 2018
N7, 117,671,597,899 – 2019
According to the budget framework, aggregate revenue to fund the 2017 budget is expected to increase over the 2016 estimate of N3.855 trillion by about eight per cent or N313billion. Thirty-three percent of the amount is expected from oil sources while the balance is derivable from non-oil sources in consonance with the government’s renewed focus on diversification of its revenue base.