The Federal Government has assured that it will rely less on borrowing to fund the 2024 budget, but would do more on revenue generation.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun said stated this said the government is desirous of restoring order to borrowing with a view to eliminating ways and means of demand credit facility.
Edun stated this while reacting to the signing of the 2024 budget by President Bola Tinubu.
The Finance Minister explained that the 2024 budget is a lower budget deficit, requiring lower financing requirements.
He said, “as a percentage of GDP, the Nigerian 2024 budget deficit is down from 6.1% to 3.8%.
“So we’re relying less on borrowing and more on revenue and I think you have to take the two together. I think we’re very optimistic about the improvements in revenue that will take place.
“We bringing order to government borrowing, so Ways and Means are being eliminated by taking the funding that is required from the market, as opposed to from printing of money by Central Bank.” The Minister added.
Edun assured that implementation of the budget has already begun emphasising that it is a hopeful budget that will inspire Nigerians and encourage them to believe in the nation’s economy again.
The Minister hinted that the key sector of basic education and humanitarian issues have a lot to benefit from the budget.
“Next is implementation. The N28.8 trillion budget has been signed into law by Mr. President so it’s immediate implementation. It’s a very hopeful budget, one that will inspire Nigerians and encourage them to really… those who are investors to come out and invest and even those who rely on government, such as school children and the education sector, they have a lot to benefit.
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“But overall, the change in this budget is that it is focused on growing the economy. The capital expenditure is larger than the recurrent expenditure; over N10 trillion is going to be the capital expenditure, while recurrent is just about N8.8 trillion. I think that shows the direction of travel, it shows that we can expect an economy rejuvenated, re-galvanized and set for growth” Mr. Edun added.
He disclosed further that the government will apply technology and digitalization to ensure that the revenue accrued to the government from all sources, including from government-owned enterprises, comes into the consolidated revenue fund.
