Isaac Anumihe, Abuja
The Federal Government, yesterday, proposed N8.6 trillion budget for 2019 fiscal year as against the earlier figure of N9.1 trillion, while envisaging a total revenue of N7.9 trillion.
It also considered reductions in both borrowing and deficit financing going by the provisions contained in 2019- 2021 Medium Term Expenditure Framework(MTEF)/ Fiscal Strategy paper.
The Minister of Budget and National Planning, Senator Udoma Udo Udoma, who made the revelation in Abuja when he addressed newsmen and members of Civil Society Organizations, said the government was not unaware of the revenue challenges in the country.
Going forward, he said, government would prune borrowing drastically and increase revenue substantially.
On the 2019 MTEF, the Minister listed key assumptions which include: oil production volume of 2.3 million barrels per day at an oil price of $60, an exchange rate of N305 to dollar; inflation rate of 9.98 per cent and Gross Domestic Products (GDP) growth rate of 3 per cent.
The Federal Government, he said, projected an oil revenue of N3.6 trillion in 2019 as against N2.9 trillion figure of 2018, and non- oil revenue projection of N1.385 trillion as against N1.348 trillion in 2018 budget.
According to the breakdown of non oil revenues for 2019, government projected Company Income Tax (CIT ) of N799.5 billion as against 2018 figure of N794.6 billion; Value Added Tax (VAT) projection of N229.3 billion as against 2018 figure of N207.5 billion; share of federation account levy at N54.1 billion as against 2018 figure of N57.8 billion.
In the coming year, Udoma said the Federal Government spotted top nine government-owned enterprises , excluding Nigerian National Petroleum Corporation (NNPC), to generate N955.3 billion; N624.5 billion is to be generated from independent revenue sources compared to 2018 figure of N847.9 billion.