The Minister of Budget and National Planning, Senator Udoma
Udo Udoma has explained how President Muhammadu Buhari plans to stop relying on
borrowing to fund capital projects captured in the national budget.
According to him, concerted efforts are in place to broaden Nigeria’s non-oil
revenues and optimize government spending.
Udoma made this known at a Stakeholders’ Dialogue on the
Implementation of the Economic Recovery and Growth Plan (ERGP) in Abuja.
He said the immediate focus of President Buhari is on
revenue enhancement. According to him, Buhari’s government “must improve its
revenue base so that we do not continue to rely on borrowing to fund our
capital budgets.
“Revenue mobilization is therefore our number one priority.“Our revenue mobilization efforts will involve, amongst other things, introducing measures to increase the independent revenues from our revenue generating agencies.“We will also cut out waste by intensifying our current efforts to plug revenue leakages and inefficiencies in government spending.“The government has also committed itself to exploring options to generate additional revenues by the restructuring and privatisation of carefully selected public enterprises.“But, most importantly, the ERGP states that we will be taking measures to expand our tax to GDP ratio from the current 6% of GDP to at least 15% of GDP. We are already working on these tax review initiatives.
However, it would be recalled that the minister had earlier
maintained that the federal government was not planning to increase
taxes.
Meanwhile, Udoma further stated at the event that the ERGP
indicates that to achieve sustained growth, the country will continue its
current initiatives aimed at driving fiscal stimulus through a package of
spending to stimulate private consumption and investments by businesses.
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“This is why our 2017 Budget proposal has dedicated 30% of the Budget to capital expenditure. We intend to achieve a minimum capital expenditure allocation of 30% in subsequent Budgets throughout the life of the Plan,” he said.
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