The senate has slashed federal
government’s borrowing in the 2019 budget by N220 billion.
The executive had proposed N1.86
trillion as budget deficit but it was reduced to N1.64 trillion.
The decision to cut the borrowing
in the budget was part of recommendations in a report on the 2019 medium term
expenditure framework (MTEF) and fiscal strategy paper (FSP).
President Muhammadu Buhari had
sent the document to the national assembly in November for consideration.
While presenting a report on
Tuesday, John Enoh, chairman senate committee on finance, said key assumptions
of daily production output of crude oil at 2.3 million barrel per day, USD
$60.0/6 as crude oil benchmark price and N305 to a dollar as the exchange rate
were retained.
“With regard to 2019 fiscal year,
the estimated budget deficit is N1.86 trillion and it will largely be financed
through borrowing as it has been the tradition,” he said.
“The committee recommends the
adoption of N1.64 trillion as the amount for new borrowing to fund the deficit
and advice relevant agencies to continue exploring ways of generating
additional revenues.”
He asked the federal government
to harness the potential of the mines and steel development ministry in terms
of revenue in a bid to minimise the level of borrowing.
On crude oil production, the
committee said “[There should be] continuous effort of all stakeholders in
checkmating the issues of oil facilities vandalism and other vices associated
with such regard.”
“The federal government should
consider reducing the granting waivers and exemptions while ensuring that the
Nigerian Customs Service personnel are at all oil terminals for accountability
and the Federal Inland Revenue Service (FIRS) should consider increasing tax on
luxury goods and services,” the report read.
“Twenty percent operating surplus
to be remitted by government owned Enterprises should be deducted at source.”
The recommendations were adopted
after it was put to a voice vote by Senate President Bukola Saraki.
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