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The federal government says it will prioritise the health, defence, and education sectors in its spending in the 2024 fiscal year.
Atiku Bagudu, minister of budget and national planning disclosed this in a statement on Thursday a breakdown of the 2024 budget.
On Wednesday, President Bola Tinubu presented a budget proposal of N27.5 trillion to the national assembly for the fiscal year 2024.
Tinubu said the budget would cement macroeconomic stability, reduce the deficit, and increase capital spending and allocation to reflect the eight priority areas of this administration.
Providing a breakdown of the budget, Bagudu said the allocations include provisions for various ministries and agencies within each sector.
He said the projected national revenue in 2024 is estimated at N18.32 trillion, marking a substantial 66 percent increase compared to the previous year’s budget.
The minister also said oil-related sources are expected to contribute N7.94 trillion (43.3 percent), while non-oil revenue is projected to contribute N10.39 trillion.
“The government aims to address fiscal challenges and the revenue inflows are influenced by various factors such as the exchange rate, higher oil production projections, and the removal of subsidies,” Bagudu said.
“Recognising the global and domestic challenges faced by Nigeria, as well as increased fiscal risks resulting from weaker-than-expected economic performance and structural issues, the draft 2024 budget aims to address these challenges.
“The government intends to improve revenue generation by reviewing tax and fiscal policies, to increase the revenue-to-GDP ratio.
“Key strategies include enhancing tax administration and collection efficiency, implementing significant public finance management reforms, and stimulating the economy through regulatory and policy measures to boost domestic value-addition and attract external investment.
“The government also emphasizes prioritizing safety nets to protect vulnerable segments of the population.”
Bagudu said the early passage of the budget for implementation from January 1, 2024, is paramount and expected to contribute significantly to achieving macro-fiscal and sectoral objectives.
HEALTH, EDUCATION, DEFENCE SECTORS GET BIGGER SHARE
With a crude oil benchmark price of $77.96 per barrel and an output of 1.8 million barrels per day, Bagudu said the budget focuses on critical sectors such as defense, healthcare, education, and infrastructure.
Speaking on sectoral allocations, the minister said N3.25 trillion has been allocated to the defence and security sector, representing 11.8 percent of the national budget.
Out of the N27.5 trillion, N1.32 trillion was earmarked for infrastructure projects, accounting for 4.83 percent of the budget.
Bagudu said the health sector got N1.33 trillion, equivalent to 4.8 percent of the federal government’s budget, while N2.18 trillion (7.9 percent) was given to the education sector.
A further breakdown of the budget for education showed that N1.27 trillion was allocated to the federal ministry of education, the Universal Basic Education Commission (UBEC) received N251.47 billion, while the Tertiary Education Trust fund (TETFUND) got N700 billion.
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