Minister of Finance and Coordinating Minister of the Economy, Wale Edun, says the Federal Government will rely less on borrowing and more on revenue to finance the 2024 budget.
Edun revealed this to newsmen on Monday after the N28 trillion 2024 budget was signed into law by President Bola Ahmed Tinubu.
Speaking on the next move on the budget, the minister said immediate implementation would be carried out.
He added that the budget was focused on growing the economy.
“The N28.8 trillion budget has been signed into law by Mr. President, so it’s immediate implementation and it’s a very hopeful budget.
“Those who are investors can come out and invest and even those who rely on the government, such as school children and the education sector, have a lot to benefit.
“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.
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“I think that shows the direction of travel, it shows that we can expect an economy rejuvenated, re-galvanized and set for growth,” he said.
On the issue of financing, Edun said “sometimes we’ll have critical issues when it comes to the issue of financial shortfalls here.
“The first thing to say is that it’s a lower budget deficit, so it’s a lower financing requirement and, as a percentage of GDP, the budget deficit is down from 6.1% to 3.8%,” he said.
“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.”
On implementation, Edun said technology and digitalisation would be deployed to ensure the revenue that should come to the government from all sources, including government-owned enterprises, which comes into the consolidated revenue fund.
“We are bringing order to government borrowing, so ways and means is being eliminated by taking the funding that is required from the market, as opposed to from printing money by the Central Bank
“We are very optimistic that not only will this budget be funded adequately, but it will be funded on a timely basis as well,” he added.
