By Muhammad Amaan
President Bola Ahmed Tinubu has presented a budget estimate of N27.5 trillion to a joint session of the National Assembly for the 2024 fiscal year, with a projected deficit of N9.18 trillion.
Health Reporters gathered that the health sector was allocated N1.33 trillion, that is 5% of the total budget and far below the Abuja Declaration, of allocating 15% to the health sector.
Presenting the budget tagged, budget of Renewed Hope to the National Assembly on Wednesday, November 29, the president said that the deficit contained in the budget is lower than the N13.7 trillion deficit contained in the 2023 budget.
Tinubu said its main focus was on national defence, internal security, local job creation and macro-economic stability.
He noted that the budget comprised N9.92 trillion non-debt recurrent expenditure and N8.7 trillion capital expenditure, while N8.25 trillion was for debt service.
“Accordingly, an aggregate expenditure of N27.5 trillion is proposed for the Federal Government in 2024, of which the non-debt recurrent expenditure is N9.92 trillion, while debt service is projected to be N8.25 trillion and capital expenditure is N8.7 trillion.
“Nigeria remains committed to meeting its debt obligations. Projected debt service is 45 per cent of the expected total revenue. The budget deficit is projected at N9.18 trillion in 2024, or 3.88 per cent of GDP. This is lower than the N13.78 trillion deficit recorded in 2023, which represented 6.11 per cent of GDP,” Tinubu said.
The president added, “The deficit will be financed by new borrowings totalling N7.83 trillion, N298.49 billion from privatisation proceeds, and N1.05 trillion draw down on multilateral and bilateral loans secured for specific development projects.”
He said the budget would also prioritise investment environment optimisation, human capital development, poverty reduction, and social security.
President Tinubu explained that the nation’s internal security architecture would be overhauled to enhance law enforcement capabilities to safeguard lives, property, and investments across the country.
He said the budget prioritised human capital development, with particular attention given to children because human capital remains the most critical resource for national development.
“To improve the effectiveness of our budget performance, the government will focus on ensuring value for money, greater transparency, and accountability. In this regard, we will work more closely with development partners and the private sector.
“To address long-standing issues in the education sector, a more sustainable model of funding tertiary education will be implemented, including the Student Loan Scheme scheduled to become operational by January 2024.”
On the economy, Tinubu said a stable macro-economic environment was crucial in his administration’s bid to catalyse private investment and accelerate economic growth.
He said the government would continue implementing business and investment-friendly measures for sustainable growth.
