Federal Government to Spend N26.1 Trillion in 2024, Debt Servicing Takes N8.25 Trillion
Federal Government has proposed an expenditure of N26.01 trillion for next year, higher that the 2023 budget of N21.83 trillion.
The 2024 proposed budget was approved by the Federal Executive Council at its Monday meeting presided over by President Bola Tinubu at the Presidential Villa, Abuja.
The proposed budget was based on the crude oil price benchmark of $73.96 per barrel, the production of 1.78 million barrels daily, as well as, N700 exchange rate of the naira to a dollar, as well as 21 per cent inflation rate and the GDP growth of 3.7 per cent.
The breakdown of the proposed N26.1 trillion expenditure shows that debt servicing will take N8.25 trillion; pensions and personnel costs N7.78 trillion; non-debt recurrent N10.26 trillion; and statutory transfer of N1.3 trillion.
Budget and National Planning Minister, Atiku Bagudu told the State House Correspondents that President Tinubu would present the proposed budget before the national assembly before the end of the year.
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On the huge debt servicing debt, the minister attributed it on the over N22 trillion way and mean which the Buhari administration used to take loan from the Central Bank of Nigeria (CBN).
Bagudu also said the personnel cost was high because of the financial implications of the petrol subsidy removal’s palliative, including the recent agreement with the organized labour.
The minister also said the 2023 supplementary budget bill would be sent to the national assembly, adding that it would not affect the timely submission of the 2024 proposed budget bill.
“So, Council deliberated, as well as the implication of this and all measures promised in the renewed hope agenda, consumer credits, mortgages, reversed or dismissed institution as well as funding the newly aligned institutional changes, particularly ministries, with specific functions that are able to generate growth that would be better for our country.
“The council members acknowledged the medium term expenditure framework, and it is agreed that we can go ahead to the next step of consultation and presentation to the National Assembly.
“The Medium Term Expenditure Framework is a requirement of the Fiscal Responsibility Act. So, the Fiscal Responsibility Act is for years 2024 to 2026.
