2019 N8.916trn budget: Allocation for Debts more than capital expenditure
.FG to spend N2.254trn for debt services
. N2.094trn for capital expenditure
By Udeme Clement
Apparently, Nigeria’s economy is going to spend more resources in debt services than infrastructure development in 2019 fiscal year, as allocation for debt services is greater than the amount approved for capital expenditure in the budget.
The National Assembly yesterday passed 2019 budget with total expenditure put at N8.916 trillion.
The passage of the budget came through unanimous adoption of the report by the Committee on Appropriations in both chambers.
The budget was passed with a huge sum of N2.254 trillion earmarked for debt services and N2.094 trillion for capital expenditure in 2019 fiscal year.
In the same budget, N433 billion was approved for foreign debts, N110 billion for Sinking Fund and N1.7 trillion earmarked for domestic debts.
A breakdown of the budget shows capital expenditure of N2.094 trillion, N4.055 trillion for recurrent expenditure, statutory transfers of N502 billion, fiscal deficit of N1.908 trillion, special intervention fund of N500 billion, as well as deficit to GDP of 1.37percent.
Accordingly, the budget has Medium Term Expenditure Framework, as well as Fiscal Strategy Paper, MTEF/FSP, of oil price benchmark of $60 per barrel, exchange rate of N305 per Dollar and oil production capacity of 2.3million barrels daily.
The economic implication is that, government will spend more money in servicing debts than infrastructure development to enhance economic growth.