Aformer Deputy Governor of the Central Bank of Nigeria, Mr. Tunde Lemo, has faulted the proposed N8.83 trillion budget for 2019 by President Muhammadu Buhari, describing it as too ambiguous.
Reacting to the budget presentation on a national television programme, Lemo said President Buhari, in the budget, failed to consider factors like disruption during the election period and the issue of subsidy. The ex-CBN boss said, based on the budget presented, there might be a cash flow problem in the country in 2019.
President Buhari had, last Wednesday, presented the 2019 proposal budget to a joint session of the National Assembly.
Buhari, who was accompanied to the National Assembly by Vice President Yemi Osinbajo and members of the Federal Executive Council, unveiled a budget of N8.83 trillion for the 2019 fiscal year.
The 2019 total budget estimate was N300 billion lower than the N9.1 billion being implemented for the current fiscal year. The President said N4.04 trillion or 50.31 per cent was earmarked for recurrent expenditure and N2.03 trillion, representing 22.98 per cent, earmarked for capital projects.
Other estimates are N492.36 billion for statutory transfers; N2.14 trillion for debt servicing and provision of N120 billion as sinking fund.
He explained that the sinking fund would be used to retire maturing bonds to local contractors, and that the 2019 budget proposal was based on an oil production estimate of 2.3 million barrels per day and an exchange rate of N305 to a dollar.
Other benchmarks are: real Gross Domestic Product growth rate of 3.01 per cent and inflation rate of 9.98 per cent.
The total projected revenue, according to the President, was N6.97 trillion, which was three per cent lower than the 2018 estimate of N7.17 trillion.
Buhari said the expected income consisted of oil revenue projected at N3.73 trillion, and non-oil revenue estimated at N1.39 trillion.
“The estimate from non-oil revenue consists of N799.52 billion from company income tax; N229.34 billion from value added tax, and customs duties of N302.5
billion.
“We have reduced our expectations from independent revenue to N624.58 billion. Other revenues expected in 2019 include various recoveries of N203.38 billion; N710 billion as proceeds from the restructuring of government equity in joint ventures, and other sundry incomes of N104.1 billion,” he said.
The President explained that the total N8.83 trillion proposed expenditure for 2019 included grants and donor funds amounting to N209.92 billion.
Buhari said although the 2019 estimate was lower than the 2018 budget of N9.1 trillion, it was higher than the N8.6 trillion originally proposed by the Executive to the National Assembly.
“The budget deficit is projected to decrease to N1.86 trillion or 1.3 per cent of the GDP in 2019 from N1.95 trillion projected for
2018.
“This reduction is in line with our plan to progressively reduce deficit and borrowings over the medium term,” he said.
On sectoral allocation, the President said the Ministry of Interior would get N569.07billion, Defence (N435.62 billion), Education (N462.24 billion) and Health (N315.62 billion).
