The Federal Government on Thursday 18th October, 2018 proposed a smaller budget size of N8.6ttrillion for 2019 in contrast to N9.1ttrillion for 2018.
According to details from the 2019-2021 Medium Term Expenditure Framework unveiled in Abuja by the Minister of Budget and Planning, Senator Udo Udoma, also projected a total revenue of N7.9tn in both borrowing and deficit finance
Senator Udoma further said the government would drastically cut down on borrowing in 2019, as he outlined key assumptions in next year’s proposed budget to include oil production volume of 2.3 million barrels per day at a price of $60 per barrel and an exchange rate of N305 to one dollar; inflation rate of 9.98 per cent; and Gross Domestic Growth rate of three per cent.
According to Senator Udoma, the Federal Government has also projected oil revenue of N3.6tn for 2019 against N2.9tn for the current fiscal year.
For non-oil revenue in 2019, the government has projected Company Income Tax of N799.5bn as against N794.6bn in 2018; Value Added Tax of N229.3bn, against the 2018 figure of N207.5bn.
For the coming year, the Federal Government has picked top nine government-owned enterprises, excluding the Nigerian National Petroleum Corporation, to generate the sum of N955.3bn, while the sum of N624.5bn is expected from independent revenue sources, compared to the 2018 figure of N847.9bn.