The federal government yesterday indicated that it was targeting a tighter fiscal plan next year, with a projected budget of N8.65 trillion in 2019.
This was disclosed the minister of budget and national planning, Udo Udoma, during a public consultation on the 2019-2021 Medium Term Fiscal Framework and Strategy in Abuja.
The federal government explained that it would cut the budget from N9.12 trillion in 2018 to N8.65 trillion in 2019. This, it said, is predicated on the need to ensure prudence, reduce deficit and borrowing while laying greater emphasis on revenue drive.
The federal government also said it wanted to reduce the amount of borrowing to finance the nation’s budget deficit in the proposed 2019 fiscal year.
According to the government’s 2019-2021 Medium Term Expenditure Framework (MTEF), the government will cut deficit in the 2019 budget draft from N1.9 trillion in 2018 to N1.6 trillion in 2019.
LEADERSHIP Friday reports that there had been calls on the federal government to reduce its borrowing and pay more attention to internal revenue generation from the non-oil sector. While approving the federal government’s borrowing request on Wednesday, the Nigerian Senate re-emphasised the earlier call by the World Bank and the International Monetary Fund to either halt or slow down its debt accumulation.