FG projects lower budget deficit 3.9% of GDP next year, says economy expected to grow by at least 3.76%
November 29, 2023
The Federal government has revealed plans to narrow budget deficit to 3.9% of gross domestic product (GDP) next year from about 6.1% this year.
The President Bola Tinubu said this on Wednesday in his speech before the NASS, while presenting the 2024, budget of renewed hope.
According to Tinubu, Budget deficit is projected at 18 trillion naira in 2024 or 3.88 percent of GDP, lower than the 13.78 trillion naira deficit recorded in 2023 which represents 6.11 percent of GDP.
“Our government remains committed to broad-based and shared economic prosperity. We are reviewing social investment programmes to enhance their implementation and effectiveness. In particular, the National Social Safety Net project will be expanded to provide targeted cash transfers to poor and vulnerable households. In addition, efforts will made to graduate existing beneficiaries toward productive activities and employment”.
“We are currently reviewing our tax and fiscal policies. Our target is to increase the ratio of revenue to GDP from less than 10 percent currently to 18 percent within the term of this Administration. Government will make efforts to further contain financial leakages through effective implementation of key public financial management reforms.
The budget presented on Wednesday forecasts 27.5 trillion naira ($34.85 billion) of expenditure in 2024, with spending priorities including security, infrastructure and measures to ease a cost-of-living crisis.
Reporting by: Theresa Igata