FG prioritises health, defense, education in 2024 budget

The Federal Government has announced its commitment to prioritize spending in the health, defense, and education sectors in the 2024 budget.

The Minister of Budget and National Planning, Atiku Bagudu, revealed the focus areas in a statement on Thursday, detailing the 2024 budget’s allocation.

President Bola Tinubu had earlier presented a N27.5 trillion budget proposal to the national assembly on Wednesday, emphasizing the administration’s eight priority areas, which include bolstering macroeconomic stability, reducing the fiscal deficit, and enhancing capital expenditure.

Bagudu outlined that the budget includes specific provisions for ministries and agencies within the prioritized sectors, with an estimated national revenue of N18.32 trillion for 2024. This figure represents a significant 66 percent increase from the previous year’s budget.

Oil-related sources are anticipated to contribute N7.94 trillion, accounting for 43.3 percent of the revenue, while non-oil sources are projected at N10.39 trillion.

Bagudu stated, “The government aims to address fiscal challenges and the revenue inflows are influenced by various factors such as the exchange rate, higher oil production projections, and the removal of subsidies.”

He further explained the government’s approach to tackling both global and domestic challenges, as well as fiscal risks arising from economic underperformance and structural issues. The draft 2024 budget is designed to navigate these obstacles.

“To improve revenue generation, the government is reviewing tax and fiscal policies to increase the revenue-to-GDP ratio,” Bagudu elaborated.

“Key strategies include enhancing tax administration and collection efficiency, implementing significant public finance management reforms, and stimulating the economy through regulatory and policy measures to boost domestic value-addition and attract external investment.”

The minister also highlighted the government’s focus on safety nets to protect vulnerable populations.

Bagudu emphasized the importance of the budget’s early passage, aiming for implementation starting January 1, 2024, to achieve macro-fiscal and sectoral objectives.

With a crude oil benchmark price set at $77.96 per barrel and a production target of 1.8 million barrels per day, the budget is directed towards key sectors such as defense, healthcare, education, and infrastructure.

In terms of sectoral allocations, the defense and security sector received N3.25 trillion, which is 11.8 percent of the total budget. Infrastructure projects were allocated N1.32 trillion, making up 4.83 percent of the budget.

The health sector was granted N1.33 trillion, equivalent to 4.8 percent of the federal government’s budget, while the education sector received N2.18 trillion, representing 7.9 percent.

Breaking down the education budget further, the federal ministry of education was allocated N1.27 trillion, the Universal Basic Education Commission (UBEC) received N251.47 billion, and the Tertiary Education Trust Fund (TETFUND) was allotted N700 billion.