We’re borrowing less, relying more on revenue to finance 2024 budget – Wale Edun
The Federal Government says it would rely more on revenue and less on borrowing to finance the 2024 budget.
This was stated by Minister of Finance and Coordinating Minister of the Economy, Wale Edun, while speaking to the media at the State House in Abuja on Monday after President Bola Tinubu signed the N28 trillion 2024 budget into law.
Additionally, Edun called the budget “very hopeful,” saying that it will excite Nigerians and entice businesses to make investments.
According to him, even those who depend on the government, like school children and the education sector, stand to gain much from it.
Speaking about the budget’s emphasis on expanding the economy, the minister said that capital spending will account for more than N10 trillion of the total, while recurrent spending will only total approximately N8.8 trillion.
Edun said, “The N28.8 trillion budget has been signed into law by Mr. President so it’s immediate implementation and it’s a very hopeful budget, one that will really inspire Nigerians and encourage them to really those who are investors to come out and invest and even those who rely on government, such as school children and the education sector, they have a lot to benefit.
“But overall, the change in this budget is that it is focused on growing the economy. The capital expenditure is larger than the recurrent expenditure; over N10 trillion is going to be the capital expenditure, while recurrent is just about N8.8 trillion. I think that shows the direction of travel, it shows that we can expect an economy rejuvenated, re-galvanized and set for growth.”
On the issue of financing, usually our budget will try to plan sometimes we’ll have critical issues when it comes to the issue of financial shortfalls here. And there, as coordinating minister, looking at what you see on the table for this project,
“The first thing to say is that it’s a lower budget deficit, so it’s a lower financing requirement and in fact, as a percentage of GDP, the budget deficit is down from 6.1% to 3.8%. So we’re relying less on borrowing and more on revenue and I think you have to take the two together. I think we’re very optimistic about the improvements in revenue that will take place.”
Additionally, Edun revealed that the FG would be utilising digitalization and technology to make sure that all necessary government revenue—including that from government-owned businesses—enter the consolidated revenue fund and exits on the other side.
“We are bringing order to government borrowing, so Ways and Means are being eliminated by taking the funding that is required from the market, as opposed to from printing of money by the Central Bank.
“That, in a nutshell, is what is happening on the financing side. We are very optimistic that not only will this budget be funded adequately, but it will be funded on a timely basis as well.” He added.
