Low revenue will constrain the implementation of the 2020 budget, Minister of Finance. Budget and Panning Mrs Zainab Ahmed said on Thursday.
She noted that 44 per cent of projected revenue would come from oil-related sources while the remaining 56 per cent is projected from the non-oil sector.
According to her, because the implementation of the budget will start on January 1, the operation of the 2019 budget has been terminated. There will be no release of capital funding henceforth.
She explained that the government was doing its best to improve the Gross Domestic Product (GDP) growth rate to seven per cent
Mrs Ahmed said: “We have been able to release N1.2 trillion. We will not be making any more releases before the end of the year. We are not doing any more releases. However, there are some in various stages of processing that would be completed. The 2020 budget takes effect from January 1, 2020.”
She noted that in releasing funding for capital projects, priority was given to critical ongoing projects in rail, roads, power and agriculture sectors while debt service and the implementation of non-debt recurrent expenditure, particularly payment of workers’ salaries and pensions will continue.
On the Finance Bill and the requirement of Tax Identification Number (TIN) to operate a bank account, she said not all the provisions of the bill would be implemented from January 1, 2020, adding that the government would engage banks on the modality for implementation of the TIN requirements.
She noted that the projected N8.42 trillion revenue is 3.2 per cent or N263.94 billion over the executive proposal, and 10.9 per cent more than the 2019 Budget of N7.59 trillion) .
To promote fiscal transparency and accountability, the budget of 10 major Government-Owned Enterprises (GOEs) have been integrated in the Federal Government budget with effect from 2020.