More Revenue Expected From Nigerian Non-oil Sector – Buhari
By Isiaka Wakili
Nigeria Daily Trust
Dec 23 2015 5:05AM
The Federal Government is targeting more revenue from the non-oil sector than oil revenue in the coming year, President Muhammadu Buhari announced yesterday.
Buhari said while presenting next year’s budget proposal of N6.08 trillion to a joint session of the National Assembly that with a revenue projection of N3.86 trillion resulting in a deficit of N2.22 trillion, non oil sector non-oil revenues comprising Company Income Tax (CIT), Value Added Tax (VAT), Customs and Excise duties, and Federation Account levies, would contribute N1.45 trillion while oil-related revenue is expected to contribute N820 billion.
The deficit, which is equivalent to 2.16% of Nigeria’s GDP, will take the country’s overall debt profile to 14% of the GDP.
“This remains well within acceptable fiscal limits”, the president said. He added that by enforcing strict compliance with the Fiscal Responsibility Act 2007 and public expenditure reforms in all ministries, departments and agencies, his government had projected up to N1.51 trillion from independent revenues.
Buhari said his government had focused on non-oil revenues by broadening the tax base and improving the effectiveness of revenue collecting agencies.
He said with the full implementation of the Treasury Single Account (TSA), significant improvements in the collection and remittance of independent revenues were expected.
He said in order to further support the drive for increased remittances, the government would ensure that all MDAs present their budgets in advance and remit their operating surpluses as required by section 22 of the Fiscal Responsibility Act. The president said in addition to the proper linkage of budgeting to strategic planning, the government was enhancing the utilisation of the Government Integrated Financial Management Information Systems (GIFMIS) to improve financial management.
The president said the budget deficit would be financed by a combination of domestic borrowing of N984 billion and foreign borrowing of N900 billion totalling N1.84 trillion.
Buhari also said 2016 borrowings would be principally directed to fund capital projects.
He said N113 billion would be set aside for a Sinking Fund towards the retirement of maturing loans; while N1.36 trillion has been provided for foreign and domestic debt service. Buhari noted that this called for prudent management of both the debt portfolio and the deployment of hard earned foreign exchange earnings.
He said over the medium term, his government expected to increase revenues and reduce overheads to bring the fiscal deficit down to 1.3% of GDP by 2018.
Read more at http://www.dailytrust.com.ng/news/general/more-revenue-expected-from-non-oil-sector-buhari/125713.html#x7q2DDMRbUD06cY6.99
Nigeria Daily Trust
Dec 23 2015 5:05AM
The Federal Government is targeting more revenue from the non-oil sector than oil revenue in the coming year, President Muhammadu Buhari announced yesterday.
Buhari said while presenting next year’s budget proposal of N6.08 trillion to a joint session of the National Assembly that with a revenue projection of N3.86 trillion resulting in a deficit of N2.22 trillion, non oil sector non-oil revenues comprising Company Income Tax (CIT), Value Added Tax (VAT), Customs and Excise duties, and Federation Account levies, would contribute N1.45 trillion while oil-related revenue is expected to contribute N820 billion.
The deficit, which is equivalent to 2.16% of Nigeria’s GDP, will take the country’s overall debt profile to 14% of the GDP.
“This remains well within acceptable fiscal limits”, the president said. He added that by enforcing strict compliance with the Fiscal Responsibility Act 2007 and public expenditure reforms in all ministries, departments and agencies, his government had projected up to N1.51 trillion from independent revenues.
Buhari said his government had focused on non-oil revenues by broadening the tax base and improving the effectiveness of revenue collecting agencies.
He said with the full implementation of the Treasury Single Account (TSA), significant improvements in the collection and remittance of independent revenues were expected.
He said in order to further support the drive for increased remittances, the government would ensure that all MDAs present their budgets in advance and remit their operating surpluses as required by section 22 of the Fiscal Responsibility Act. The president said in addition to the proper linkage of budgeting to strategic planning, the government was enhancing the utilisation of the Government Integrated Financial Management Information Systems (GIFMIS) to improve financial management.
The president said the budget deficit would be financed by a combination of domestic borrowing of N984 billion and foreign borrowing of N900 billion totalling N1.84 trillion.
Buhari also said 2016 borrowings would be principally directed to fund capital projects.
He said N113 billion would be set aside for a Sinking Fund towards the retirement of maturing loans; while N1.36 trillion has been provided for foreign and domestic debt service. Buhari noted that this called for prudent management of both the debt portfolio and the deployment of hard earned foreign exchange earnings.
He said over the medium term, his government expected to increase revenues and reduce overheads to bring the fiscal deficit down to 1.3% of GDP by 2018.
Read more at http://www.dailytrust.com.ng/news/general/more-revenue-expected-from-non-oil-sector-buhari/125713.html#x7q2DDMRbUD06cY6.99
No comments:
Post a Comment