Wale Edun, the Minister of Finance and the Coordinating Minister of the Economy, has reaffirmed the federal government’s commitment to shift focus towards reduced borrowing and increased reliance on revenue to fund the 2024 budget.
Following President Bola Tinubu’s signing of the N28 trillion budget, Edun emphasised prompt implementation and highlighted the budget’s primary goal of fostering economic growth during discussions with journalists on Monday.
“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,” Edun said.
“Those who are investors can come out and invest, and even those who rely on the government, such as schoolchildren and the education sector, 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-galvanised, and set for growth.”
Speaking on the issue of finance much further, Edun admitted that sometimes very serious issues create financial shortfalls.
He said, “Sometimes we’ll have critical issues when it comes to the issue of financial shortfalls here.
“The first thing to say is that it’s a lower budget deficit, so it’s a lower financing requirement, and, as a percentage of GDP, the budget deficit is down from 6.1 percent to 3.8 percent,” he said.
“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.”
Edun highlighted that implementing technology and digitalization would secure government revenue from various channels, encompassing government-owned enterprises, and funnel it into the consolidated revenue fund.
“We are bringing order to government borrowing, so ways and means is being eliminated by taking the funding that is required from the market, as opposed to from printing money by the Central Bank,” he said.
“We are very optimistic that not only will this budget be funded adequately, but it will be funded on a timely basis as well.”
Atiku Bagudu, the Minister of Budget and Economic Planning, highlighted that the budget has been structured to align with the president’s key priorities.
“He was very clear with the warning to all ministries, departments, and agencies that everyone will earn his pay in terms of generating revenue and implementing the budget as passed into law. So, this is a game changer,” he reiterated.
“So this is a budget that has increased spending in all priority areas. Between the MDAs and the statutory transfers, we are spending close to N11.4 trillion as capital expenditure, which is about 39 percent of the budget itself. I think this is almost the first in a very long time in our history.”
Addressing concerns over the swift passage of the appropriation bill, Bagudu emphasised, “There was a good understanding about what the challenges are, what the priorities are, and therefore it’s easy to conclude as to what we should do, and that’s what we have done.”
He also highlighted Tinubu’s acknowledgment of the separation of powers, underscoring a substantial boost in funding allocated to the judiciary.
Bagudu emphasised the president’s aim to adequately fund all three arms of government, fostering their collaboration to fulfil the budget’s commitments.
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