The Federal Government announced on Monday that parts of the recovered looted funds will be used to cover a part of the finance plan for 2017. Senator Udoma Udo Udoma has confirmed this at the budget breakdown for 2017 in Abuja.
The total amount of budget projected for this year was N5.08tn, and the recovered fund would cover 11% of it. He also said that the government is being tremendously conservative and if there’s more to come, they will use it. However, the FG is aware that recoveries of the stolen funds are not really the most steadfast way to finance the budget as there are lots of legal processes required before the funds can be spent. The funds that have already been quoted in the budget plan is what the government wishes to spend.
The senator also stated that the total revenue anticipated had exceeded the projection back in 2016 by 30.26%. The oil revenue projection this year also reached 41.7% compared to 19% of the previous year. This higher expectation was driven by the Joint Venture Calls higher production and price, cost cutting, the current exchange rate and other oil-related revenues.
He also added that 15.9% will be contributed by Company Income Tax, 4.8% from Value Added Tax, 15.9% from Independent Revenue and 5.2% from other resources. Also, the calculated budget deficit which is now at N2.36tn has remained comparatively low at 2.18% of the Gross Domestic Product (GDP). A greater part of the budget will be covered through borrowings which have been projected at N2.32tn. N1.07tn of this amount is planned to be sourced from the external means while another N1.25tn will be collected domestically. N35bn is expected to be raised from the outright sale of government properties and from the privatization of publicly-owned enterprises.
During the announcement, Udoma also said that in order to meet the projected revenue, the Federal Inland Revenue Service and the Customs had been summoned to improve their efficiency and to widen their reach to achieve the set targets.
Acting President, Prof. Yemi Osinbajo has signed the N7.44tn budget into law on June 12. The projected budget was first presented by President Muhammadu Buhari to the two chambers of the National Assembly on Dec. 14, 2016, an estimate of N7.30tn. It was then increased by lawmakers by N143bn.