(Quick News Africa)- The Federal Government on Monday said it would use a fraction of N558.8 billion from state funds stolen by certain individuals but are now recovered to finance part of the 2017 budget.
Udoma Udo Udoma, the minister of budget and national planning, stated this in Abuja during the public presentation of the 2017 appropriation act.
Yemi Osinbajo, Nigeria’s acting president, signed the N7.44 trillion budget into law on June 12, a month after it was passed by the national assembly.
The total revenue projected for the year is put at N5.08 trillion, with 11 per cent expected to come from recoveries of looted funds.
“On recoveries, we are being extremely conservative, what is in the budget is what we know about already, so if more comes, we will use it,” Udoma maintained.
The minister also observed that recoveries of looted funds are not the most dependable way to finance the budget because of the legal processes that have to be concluded before such monies can be spent.
He however assured that “the money quoted in the budget is the one we have already recovered and in our pocket to spend as we wish.’’
Udoma added that the high revenue expectation from oil was driven by Joint Venture Calls (JVC) cost reduction, higher production, improvements in price, as well as exchange rate and additional oil-related revenues.
According to him, company income tax (CIT) will contribute 15.9 per cent, value added tax (VAT) 4.8 per cent, independent revenue 15.9 per cent and others 5.2 per cent.
He also said the projected budget deficit which stood at N2.36 trillion remained relatively low at 2.18 per cent of the gross domestic product (GDP).
This, the minister noted, is within the 3 per cent threshold stipulated in the Fiscal Responsibility Act (FRA).
“The budget is to be financed mainly by borrowings which have been projected at N2.32 trillion and, of this amount, N1.07 trillion is intended to be sourced externally, while N1.25 trillion will be sourced domestically,’’ he further stated.
Udoma hinted that N35 billion is expected as revenue from the outright sale of government property and privatization of state-owned enterprises.
