Senate endorses a revised budget of N28.7tn following a third reading, marking a significant increase of N1.2tn.
In a momentous decision, the Senate has given its formal approval to the 2024 budget after a comprehensive third reading. This endorsement comes with a noteworthy adjustment, with the budget seeing an increase from the initially proposed N27.5tn to a revised figure of N28.7tn. The pivotal voice vote was conducted under the guidance of Senate President Godswill Akpabio.
Budget Breakdown and Adjustments
The Senate's approval follows a meticulous consideration of the Appropriation Bill report, skillfully presented by Senator Adeola Solomon, the Chairman of the Appropriation Committee. The revised budget framework outlines specific allocations, with Aggregate Expenditure now set at N28,777,404,073,861. Key components include Statutory Transfers at -1,742,786,788,150, Recurrent Expenditure at 8,768.5330,852, Capital Expenditure at 9,995,143,298,028, and GDP at 3.88%.
Origins and Presidential Proposal
President Bola Tinubu initially presented the 2024 budget, amounting to N27.5tn, on November 29. Notably, the President had projected a deficit of N9.18tn for the fiscal year. This deficit, constituting 3.88% of Nigeria's GDP, represents a strategic reduction from the N13.78tn deficit recorded in 2023, accounting for 6.11% of GDP.
Financing the Deficit
In unveiling the deficit financing plan, President Tinubu emphasized a comprehensive strategy. The deficit of N9.18tn will be funded through a combination of new borrowings totaling N7.83tn, N298.49bn from Privatization Proceeds, and a drawdown of N1.05tn on multilateral and bilateral loans secured for specific development projects.
The Senate's resounding approval not only signifies a crucial step in the financial planning for the upcoming fiscal year but also reflects a commitment to addressing national priorities and advancing essential development projects.
