President Bola Tinubu, has projected a reduction in the projected budget deficit for the 2024 fiscal year, marking a shift from previous years.
Addressing the joint session of the National Assembly during the presentation of the 2024 appropriation bill on Wednesday, he highlighted a notable decline in the deficit, emphasizing Nigeria’s commitment to meeting its debt obligations.
Join our WhatsApp Channel“In 2024, the budget deficit is projected at 9.18 trillion naira or 3.88% of GDP, showcasing a decrease from the 13.78 trillion naira deficit recorded in 2023, representing 6.11% of GDP,” Tinubu declared during his speech.
READ ALSO: 2024 Budget: Tinubu Projects 21.4% Inflation In 2024 Fiscal Year Amidst Economic Reforms
Highlighting the funding sources to bridge this deficit, the President outlined a strategy involving new borrowings totaling 7.83 trillion naira, 298.49 billion naira from Privatization Proceeds, and a drawdown of 1.05 trillion naira from multilateral and bilateral loans earmarked for specific development projects.
Tinubu’s emphasis on responsible debt management and commitment to reducing the deficit comes amidst a backdrop where he has sought National Assembly approval for external borrowings as part of the 2022-2024 external borrowing plan.
His recent request amounts to $8.69 billion and €100 in external loans.
The President’s proposed budget for 2024 stands at N27.5 trillion, envisioning a 3.76% economic growth trajectory and an anticipated moderation of inflation to 21.4%.
“Nigeria remains committed to meeting its debt obligations. Projected debt service is 45% of the expected total revenue,”Tinubu reiterated, emphasizing the nation’s determination to ensure fiscal prudence and responsible financial management in the face of economic challenges.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
