President Bola Ahmed Tinubu has introduced a transformative fiscal policy in Nigeria, seeking parliamentary approval for a proposed spending plan of 43.56 trillion naira (about $29.96 billion). This initiative aims to repeal the current 2024 budget and extend it through December 2025, addressing concerns over overlapping fiscal cycles and improving public finance management.
The proposal is a response to criticism from lawmakers regarding the government’s practice of rolling over capital budgets, which has resulted in confusion, reduced accountability, and eroded public trust. By consolidating capital spending under a single framework, the initiative aims to enhance planning, fiscal discipline, and the execution of capital projects in Africa’s most populous nation.
The budget allocates funds across key sectors: 1.74 trillion naira for statutory transfers, 8.27 trillion naira for debt servicing, 11.27 trillion naira for recurrent expenditures, and a significant 22.28 trillion naira for capital projects. This allocation showcases the administration’s commitment to infrastructure development and economic growth.
President Tinubu highlighted that this reform would eliminate the practice of managing multiple budgets simultaneously, thereby improving fiscal clarity. The proposal is set to be thoroughly examined by both chambers of the National Assembly, demonstrating the government’s commitment to tackling fiscal challenges and fostering economic stability.
The move is part of a broader strategy to enhance fiscal responsibility and ensure that the budget effectively contributes to national development. By resetting the budgeting process to align with a calendar-year cycle, the administration aims to create a more transparent and efficient financial management system.
As discussions unfold in the legislative process, stakeholders are keenly watching its potential impact on Nigeria’s economic trajectory and the effectiveness of its implementation.
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