The Senate on Friday passed the N27.5tn ‘Renewed Hope’ Budget for a second reading.
The budget was passed after various deliberations by senators who applauded the president for his good intentions for the country.
The budget was passed and referred to the Committee on Appropriations after being put to a voice vote by the Deputy Senate President, JIBRIN BARAU , who presided over the session.
President BOLA TINUBU had on Wednesday presented to a joint session of the National Assembly the budget which he named, “Budget of Renewed Hope.”
The President pegged the budget deficit for the 2024 fiscal year at N9.18 tn.
President TINUBU said the deficit represents 3.88 percent of Nigeria’s gross domestic product.
The Committee on Appropriations is chaired by Senator SOLOMON ADEOLA.
TINUBU said the N9.18 trillion deficit is lower than the “N13.78 trillion naira deficit recorded in 2023 which represents 6.11 percent of GDP.
The deficit will be financed by new borrowings totaling N7.83tn, N298.49BN from Privatization Proceeds and 1.05 trillion naira drawdown on multilateral and bilateral loans secured for specific development projects.
He added that the administration will limit the inflation rate to 21.4 percent in 2024, saying the tax and fiscal policies are currently being reviewed.
The President said the target is to increase the ratio of revenue to GDP from less than 10 percent currently to 18 percent within the term of this administration.
To fund the budget, the president said the fresh loans would be collected while exploring public-private partnership arrangements to finance critical infrastructure.
Commenting on the budget, Minister of Finance and Coordinating Minister of the Economy, WALE EDUN said the budget of 27 trillion naira is being financed less with deficit now than in the past.