The Minister of Budget and National Planning, Udoma Udoma, has said that the federal government will issue new oil licenses as part of efforts to explore new streams of revenues to find the 2017 budget.
Udoma made this known when he appeared before the Senator Joint Committee on Appropriation and Finance to defend the revised Medium Term expenditure Frame Work (MTEF) and the Fiscal Strategy Paper (FSP).
We said that the federal government would also review the current joint venture arrangements with oil companies marginal oil fields as well as mount pressure on revenue generating agencies to surpass expected targets.
Udoma said a total of N10 trillion was being targeted by the federal government as revenue for the 2017 fiscal year.
According to him, out of the amount, about N5 trillion is expected to be generated from the sale of crude oil.
He said the revenues are expected to come from corporate and company taxes, Nigeria liquefied natural Gas, stamp duties, capital gains tax and value added tax.
Speaking further on the budget projections, Udoma said he knows that N7 trillion seems larger than N6 trillion. In actual dollar term, the 2017 budget is smaller we have had challenges in revenue generation in funding the 201 budget, ‘we are trying to get to the bottom of revenue generating agencies in order to raise more money.
“On Independent revenue, we need to work with the National Assembly. The issue of 80 percent of operating surplus is a problem. We need to work with the National Assembly to review certain clauses of the law. We need to be more imaginative and creative in order to get out of the problem we have with revenue generating agencies.
From the release that MTEF report submitted to the Senate by the budget office indicated that the 20-17 budget which was initially pegged at N6.7 trillion had also been revised upward to N7.3 trillion.
“Out of this, the federal government is expected to expend N1.5 trillion in servicing domestic debts, however, the federal government earmarked N1.3 trillion in the 2016 budget, he said
On the Foreign debt, the federal government would spend N175.9 trillion as against N54.5 billion spent on foreign debt servicing the 2016 budget.
On capital expenditures, the federal government budgeted N2.1 trillion.
Recurrent expenditures would gulp N1.9 trillion, about N1.8 was budgeted for the same purpose in the 2016 appropriation.
Meanwhile, the new figure is coming inspite of claims by the federal government that many ghost workers had been removed from government’s payroll.
The federal government also intends to borrow a total of N2.3 trillion, out of this, N1.5 trillion would be source locally, while N12.1 trillion would be gotten from foreign sources. In the 2016 budget, N1. 2 billion was reportedly borrowed locally, while N635.8 billion was gotten through foreign borrowing.