The Federal Government plans a N7.29 trillion budget for next year, it was learnt yesterday.
Besides, it would explore new sources of revenue during the 2017 fiscal year as part of the government’s plan to fund the 2017 budget as well as get the country out of economic recession.
The 2017 budget, which was initially pegged at N6.6866 trillion as contained in the Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), was revised upward to N7.298 trillion.
In 2016, the government submitted N6.059 proposed budget to the National Assembly, which eventually raised it to N6.08 trillion.
He said the Federal Government would issue new oil licences as part of efforts to explore new streams of revenues to fund the 2017 budget.
He 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.
Minister of Budget and National Planning Senator Udoma Udo Udoma stated this when he appeared before a joint committee of the Senate on Appropriation and Finance to defend the revised Medium Term Expenditure Framework (MTEF) and the Fiscal Strategy Paper (FSP).
Udoma told the committee that the Federal Government will issue new oil licences, review the subsisting joint venture with oil companies, review marginal oil fields and mount pressure on revenue generating agencies to raise funds to finance the 2017 budget.
Udoma said the Federal Government pegged oil benchmark at $42.50.
The benchmark of oil was $38 per barrel in the 2016 budget.
The government retained the daily oil production volume for 2017 at 2.2 million barrels per day.
The exchange rate was pegged at N305 to one dollar.
The exchange rate was N197 to one dollar in 2016.
Udoma also told the committee that the Federal Government will be targeting N10 trillion as total revenue during the 2017 fiscal year.
He noted that of the amount, about N5 trillion is expected to be generated from crude oil sales.
He said that the government expected to raise from non-oil sector about N5.06 trillion.
According to him, the revenues are expected to come from corporate and company taxes, Nigeria Liquefied Natural Gas, Stamp Duties, capital gains tax, value added tax, Customs, excise, fees, surcharges on luxury items, special levies and Federal Government independent revenue.
The Federal Government earmarked N1.488 trillion for servicing domestic debts.
In 2016 budget, the Federal Government voted N1.307 trillion for domestic debt service.
The Federal Government said that N175.882 billion will be spent on foreign debt services.
The government spent N54.480 on foreign debt servicing in the 2016 budget.
Government budgeted N2.058 trillion for capital expenditure.
In 2016, N1.587 was budgeted for capital expenditure.
The government said recurrent expenditures will take N1.866 trillion.