The Federal Government will focus on revenue generation while reducing expenditure for the 2019 fiscal year.
This was revealed in a statement by the Minister of Budget and National Planning, Udo Udoma, who confirmed the country will opening up new paths for revenue generation while getting more funds from oil revenue.
The minister explained this while presenting the Medium Term Expenditure Framework (MTEF) for 2019-2021 on Thursday which contains details of the planned budget proposal of N8.6 trillion for 2019 as against the N9.12 trillion approved by the National Assembly and signed by the president in 2018.
He also noted that the government will borrow less in 2019 and improve the tax to GDP ratio as well.
He said, “In 2019, we will concentrate on getting more revenue, oil and non-oil, by squeezing the maximum from oil, and build up non-oil revenue by an average of 30 per cent up from the previous figure.
“Here, we all know that the rate of tax to the GDP is still very low. We can do much better than we are doing. So, going forward, we will rely less on borrowing and debt, but do more on revenue build-up so that debt service to revenue is brought down”.
The presidency projects an oil output of 2.3 million barrels per day at the cost of $60 per barrel. It had also made a similar oil production average for 2018.
However, the country’s production has so far hovered between 1.9 and 2.02 million bpd.