President Muhammadu Buhari has formally presented a N7.28 trillion federal government budget titled, ‘Budget of Recovery and Growth’ to the joint session of the National Assembly for approval on Wednesday (today).
The president Buhari said the budget was higher than the N6.07 trillion of 2016 Appropriation Budget by about 19.95 per cent. However, the details of the proposed budget showed that it was based on crude oil benchmark price of $42.5 per barrel against the benchmark price of $38 per barrel used in the 2016 budget.
The estimate of Daily Crude Oil production was put at about 2.2 million barrels per day while the exchange rate was put at N305 to the dollar as against N197 to the dollar in 2016.
Further details of the proposed budget showed that government proposed to spend about N2.243 trillion on capital projects, N2.9 trillion as recurrent expenditure and 15.44 and 9.43 per cent respectively on proposed capital and recurrent expenditures.
About N1.66 trillion has been allocated for servicing of domestic debts, for which N1.3 trillion earmarked in the 2016 budget, with foreign debt expected to take about N175.9 billion as against N54.5 billion last year.