As part of measures to retool the economy and hasten the recovery process, the Federal government has proposed allocation of 30% capital expenditure in subsequent budget throughout the life span of the ERGP.
Udoma Udo Udoma, Minister of Budget and National planning disclosed this on Tuesday in Abuja, stating that the 2017 budget proposal has dedicated 30% of the budget to capital expenditure as a tool to hasten the nation’s economic recovery plan.
He said, “We intend to achieve a minimum capital expenditure allocation of 30% in subsequent budget throughout the life of the plan.”
He further explained that the global economic recovery is currently gaining momentum with an improved world outlook for 2017, and beyond. Stating that the IMF/World Bank have projected that Nigeria will be moving back to a positive growth of 0.8% in 2017 as against the target of 2.19% by the end of this year in the ERGP.
According to him, “Our Agricultural sector, one of the key sectors expected to drive growth in our Plan, continues to show growth. These positive results and projections, though modest, are all evidence that our economic policies are the right ones. However, much more needs to be done to sustain and build on this momentum”.
Reaffirming that the Government is determined not just to restore growth, but growth that is diversified; growth that is inclusive; and growth that is sustained in the long term, irrespective of whatever happens to the price of crude oil.
He further explained that Revenue mobilization is the government number one priority as the ERGP indicates effort that introduce measures to increase independent revenues from revenue generating agencies as well as cutting out waste by intensifying current efforts to plug revenue leakages and inefficiencies in government spending.
He said, “The immediate focus of this Government is therefore on revenue enhancement, for the ERGP to achieve its intended results we must be able to mobilize substantial increases in government revenues over the life of the Plan.”
