REVIEW OF THE 2018 FEDERAL APPROPRIATION BILL AND ESTIMATES

EXECUTIVE SUMMARY

Part 1 is the introductory part and reviews the positive developments, challenges and concerns. It examines the anchor and policy framework for the budget, the missing development indicators and the failure of the executive to produce the evaluation of the results of programmes financed with budgetary resources in 2017.

Part 2 reviews the key assumptions and the macroeconomic framework. It notes that the benchmark price of oil is realistic but can be slightly increased to gain more revenue and to reduce the deficit. The oil production volume should be based on realistic estimates considering our membership of OPEC. The non-oil revenue projections should be based on the actuals of the previous year. Capital expenditure estimates should be based on a realistic revenue profile; the resources should not be too thinly spread on so many projects whilst NASS and the executive should consider reforms that will relieve the Treasury of the immense funding demand for capital projects through alternative funding sources. Debt service is to consume 23.22% of the overall budget and it is 33.81% of the retained revenue. The recurrent non debt expenditure is on the increase and needs to be properly scrutinized. Also, the proposals contain a lot of frivolous, inappropriate, unclear and wasteful expenditure which should be trimmed before passage by NASS.

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REVIEW OF THE 2018 FEDERAL APPROPRIATION BILL AND ESTIMATES

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