Proposed 2019 budget size smaller to contain deficit – Udoma

The Minister of Budget and National Planning, Senator Udoma Udo Udoma, has said the 2019 proposed budget size is smaller than the 2018’s because of the need to contain the size of the deficit so as to keep borrowing within prudent limits.

In a statement issued by his media aide Akpandem James over the weekend, the minister said the proposed deficit of N1.859 trillion in 2019 is about 1.33% of GDP, which is within the 3% threshold stipulated in the Fiscal Responsibility Act (FRA) 2007.

The Minister indicated that even though government has been increasing allocation to infrastructure, government spending alone will be insufficient to address the infrastructure needs of the country hence the reason why Government is encouraging PPPs.

“Tax incentives are being provided to encourage private sector investment in infrastructure. Hence the Executive Order 007 on Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme which was signed by the President on January 25, 2019”.

“The Scheme seeks to leverage private sector capital for the development and refurbishment of road networks in industrial clusters and key economic areas in the country. It entitles private investors to full recovery of the cost incurred on the road project(s) in the form of a Road Infrastructure Tax Credit which can be utilized against participants’ future CIT payable to the Federal Government”, he explained.