FG Cuts Revenue Projection by N223.36 Billion

• FG Cuts Revenue Projection by N223.36 Billion

The slowdown in business activities and growing economic uncertainty ahead of the national elections may have forced the Federal Government to lower its projected independent revenue from N847.95 billion in 2018 to N624.58 billion in the 2019 fiscal period.

The adjustment represents a decline of N223.36 billion or 26.34 percent from the initial projection.

Independent revenues are funds generated by agencies as stipulated in the Fiscal Responsibility Act of 2007.

The Act mandates government agencies to remit 80 percent of their operating surplus to the Consolidated Revenue Fund account.

The agencies are the Central Bank of Nigeria, Nigeria Deposit Insurance Corporation, Securities and Exchange Commission, Nigeria Shippers Council, Nigeria Export Promotion Council, National Health Insurance Scheme, Nigeria Civil Aviation Authority, and Nigerian Communication Commission.

In the Budget Call Circular signed by the Minister of Budget and National Planning, Udo Udoma, the reasons for reduction in revenue projection are slowing economic activities, which is expected to affect tax revenue during the 2019 fiscal period, the uncertainty surrounding the national elections and weak consumer spending due to low minimum wage were some of the factors highlighted by the minister.

“Ministries are to ensure that government-owned enterprises under their supervision submit their own three-year revenue and expenditure estimates and 2019 budgets,” the document read in part.

“The supervising ministry is required to review and approve the GOEs’ budgets, and then submit same along with the ministry’s own budget to the BOF.”

“These would be screened and revised for consistency with the government’s overall strategic thrust and subsequently presented along with the FGN annual budget to the National Assembly.”

“Pursuant to the Executive Order 002, Heads of Agencies and Chief Executive Officers of GOEs are once again reminded to comply fully with the provisions of the order and are reminded of the punitive measures contained therein.”