Owing to a deficit of N2.2trillion in the 2016 budget, Federal Government has concluded plans to go into concessioning arrangements with private investors to finance rehabilitation works at the Nnandi Azikiwe International Airport, Abuja.
The concession arrangements will also involve the Murtala Muhammed Airport in Lagos, including federal airports located in Kano and Port Harcourt, Rivers State.
Udo Udoma, Minister of Budget and National Planning, stated this in Abuja, Thursday, while giving a breakdown of the 2016 budget and its implementation strategies.
The total budget of N6.06trillion was signed into law, last week Friday by President Muhammadu Buhari, after the National Assembly and the Executive settled their differences on the budget.
Udoma said the deficit would be financed through fresh borrowings of N1.84trillion, while N386billion recovered from looted funds would also be injected into the economy.
The Federal Government was also looking at implementing the N6.06trillion budget through a projected revenue accrual of N3.855trillion but to be largely sourced through internally generated revenue of N1.51trillion.
Senator Udoma said the projected growth in FGN’s revenue would be derived mainly from non-oil sources such as corporate tax, VAT and dividend from government corporations and independent revenue.
He said, “we have projected corporate taxes of N1.88trillion in 2016 as against N1.42trillion in 2015 and VAT collection of N1.48trillion in 2016 as against that of N1.28trillion in the previous year.”
The Budget and National Planning Minister said Power, Works and Housing Ministry manned by Babatunde Fashola would gulp N456.93 billion for both recurrent and capital expenditures.
Further breakdown by Udoma also indicated that Transportation was allocated N202.34billion, Defence N443.07billion, Interior N513.65billion and Education N403.16billion.
Other recurrent and capital expenditures for the Health sector showed N250.06billion, Agriculture N75.80billion,Solid Minerals N16.73billion,Youth and Sports development N75.79billion and Water Resources N53.30billion.
Udoma noted that the 2016 budget was prepared amidst a 67percent decline in oil prices from mid 2014 to end of 2015.
“The 2016 budget, titled “Budget of Change”, is the first full year budget of this administration, this budget has been prepared against a background of general slowdown in global economic growth and significantly a massive decline in crude oil prices.
“It will be recalled that crude oil exports had hitherto accounted for over 70percent of government revenues and over 90percent of foreign exchange earnings.
“To this end, government will actively support the use of public private partnerships in the development of infrastructure. We are encouraging our ministers to explore concessioning arrangements for airports, major roads and other infrastructure projects.
“As part of our efforts to encourage private sector participation in infrastructure we are working to arrange for the establishment of an infrastructure fund, which we anticipate should be able to raise up to $25billion within three years,“ Udoma added.