Minister of Budget and National Planning, Senator Udoma Udo Udoma, has explained why the 2019 proposed budget size is smaller than the 2018’s.
He said it was important to contain the size of the deficit and control borrowing.
Udo gave the clarification in a statement by his media aide Akpandem James.
According to the minister, 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 noted that though government has been increasing allocation to infrastructure, but that public-private partnerships were being encouraged.
“Tax incentives are being provided to encourage private sector investment in infrastructure”, the statement read.
“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.