Senate President Bukola Saraki gave a hint of the likely size of next year’s budget during a debate about the 2017 budget implementation report. According to him, the 2018 budget estimates could hit N10 trillion due to the rollover of part of the 2017 budget.
If the implementation of the 2017 budget is going to be 50 per cent, it means we should expect to have a budget of N10 trillion in 2018. I hope the executive takes note of that.
he upper house had recently summoned Minister of Finance Kemi Adeosun and Minister of Budget and Planning Udo Udoma over the slow pace of fund release of the 2017 budget. Adeosun while appearing before the Senate, had stated that 60% of capital votes would be rolled into next year’s budget.
A 50% implementation of the capital budget this year, means the 2018 budget will be significantly larger. Vice President Yemi Osinbanjo signed the N7.4 trillion budget christened Budget for Economic Recovery and Growth into law in June this year. N2.1 trillion was earmarked as capital expenditure, and N5.3 trillion as recurrent expenditure.
Implications of the large budget
Budget sizes rarely reduce in size, but grow bigger each year. 2018 is an election eve and pre election expenses by the Independent National Electoral Commission (INEC) run into billions of Naira. An estimated N10 trillion floating in the financial system could lead to a spike in inflation rates, which could force the Central Bank of Nigeria (CBN) to increase interest rates, and mopping up operations.