Zainab Ahmed, the Minister of Finance, Budget and Planning has said that the proposed 2023 budget of N19.76 trillion is embedded with an N12.43 trillion deficit.
She said this in an interactive session with members of the Senate Committee on Finance and heads of revenue-generating agencies in Abuja on Tuesday.
According to her, the N12.43 trillion deficit is a result of the projected N6 trillion tax and import duty waivers as well as fuel subsidy of over N6 trillion that was retained for the year.
However, in his response, Olamilekan Adeola, the chairman of the Senate Committee on Finance suggested that the N12. 43 trillion deficit be reviewed downwards before the budget is sent to the National Assembly for consideration and approval.
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What the chairman is saying
According to Adeola, the Nigeria Customs Service revise waivers being granted on import duties for some importers and the Federal Inland Revenue Service (FIRS) should also review the tax credit window offered to some companies.
- He said, “The proposed N12.43 trillion deficit for the 2023 budget and N6 Trillion waivers are very disturbing and must be critically reviewed. Many of the beneficiaries of the waivers are not plowing accrued gains made into expected projects as far as infrastructural developments are concerned.
- “The same goes for the tax credit window offered by FIRS to some companies. Billions and trillions of naira can be generated by the government as revenue if such windows are closed against beneficiaries abusing them and invariably provide required money for budget funding with fewer deficits cum borrowings.”
- “The Nigeria Customs Service should help in this direction by critically reviewing waivers being granted on import duties for some importers just as the FIRS should also review the tax credit window offered to some companies without corresponding corporate social services to Nigerians in terms of expected project executions like road construction,” Mr. Adeola added.
