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| Minister of Budget and National Planning, Senator Udoma Udo Udoma |
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.
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