President Bola Tinubu has proposed a substantial increase to the 2024 budget, seeking Senate approval for an additional N6.2 trillion injection.
This request, if approved, would raise the total budget from N27.5 trillion to N33.7 trillion.
Capital and Recurrent Expenditure
In a letter read by Senate President Godswill Akpabio during Wednesday’s plenary session, President Tinubu outlined the specifics of the request.
He seeks to withdraw N3.2 trillion from the Consolidated Revenue Fund for capital expenditures. Additionally, he proposes another withdrawal of N3 trillion from the same fund to cover additional recurrent expenditures for the fiscal year ending December 31, 2024.
Amendment to Finance Act of 2023
Alongside the budget increase, President Tinubu also called for an amendment to the Finance Act of 2023.
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The proposed changes would impose a windfall tax on banks and provide guidelines for the administration of this tax. This amendment aims to generate additional revenue to support the increased budget.
Senate Consideration
The Senate has already moved swiftly, listing both requests on its Order Paper as Executive bills for consideration. The expeditious handling indicates the urgency and importance of the proposed budget increase.
Implications
If the Senate approves President Tinubu’s request, the 2024 budget will rise significantly to N33.7 trillion. This increase aims to bolster capital projects and address recurrent expenses, reflecting the administration’s commitment to enhancing infrastructure and maintaining essential services.
The introduction of a windfall tax on banks also signals a strategic move to diversify revenue sources and ensure financial stability.
