|HIGHLIGHTS (NGN' Bn)||2016||2015||% Change|
|Independent Revenue & others||1,581.2||599.8||163.6|
|Special Intervention Program||300||-||100|
|Capex % of total expenditure**||31%||12%|
|Macro-Economic Outlook Projections (MTEF)||2016||2015||% Change|
|Real GDP Growth rate (%)||4.4||3.4||-20.5|
|Nominal GDP (N'Trillion)||103||94||9.4|
|Average Exch rate (NGN/$)||197||190||-3.7|
|Inflation rate (%)||9.81||10.2||3.8|
|Growth of non-oil export (%)||16.5||16.5||0|
|Crude oil production (mbpd)||2.2||2.3||-3.4|
|Oil price benchmark ($/barrel)||38||53||-28|
|Budget Deficit (% of GDP)||-2.14||-1.09||0.96|
MTEF is Medium Term Expenditure Framework
- Actual inflation year on year as at April 2016 was 13.7%
- Real GDP growth rate for Q1 2016 was -0.36%
2016 REVENUE GENERATION SPLIT (MTEF)
Highlights of Revenue and Expenditure
- **Total capital expenditure is circa NGN 1.8 trillion which includes NGN156 billion under Statutory Transfers and NGN 86 billion in Debt Service.
- Oil revenue is expected to decline by 50% while non-oil revenue is projected to increase by 26.5%.
- Increase in non-oil tax revenue will come mainly from Company Income Tax and Value Added Tax expected to increase by 33.2% and 14.9% respectively.
- Spending is planned to increase in 2016 (compared to 2015) by about 35% to an aggregate expenditure of N6.06 trillion.
- Non-debt recurrent expenditure for 2016 which represents about 43.7% of the aggregate expenditure is expected to rise by 2% to NGN2.646 trillion. This includes NGN300 billion special intervention fund.
- Capital expenditure is proposed to increase by about 180% to NGN1.58 trillion which constitutes about 30% of total expenditure.
- The ministry of works, power and housing was allocated NGN423 billion or 26.6% of the capital expenditure being the top recipient of capital spending.
- The federal government has earmarked NGN2 billion for the National Job Creation/Graduate Internship scheme.
- The debt service cost is expected to increase by 54.7% (to a record NGN1.475 trillion) accounting for about 24.3% of total expenditure or 38% of revenue notwithstanding a low debt to GDP ratio of circa 13%.
- NGN1.3 trillion and NGN54.5 billion are required to service foreign and domestic debt respectively.
- A sinking fund of 113.4 billion is for the purpose of retiring matured loans.
Capital Expenditure of KeyMinistries (NGN'Bn)
|Works, Power and Housing||423.0||26.6||1490.0|
Tax Proposals in 2016 Budget Speech
- There was no proposal to change tax rates or impose new taxes in 2016.
- The budget speech was silent on the proposals to introduce a National Security Tax and the proposed increase in Tertiary Education Tax.
- Government is however focused on measures to increase the tax base and overall compliance rate in the country.
- Luxury tax is expected to generate NGN15billion but no disclosure of measures to implement.
- It was mentioned that the tax rate for smaller businesses will be reduced.
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