The allocations to key entities, including the National Assembly, judiciary, and Independent National Electoral Commission (INEC), are set to experience a significant increase of 39.66 percent in the 2024 fiscal year, reaching a total of N1.38 trillion. This revelation emerges from an in-depth analysis of the 2024 budget proposal.
According to data extracted from the breakdown and highlights of the 2024 Executive Budget Proposal, the Federal Government has augmented statutory transfers from N985.49 billion in 2023 to N1.38 trillion in 2024.
Statutory transfers, which encompass payments mandated by law to specific government institutions, will constitute 13.45 percent of the total non-debt recurrent expenditure of N10.26 trillion earmarked by the government for 2024.
As of September, the Federal Government has already disbursed N711.36 billion for these transfers, accounting for 15.04 percent of its total non-debt recurrent spending for the period.
The breakdown for statutory transfers in 2024 includes allocations for the National Judicial Council (N165 billion), Niger-Delta Development Commission (N324.85 billion), Universal Basic Education Commission (N251.47 billion), National Assembly (N197.93 billion), Public Complaints Commission (N13.69 billion), Independent National Electoral Commission (N40 billion), National Human Rights Commission (N5 billion), North-East Development Commission (N126.94 billion), Basic Health Care Provision Fund (N125.74 billion), and National Agency For Science And Engineering Infrastructure (N125.74 billion).
Remarkably, the total amount allocated to these agencies surpasses the allocations for health (N1.33 trillion) by 3.76 percent and infrastructure (N1.32 trillion) by 4.55 percent.
The escalation in the cost of servicing these agencies occurs against a backdrop of a challenging macroeconomic environment, marked by citizen hardships and dwindling government revenues. It underscores the persistent challenge of high governance costs in the country.
Finance and Budget Planning Minister, Abubakar Bagudu, acknowledged the government’s concerns about declining revenues and mentioned ongoing reviews of tax and fiscal policies to enhance revenue generation. The target is to increase the revenue-to-GDP ratio from less than 10 percent to 18 percent within the current administration’s term.
Notably, the allocations for the Presidency and the Secretary to the Government of the Federation for salaries and other recurrent expenditures in 2024 will amount to N186.12 billion, reflecting a 6.46 percent decline from the N198.14 billion budgeted for both agencies in 2023.
President Bola Tinubu, during the budget presentation to the National Assembly, disclosed that the government, facing limited resources, plans to explore Public-Private Partnership arrangements to finance critical infrastructure projects. The total budget for 2024 is N27.5 trillion, with a major focus on defense and security, education, and infrastructure.
