The fiscal plan for next year was smaller in size compared to this year's 9.12 trillion naira budget as the president on the last lap of his second term laid out a plan to drive growth few months to the critical election where he is seeking a second term.
The proposed budget shows that about a quarter of the sum, 2.14 trillion naira will be spent on debt servicing while capital expenditure is expected to gulp 2.031 trillion naira.
In the budget proposal, the government also intends to spend 4.04 trillion naira on recurrent expenditure and 492.36 billion naira on statutory transfer in the course of 2019 fiscal year.The fiscal policy is predicated on crude production of 2.3 million barrels a day, an oil price of $60 per barrel and an exchange rate of 305 naira to the dollar.
The budget is the fourth Buhari has present to parliament since taking office in 2015 but, unlike the others, did not set record high levels of spending as the government seeks to lower debt.
Nigeria’s economy grew by 1.81 percent in the third quarter of this year, the statistics office said last week. And, in a separate data release days later, it said the inflation rate rose slightly in November to 11.28 percent compared with a year ago.
President Buhari’s handling of the economy - which emerged from its first recession in 25 years this year but remains sluggish - has become a campaign issue.
His closest rival and candidate of the main opposition People's Democratic party (PDP) former vice president Atiku Abubakar, has criticised Buhari’s economic policies and has promised to double the size of the economy to $900 billion by 2025 if elected.
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