The Lead Partner, Deloitte West
Africa, Mr. Yomi Olugbenro, has called on the federal government to
raise the non-oil tax revenue, saying that it will determine the degree
of implementation of the 2017 budget.
He spoke at the Standard Chartered Bank clients engagement forum
themed: “The Nigerian Budget & Fiscal Focus 2017: Overview of
Budget, Economic Recovery & Growth Plan and National Tax Policy”, in
Lagos, saying that current level of non-oil revenue remained low and
unable to galvanise desired developments.
“While there is noticeable alignment between the federal government
budget and the economic recovery & growth plan, full implementation
of capital project is critical to achieving desired developments and
recovery. The current level of revenues remain low and unable to
galvanize desired developments, sustained effort is therefore required
to raise non-oil tax revenue as borrowing comes with attendant costs.
“Debt to GDP ratio appear decent in principle, but low level of
revenues means about 1/3 of revenue is spent on debt servicing. That is a
major concern, especially with our history of waste and application of
borrowings.” We must also curtail the level of recurrent expenditure
currently at 70 per cent and steadily raise capital expenditure to a
minimum of 50 per cent of aggregate expenditure,” he said.
He noted that the 2017 budget is capable of catalysing the
anticipated economic recovery and as envisaged in the Economic Recovery
and Growth Plan, ERGP, adding that alloc