Minister of Budget and National Planning, Udoma Udo
Udoma, says the Federal Government does not have any intention of increasing
taxes or VAT but is working towards increasing its internally generated revenue
through the broadening of its tax base.
Udoma said this at the public hearing of the Joint Session of the National Assembly on the 2017 Budget yesterday when he was responding to concerns raised by Senator Ben Murray Bruce that if the Federal government increased taxes, it will further worsen the economic fortunes of individuals and businesses. According to the Minister
“A view has been
expressed that we should not increase taxes, that we should broaden tax
collection instead, that is precisely what is in the budget. There is no
increase in VAT, there is no increase in company’s income tax, there is no
increase at all in taxes, but people who are not paying taxes must be made to
pay. So the idea is to increase revenue by broadening the tax base, not by
increasing taxes.”
He told the gathering, which also included Civil
Society Organizations and private sector operators, that virtually all the
views expressed by the speakers have been captured in the 2017 Budget.
“The concerns that
have been expressed are reflected in the budget. The need to spend our way out
of recession is reflected in the budget. The need to spend in a way that will
attract private sector spending is also reflected in the budget. Indeed, the
thrust of the budget is to partner with private and development capital to
leverage and catalyse resources for growth.”
According to Udoma, Government realized that public
resources cannot be enough to drive the development process which is why the
2017 Budget is directed at catalyzing private sector resources and using PPP
for a number of projects.
“If you look at
housing we are putting in N100 billion but we are expecting another N900
billion from the private sector. If you look at the EPZ, we are putting in N50
billion but we are expecting a huge injection of funds from the private sector.
So, this budget is aimed at achieving economic growth, aimed at achieving
diversification, aimed at improving our competitiveness, aimed at improving
ease of doing business, aimed at creating more jobs and social inclusion, and
aimed at improving governance and security.”
According to him, the spending is targeted at areas
that have quick transformative potentials such as infrastructure and
agriculture, manufacturing, solid minerals, services and so on. He pointed out
that the present government believes in planning.
“When we came in, we
came out with a document – the Strategic Implementation Plan for the 2016
Budget of Change. We set out short term plans for one year. We started working
on a longer term plan for four years 2017 -2020; and that involved extensive
consultation”.
On partnership with state governments, the Minister
told the audience that the Federal Government has consulted severally with
State governors and with Commissioners of Planning in all the states.
“We are working
closely with the States. We even organized a Retreat in February 2016 with all
the States. In all our initiatives we are working with the States. On
Agriculture we are working with the States; we even have task forces that
involve State governors. So, we are working together with the States.”
Speaking on the Economic Recovery and Growth Plan,
Senator Udoma said government consulted the private sector extensively.
“Indeed, just last
week we met twice with captains of industry and members of the private sector
to sit down and expose the plan to them and get their input. We are going to
Council soon and subsequently the plan will be launched before the end of the
month."
The Minister said because government has bold plans
which are tailored towards pulling the country out of recession, investors are
changing their attitude towards Nigeria.
“People have
heard of our plans; they have seen the plan because we have had extensive
consultations with our development partners – with the World Bank, with IMF,
with UNDP. They have all been exposed to our plan and we have shown them what
we are determined to do, that is why people are believing in Nigeria and
investing in the Eurobond.“
He was emphatic that government
has a clear vision and is on a determined path to get the economy out of
recession. “We are determined thereafter to begin to go back to the path of
growth, a more diversified growth, not depending just on crude oil. We want to
stimulate our manufacturing sector, we want to stimulate agriculture; so we
have a coherent, cohesive plan.”
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