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.”
