Why we want to reduce budget deficit, by finance minister Edun… 

In a decisive move towards economic stability and fiscal responsibility, the federal government has explained why it wants to crash the country’s budget deficit from 6.11 percent to 3.88 percent of the Gross Domestic Product (GDP).

The minister of finance and coordinating minister for the economy, Wale Edun has unveiled a comprehensive strategy aimed at reducing the country’s budget deficit while significantly increasing tax revenues.

This ambitious plan, outlined by Edun, marks a pivotal shift from a trend of excessive borrowing to a focus on prudent financial management.

The primary objective of this initiative is to bring down the budget deficit, currently standing at over 6.11 percent of GDP, to a more sustainable level of 3.88 percent of GDP.

Specifically, Edun said that the budget proposals were realistic and practicable.

The budget deficit is projected at N9.18trn or 3.88 percent of GDP which is lower than the N13.78trn deficit recorded in 2023.

In the 2023 budget, the deficit represents 6.11 percent of GDP.