Monetary Policy

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The Conduct of Fiscal Policy

Fiscal Policy 2000
The policy objectives of the year 2000 budget were designed to foster growth in the real sector of the economy and maintain macroeconomic stability. The policy thrust of the budget was to achieve low inflation rate, lay solid foundation for private sector-led economic growth, improve education and agricultural production and reduce unemployment. The fiscal policy measures included a low income tax regime, generous tax incentives and relieves. Accordingly, the total budgeted revenue for the year was N1686 billion of which oil revenue was estimated at N1,340 billion, and non-oil revenue, N345.6 billion. The projected expenditures were: capital expenditure, N31.61billion; recurrent expenditure, N341.53 billion; domestic debt service, N100 billion; external debt service, N150 billion. The budgeted deficit was N34.1 billion representing 1.05% of GDP. With the total expenditure by the government estimated at N653.1 billion and projected federal government retained revenue of N548.4 billion, fiscal operations were expected to result in a deficit of N 104.7 billion.

The total federally collected revenue for the year was N1,906.2 billion made up N1,591.7 billion as oil revenue and N314.5 billion non-oil revenue. Revenue accruing to the Federation Account was N1,262.5 billion; and the Federal government retained revenue was N597.3 billion. Total expenditure by the government amounted to N701.1 billion of which N461.6 billion or (65.8%) was recurrent while N239.5 billion was capital expenditure. The fiscal operations resulted in a current account surplus of N135.7 billion representing 3.8% of GDP. However there was an overall deficit of N103.8 billion or 2.9% of GDP which was largely financed by borrowing from the banking system to the tune of N78.7 billion, and the non-bank public, N24.8 billion.