The Federal Government has plans to increase its revenue to 15 per cent of Gross Domestic Product by 2025.
It revealed this in its National Development Plan 2021-2025, saying it would increase revenue in order to reduce the deficit-to-GDP ratio.
The government said, “Government will finance the plan directly from budgetary provision as approved by the National Assembly. To ensure fiscal sustainability, efforts will be geared towards enhancement of domestic resources mobilisation, especially in enhancing non-oil revenue within the planning period to avoid undue fiscal shock in financing the plan.
“The target is to increase national government revenue up to 15 per cent of GDP at the end of 2025 to reduce the deficit-GDP ratio with the implementation of the recently launched ‘Strategy for Revenue Growth Initiatives’.
“These initiatives focus on optimising the operational and collection efficiency of GOEs (government-owned enterprises), restricting the cost-to-revenue ratio of GOEs to 50 per cent, leveraging on technology and ICT, enhancement of existing and creation of new revenue streams.”
The government said it would continue to borrow and explore other financing sources to finance its deficit within the period.
