President Buhari To Spend N12.66 Trillion In 2021 Budget

 

Nigeria's President Muhammadu Buhari has announced an aggregate expenditure of N12.66 trillion for the 2021 financial year.

 

According to Buhari, 2021 budget would be based on an oil benchmark of $40 per barrel of crude oil.

 

President of the Senate, Ahmad Lawan on Tuesday read on the floor of the Senate, the 2020 – 2021 Medium Term Expenditure Framework and Fiscal Strategy Paper from President Muhammadu Buhari.

 

The document forwarded to the Senate by President Muhammadu Buhari for approval proposed the sum of N12.66trillion as aggregate expenditure for 2021 on a deficit of N5.16 trillion to be financed by total loan packages of N4.28 trillion.

 

It further targeted N481.41billion as statutory transfers, N5.75trillion as recurrent expenditure, N3.33trillion for capital expenditure and N3.12 trillion for debt servicing.

 

The document equally projected $40 as oil price benchmark, 1.86million barrels as oil production per day, N360 to US dollar as exchange rate.

 

In the letter attached to the document, President Buhari said the presentation of the 2021-2023 MTEF/ FSP was to give the lawmakers enough time to perform its important constitutional duty of reviewing the framework.

 

The letter read in part: “It is with pleasure that I forward the 2021 – 2023 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) for the kind consideration and approval of the Distinguished Senate.

 

In a copy of the document sighted by Nigerian Tribune, President Buhari expressed concern on the effect of the rampaging pandemic, Coronavirus on revenue target.

 

But the document revealed that the federal government was determined “to using innovative ways to raise revenues required for financing its expenditures and diversifying its revenue sources thereby increasing the Revenue to GDP ratio. The medium-term target for this remains 15 per cent. ” It noted that “higher revenue collections will enable Government to effectively deliver public services, enhance infrastructure investment and mitigate the health and economic effects of the COVID-19 Pandemic.”

 

The document further revealed that the federal government has seized the initiative to confront the negative effect of parlous revenue generation on capital projects.

 

One of the measures in the fiscal policy is to increase oil revenues, through upfront fiscal deductions by the Nigerian National Petroleum Corporation for federally funded projects.