FG Proposes N13.08trn Budget For 2021

fg-proposes-n13-08trn-budget-for-2021

Minister of Finance, Budget and National Planning, Hajiya Zainab Ahmed in a press statement,

“The Ministry of Finance, Budget and National Planning presented to Council the proposal for the 2021 Budget. Before presenting the proposal, we also presented the performance of 2020 Budget to July 2020.

“Just briefly, the performance of the FGN Bud- get as of July, for revenue, was 68%. We had a 68% revenue performance prorated to July. The performance of expenditure, on the other hand, was 92.3% and that is to say salaries were fully paid, pensions were paid, debt service was made, as well as transfers classified as statutory.

“In presenting the Budget 2020, we had to re- port to the Council some slight changes that need to be made on MTEF 2021/2023, which has sin- ce July been sent to the National Assembly by Mr President.

“Specifically, the exchange rate is going to be changed from 360 that we initially presented and submitted to the Council and to the National As- sembly, up to 379. The reason why this is happening is due to the exchange rate movement that the CBN has put in place.

“Also, there were some slight changes in miscellaneous revenues and signature bonuses after interaction with DPR, which resulted in some increase in revenue.

“The total budget proposal that is made for 2021 is to enable us to attain a more inclusive growth and also to achieve the key objectives of government, which includes stimulating the economy, creating jobs, enhancing growth and creating an infrastructural investment, also promoting manufacturing and local production.

“The budget assumptions that were presented to Council today include crude oil price benchmark at $40 per barrel; oil production at 1.86 million barrels per day; Exchange rate of N379 to US$1; GDP growth target of 3 per cent and inflation rate of 11.95 per cent.

“We do expect that Nigeria's economy will recover to the path of growth early in 2021, so the total aggregate revenue that is projected for the 2021 Budget is N7.89 trillion and what is unique about the 2021 Budget is that we have brought in the budgets of 60 government-owned enterprises. If you recall, in 2020 we brought in 10, now we have brought in 60.

“These 60 exclude NNPC and the Central Bank and the reason being NNPC, a national oil company, inter- nationally national oil companies are not included in the national budget. Also, CBN is an autonomous body.

“Only those two are excluded, 60 government-owned enterprises included. That is to say, their revenue and all categories of expenditure are now integrated into the Budget.

“We have a total aggregate revenue of N7.89 trillion and also an aggregate expenditure of N13.08 trillion for 2021. There's a fiscal deficit of N4.489 trillion, this represents 3.64%, slightly above what is required by the Fiscal Responsibility Act of 3% and also to report that the total capital expenditure that is projected in the Budget is 29% of the aggregate expenditure.

In her response too efforts to curb the pandemic she said “The 2021 budget has been able to make more provision for human capital development. So, the Ministry of Health, for example, has its provision almost doubled.

“The Ministry of Education has a significant increase. The details of the budget will be provided to the country after Mr President submits the budget which we hope might be on the 8th of October.

“So, the details will be out. And following Mr President’s submission, the Ministry of Finance, Bud- get, and National Planning will also engage in a wor- ld press conference to provide the details. But what is unique about this is that the provision for human capital development, especially health is doubled”.