President Muhammadu Buhari has presented a budget of N13.08 trillion for the 2021 fiscal year.
Buhari presented the budget to federal legislators on Thursday in Abuja, Nigeria’s capital.
The budget was prepared based on certain assumptions, including $40/barrel oil price benchmark, exchange rate of N379/dollar, projected GDP growth of 3.0 per cent and inflation rate of 11.95 per cent
Based on these assumptions, total federally distributable revenue is estimated to be N8.433 trillion.
Buhari said the budget will be funded by N.7886 trillion, including Grants and Aid of N354.85 billion and revenues of 60 Government Owned Enterprises. Oil and non-oil revenues bare projected to be N2.01 trillion and N1.49 trillion respectively.
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The breakdown of the aggregate expenditure include N5.65 trillion for non-debt recurrent cost; N3.78 trillion for personal cost; N501.19 billion for pension, gratuities and retirees’ benefits; N625.50 billion for overheads; N3.124 trillion for debt service (16.6% increase from 2020);statutory transfers of N484.49 billion; N220 billion on sinking fund.
The projected total available revenue is N7.886 trillion, with a deficit of N5.20 trillion.
The deficit will be financed by new borrowings of N4.28 trillion, including N205.15 billion from proceeds of privatization, drawdowns on multilateral and bilateral loans secured for specific projects and programmes equating to N709.69 billion.
N3.85 trillion is proposed for capital expenditure.
The breakdown include N1.80 trillion for Federal Ministries, Departments and Agencies (MDAs); N745 billion for capital supplementation; N355 billion for Grants and Aid-funded projects; N20 billion for family homes fund; N25 billion for Nigerian Youth Investment Fund; N336 billion for 60 Government Owned Enterprises; N247 billion for capital component of statutory transfers; N710 billion for projects funded by multilateral and bilateral Loans.
Major capital spending allocations are: N198 billion for power; N404 billion for works and housing; N256 billion on transportation; N121 billion on defence; N110 billion on Agriculture and Rural development; N153billion on water resources, N51 billion in Industry, Trade and Investment; N127 billion (65% increase from 2020); N70 billion on Universal Basic Education Commission; N100 billion in Zonal Intervention Projects; N132 billion on health (157% increase from 2020); N64 billion on Niger Delta Development Commission
President Buhari lamented the negative impact of the coronavirus pandemic on the macroeconomic environment, adding that the Real Gross Domestic Product (GDP) growth declined by 6.1% in the second quarter.