…proposes N12.66trn estimate
The Federal Government has proposed N12.66 trillion as aggregate expenditure for 2021 fiscal year, with a deficit of N5.16 trillion.
The proposed money bill also made provision for the funding of the budget with a projected borrowing amounting to N4.28 trillion.
The FG is also targeting the sum of N205.15 billion from privatisation proceeds to fund the budget.
The proposals are contained in the 2021–2021 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) sent to the Senate for approval by President Muhammadu Buhari.
It projected N481.41 billion as statutory transfers, N5.75 trillion as recurrent expenditure, N3.33 trillion as capital expenditure and N3.12 trillion was proposed for debt servicing.
Some of the parameters and assumptions upon which the proposals are based as contained in the MTEF/ FSP documents acknowledged by the President of the Senate, Ahmad Lawan, are $40 as oil benchmark, 1.86 million barrels as oil production per day; and N360 to one US dollar as exchange rate, among others.
Also included in the proposals are N500 billion intervention fund against COVID-19 pandemic, N52 billion for Public Works Programme, N32.46 billion for Social Intervention Programme , N5 billion as bailout for the aviation sector, N60 billion for maintenance of roads through direct labour across the six geo- political zones etc.
President Buhari in a letter attached to the documents said: “It is with pleasure that I forward the 2021–2023 MTEF/FSP for the kind consideration and approval of the Distinguished Senate.
“Let me seize this opportunity to express my deep gratitude for the cooperation, support and commitment of the leadership and distinguished members of the Senate in our collective efforts to sustain the restoration of the January – December financial year.
“In line with our commitment, we have worked very hard to achieve an earlier submission of the MTEF/FSP. This is to allow the National Assembly enough time to perform its important constitutional duty of reviewing the framework.
“I herewith forward the 2021–2023 MTEF/FSP as the 2021 budget of the Federal Government will be prepared based on the parameters and fiscal assumptions of the approved 2021–2023 MTEF/FSP. I seek the cooperation of the National Assembly for expeditious legislative action on the submission.”