President Muhammadu Buhari has presented the 2021 budget estimate of N13.08 trillion to a joint session of the National Assembly, which was disclosed during a session with the Senators and Representatives on Thursday morning.
The appropriation bill entitled ‘Budget of Economic Recovery and Resilience’ was proposed with the aim of advancing economic diversity and enhancing social inclusion.
In August, the Ministry of Finance disclosed that the Federal Government is expected to spend about N12.65 trillion ($33.20 billion) as the budgetary expenditure in 2021, which is a 17.2% increase from the N10.8 trillion revised budget.
The 2021 budget has an 11.95% inflation target total aggregate expenditure, with a deficit of N4.48% trillion.
However, the proposed expenditure is put at N13.08 trillion with a crude oil benchmark price of $40 per barrel and daily oil production estimate of 1.86 million barrels (inclusive of condensates of 300,000 to 400,000 barrels per day).
It was also made known that, a major part of the 2021 recurrent cost estimate, is allocated to paying salaries and overheads in MDAs providing these critical public services.
This also includes N1.35 trillion spending by Government Owned Enterprises and Grants and Aid funded expenditure of N354.85 billion.
The budget contains recurrent expenditure of N5.65 trillion, personnel cost of N3.76 trillion and debt service of N3.12 trillion.
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Statutory transfers have been put at N484.4 billion while Pension, Gratuities & Retirees Benefits was estimated to be N501.19 billion and Overhead cost at N625.50 billion, with a projected inflation rate of 11.95 per cent and GDP growth rate of 3.00 per cent.
The President proceeded by saying, ‘To enhance occupational safety, funds have been provided for the provision of Personal Protective Equipment for health workers.’
And also, the sum of N128 billion for the National Assembly and N63.5 billion for the Niger Delta Development Commission.
Based on the preceding fiscal assumptions and parameters, total federally distributable revenue is estimated at N8.433 trillion in 2021. Total revenue available to fund the 2021 Federal Budget is estimated at N7.886 trillion. This however, includes Grants and Aid of N354.85 billion as well as the revenues of 60 Government-Owned Enterprises.
The President stated that, the deficit, will be financed solely by new borrowings totaling N4.28 trillion, N205.15 billion from proceeds of privitisation and N709.69 billion in drawdowns on multilateral and bilateral loans secured for specific projects and programmes.
The Oil revenue is projected at N2.01 trillion, while the non-oil revenue is estimated at N1.49 trillion, and other allocations include N29.7 billion for the North East Development Commission, N110 billion for the Nigerian Judicial Council, N70.05 billion for UBEC and N40 billion for the electoral umpire, INEC.
Other financial allocation goes to Public Complaints Commission – N5.20 billion; Human Rights Commission – N3.00 billion; and Basic Health Care Provision Fund – N35.03 billion.
President Buhari also said in adherence to the Fiscal Responsibility Act 2007, all beneficiaries of Statutory Transfers will be mandated to provide the Budget Office of the Federation with periodic reports on the allocation and expenditure of funds for inclusion in the quarterly Budget Implementation Report.
The lawmakers are expected to receive the Finance Bill which will contain comprehensive details of the budget for final consideration and passage.
Adenike Omosanya
Photo Credits: Premiumtimes and Blueprint
