President Muhammadu Buhari is set to present the budget for the year 2021 to the legislative arms of Nigerian government at a joint sitting of the National Assembly on Thursday, 8th of October, 2020.
The plan was disclosed in a letter addressed to the National Assembly and read by the Senate President, Ahmed Lawan at the Tuesday’s plenary session.
A report by PUNCH shows that the Minister of Finance, Budget and National Planning, Zainab Ahmed, disclosed that the Federal Executive Council, FEC, had last Wednesday approved a budget estimate of N13.08trn for the 2021 fiscal year.
The minister said the budget proposal was predicated on $379 exchange rate, oil benchmark of $40 barrel per day and oil production volume of 1.86 million per day.
PUNCH quoted her as said, “The budget assumptions that were presented to the council include: one, crude oil price benchmark at $40 per barrel; two, oil production at 1.86 million barrels per day; three, exchange rate of N379 to $1; four, Gross Domestic Product growth target of three per cent; and five, inflation rate of 11.95 per cent.
“We have a total aggregate revenue of N7.89tn and also an aggregate expenditure of N13.08tn for 2021. There is a fiscal deficit of N4.49tn, this represents 3.64 per cent, slightly above what is required by the Fiscal Responsibility Act of three per cent and also to report that the total capital expenditure that is projected in the budget is 29 per cent of the aggregate expenditure.
“This is an improvement over the 24 per cent that we had in the 2020 budget, but slightly below the 30 per cent that we targeted in the economic recovery.”