..Pegs budget on 40 dollars per barrel Oil Benchmark
President Muhammadu Buhari has announced that the Nigerian Government’s aggregate expenditure for the 2021 financial year is N12.66 trillion
He also said that the 2021 budget would be based on an oil benchmark of $40 per barrel of crude oil.
President of the Senate, Ahmad Lawan on Tuesday read on the floor of the Senate, the 2021 – 2021 Medium Term Expenditure Framework and Fiscal Strategy Paper from President Muhammadu Buhari.
According to the document, the N12.66 trillion include “GOEs’ expenditure of N1.35 trillion and grants/donor-funded programme amounting to N337.06 billion.
The 2021 expenditure estimates, according to the MTEF/FSP document, include the statutory transfer of N481.41 billion, non-debt recurrent expenditure of N5. 75 trillion, including N350 billion for the recurrent component of the Special Intervention Programme.
Debt Service is estimated at N3.12 trillion while N220 billion is for Sinking Fund. Also the sum of N4.31 trillion is provided for personel and pension. N3.33 trillion is for capital expenditure.
Budget deficit is projected at N5.16 trillion to be funded by fresh loan of N4.28 trillion.
In the letter attached to the document, President Buhari said the presentation of the 2021-2023 MTEF/ FSP was to give the lawmakers enough time to perform its important constitutional duty of reviewing the framework.
The letter read in part: “It is with pleasure that I forward the 2021 – 2023 Medium Term Expenditure Framework and Fiscal Strategy Paper (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 and 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.”
President Buhari expressed concern on the effect of the rampaging pandemic, Coronavirus on revenue target.
But the document revealed that the federal government was determined “to using innovative ways to raise revenues required for financing its expenditures and diversifying its revenue sources thereby increasing the Revenue to GDP ratio. The medium-term target for this remains 15 per cent. ”
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It noted that “higher revenue collections will enable Government to effectively deliver public services, enhance infrastructure investment and mitigate the health and economic effects of the COVID-19 Pandemic.”