FG to Borrow N4.3trn for 2021 Budget of N12.7trn

July 22, 2020
buhari presents 2019 budget

By Adedapo Adesanya

The federal government is proposing to spend the sum of N12.7 trillion in the 2021 fiscal year and to approve this, it has forwarded it to the Senate.

This was information was contained in the 2021- 2023 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) submitted to the Senate by President Muhammadu Buhari on Tuesday.

From the N12.66 trillion intended to spend next year, the administration of Mr Buhari plans to have the budget deficit of N5.2 trillion financed by N4.3 trillion to be borrowed from both local and international financial markets.

A breakdown showed that N481.4 billion is targeted from statutory transfers, N5.8 trillion as recurrent expenditure, N3.3 trillion for capital expenditure and N3.1 trillion for debt servicing.

The proposal included a crude oil benchmark of $40 per barrel, 1.86 million barrels as oil production per day and N360 to US dollar as exchange rate among others.

It also took into cognizance N500 billion intervention fund against COVID-19 pandemic, N52 billion for Public Works Programme, N32.5 billion for Social Intervention Programme (SIP), N5 billion as a bailout for the aviation sector and N60 billion for maintenance of roads through direct labour across the six geo-political zones.

In addition, the federal government is also targeting the sum of N205.2 billion from privatisation proceeds to fund the budget.

President Buhari in a letter attached to the documents sought the kind consideration and approval of the distinguished Senate the 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,” the letter said.

The President also used the opportunity to seek the confirmation of Mr Chukwuemeka Chukwu as Resident Electoral Commissioner representing Abia State.

Adedapo Adesanya

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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