By Adedapo Adesanya
President Muhammadu Buhari today presented the 2021 budget estimate to a joint session of the National Assembly.
Mr Buhari said the 2021 budget is titled Economic Recovery and Resilience with the aim of promoting economic diversity and enhancing social inclusion.
The proposed total expenditure is put at N13.08 trillion with a crude oil benchmark price of $40 per barrel and a daily oil production estimate of 1.86 million barrels (inclusive of condensates of 300,000 to 400,000 barrels per day) while the inflation rate was projected at 11.95 per cent and GDP growth rate of 3.00 per cent was considered.
Oil revenue is projected at N2.01 trillion for the year while non-oil revenue is estimated at N1.49 trillion.
The document noted N1.35 trillion in spending by Government Owned Enterprises and Grants and Aid funded expenditure of N354.85 billion.
It put recurrent expenditure at N5.65 trillion, personnel cost at N3.76 trillion and debt service at N3.12 trillion.
Statutory transfers were pegged at N484.4 billion while pension, gratuities and retirees benefits will gulp N501.19 billion and overhead cost is expected to take N625.50 billion.
In terms of revenue, total federally distributable revenue is estimated at N8.4 trillion in 2021. Total revenue available to fund the 2021 federal budget is estimated at N7.89 trillion. This includes grants and aids of N354.85 billion as well as the revenues of 60 Government-Owned Enterprises.
The deficit, according to the President, will be financed mainly by new borrowings totalling N4.28 trillion, N205.15 billion from Privatisation Proceeds and N709.69 billion in drawdowns on multilateral and bilateral loans secured for specific projects and programmes.
The administration budgeted N128 billion for the National Assembly and N63.5 billion for the Niger Delta Development Commission (NDDC).
Other allocations include N29.7 billion for the North East Development Commission (NEDC), N110 billion for the Nigerian Judicial Council, N70.05 billion for Universal Basic Education Commission (UBEC) and N40 billion for the Independent National Electoral Commission (INEC).
Others are the Public Complaints Commission, N5.20 billion; Human Rights Commission, N3 billion; and Basic Health Care Provision Fund – N35.03 billion,
President Buhari also said in compliance with the Fiscal Responsibility Act 2007, all beneficiaries of Statutory Transfers will be required 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 details of the budget for consideration and passage.
Dipo Olowookere