FG Proposes N13.08tn for 2021 Budget
Finance Minister
The federal government is proposing a budget estimate of N13.08 trillion for the 2021 fiscal year.
The proposal was presented during the Federal Executive Council (FEC) by the Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed.
Ahmed told newsmen that the bdget estimate comprises a capital expenditure of 29 per cent of the total budget as against 24 percent in this year’s budget.
She predicted that the nation’s economy will recover very early in 2021.
According to her, “the total budget proposal that is made for 2021 is to enable us to attain a more inclusive growth and also to achieve the key objectives of government, which include stimulating the economy, creating jobs, enhancing growth and creating infrastructural investment, also promoting manufacturing and local production.
“The budget assumptions that were presented to council today include: Crude oil price benchmark at $40 per barrel; oil production at 1.86 million barrels per day; exchange rate of N379 to $1, GDP growth target of three per cent and inflation rate of 11.95 per cent.
“We do expect that Nigeria’s economy will recover to the path of growth early in 2021. So, the total aggregate revenue that is projected for the 2021 budget is N7.89 trillion and what is unique about the 2021 budget is that we have brought in the budgets of 60 government-owned enterprises. If you recall, in 2020, we brought in 10. Now, we have brought in 60.
“These 60 exclude NNPC and the Central Bank and the reason being that NNPC, a national oil company and international national oil companies are not included in the national budget. Also, the CBN is an autonomous body. Only those two are excluded. Sixty government-owned enterprises are included. That is to say their revenues and all categories of expenditure are now integrated in the budget.
“We have total aggregate revenue of N7.89 trillion and also an aggregate expenditure of N13.08 trillion for 2021. There’s a fiscal deficit of N4.489 trillion. 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. Just to clarify that the 1.86 million barrels per day crude oil production includes 400,000 barrels per day of condensates. So, we have complied with the OPEC (Organisation of Petroleum Exporting Countries) quota, which is placed at about 1.5 million barrels per day. So, the 1.46 million barrels per day is in meeting with the OPEC quota.
“This is important to us because as you report, if you just report the 1.86 million barrels per day, some members of the OPEC appear to think that we are exceeding OPEC quota, whereas we are reporting oil and condensate.”
It is expected that President Muhammadu will next week send the budget proposal to the National Assembly.
The proposal was presented during the Federal Executive Council (FEC) by the Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed.
Ahmed told newsmen that the bdget estimate comprises a capital expenditure of 29 per cent of the total budget as against 24 percent in this year’s budget.
She predicted that the nation’s economy will recover very early in 2021.
According to her, “the total budget proposal that is made for 2021 is to enable us to attain a more inclusive growth and also to achieve the key objectives of government, which include stimulating the economy, creating jobs, enhancing growth and creating infrastructural investment, also promoting manufacturing and local production.
“The budget assumptions that were presented to council today include: Crude oil price benchmark at $40 per barrel; oil production at 1.86 million barrels per day; exchange rate of N379 to $1, GDP growth target of three per cent and inflation rate of 11.95 per cent.
“We do expect that Nigeria’s economy will recover to the path of growth early in 2021. So, the total aggregate revenue that is projected for the 2021 budget is N7.89 trillion and what is unique about the 2021 budget is that we have brought in the budgets of 60 government-owned enterprises. If you recall, in 2020, we brought in 10. Now, we have brought in 60.
“These 60 exclude NNPC and the Central Bank and the reason being that NNPC, a national oil company and international national oil companies are not included in the national budget. Also, the CBN is an autonomous body. Only those two are excluded. Sixty government-owned enterprises are included. That is to say their revenues and all categories of expenditure are now integrated in the budget.
“We have total aggregate revenue of N7.89 trillion and also an aggregate expenditure of N13.08 trillion for 2021. There’s a fiscal deficit of N4.489 trillion. 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. Just to clarify that the 1.86 million barrels per day crude oil production includes 400,000 barrels per day of condensates. So, we have complied with the OPEC (Organisation of Petroleum Exporting Countries) quota, which is placed at about 1.5 million barrels per day. So, the 1.46 million barrels per day is in meeting with the OPEC quota.
“This is important to us because as you report, if you just report the 1.86 million barrels per day, some members of the OPEC appear to think that we are exceeding OPEC quota, whereas we are reporting oil and condensate.”
It is expected that President Muhammadu will next week send the budget proposal to the National Assembly.
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