President Muhammadu Buhari has presented the 2021 budget estimate to a joint session of the National Assembly.
The proposed expenditure is put at N13.08 trillion with a crude oil benchmark price of $40 per barrel and daily oil production estimate of 1.86 million barrels (inclusive of condensates of 300,000 to 400,000 barrels per day).
This also includes N1.35 trillion spending by Government Owned Enterprises and Grants and Aid funded expenditure of N354.85 billion.
The budget contains recurrent expenditure of N5.65 trillion, personnel cost of N3.76 trillion and debt service of N3.12 trillion.
Statutory transfers has been put at N484.4 billion while Pension, Gratuities & Retirees Benefits was put at N501.19 billion and Overhead cost at N625.50 billion.
A projected inflation rate of 11.95 per cent and GDP growth rate of 3.00 per cent was considered.
The president budgeted N128 billion for the National Assembly and N63.5 billion for the Niger Delta Development Commission.
Based on the foregoing fiscal assumptions and parameters, total federally distributable revenue is estimated at N8.433 trillion in 2021. Total revenue available to fund the 2021 Federal Budget is estimated at N7.886 trillion. This includes Grants and Aid of N354.85 billion as well as the revenues of 60 Government-Owned Enterprises.
The deficit, Mr Buhari said, 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.
Oil revenue is projected at N2.01 trillion. Non-oil revenue is estimated at N1.49 trillion.
Other allocations include N29.7 billion for the North East Development Commission, N110 billion for the Nigerian Judicial Council, N70.05 billion for UBEC and N40 billion for the electoral umpire, INEC.
Mr Buhari said the 2021 budget is titled ‘Economic Recovery and Resilience’ with the aim of promoting economic diversity and enhancing social inclusion.
Others are Public Complaints Commission – N5.20 billion; Human Rights Commission – N3.00 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.