Highlights of President Buhari’s budget presentation to the National Assembly

09 Oct Highlights of President Buhari’s budget presentation to the National Assembly

President Muhammadu Buhari on Thursday presented the N13.08 trillion budget estimates for the 2021 fiscal year, to the joint session of the National Assembly.
With the themed the ‘Budget of Economic Recovery and Resilience’, it was designed to further deliver on the goals of the Economic Sustainability Plan; and expected “ to accelerate the pace of our economic recovery; and to, promote economic diversification, enhance competitiveness and ensure social inclusion.”
The estimate is N2.28trn higher than the 2020 revised budget of N10.805trn.
* Revenue: Total aggregate revenue projection is N7.88trn, with a deficit of N5.20trn. It is predicated on N379 per dollar exchange rate; oil benchmark of $40 barrel per day; and oil production of 1.86 million per day.
Inflation growth rate was projected at 11.95 percent; while Gross Domestic Product growth rate was fixed at 3 percent.
* Expenditure: The total capital expenditure projected in the budget is N3.85trn, representing 29% of the aggregate expenditure.
N5.65trn is for recurrent (Non-Debt) expenditure; N3.76 trillion for personnel costs; and N501.19bn for pensions, gratuities and retirees’ benefits.
Overheads has N625.50 billion; Debt Service N3.124 trillion; Statutory Transfers N484.49 billion; and Sinking Fund N220 billion.

Recession looms? The economy may slide into the second recession in four years due to the declining gross domestic growth.
The economy is currently facing serious challenges, with the macroeconomic environment being significantly disrupted by the coronavirus pandemic.
“Real Gross Domestic Product growth declined by 6.1 percent in the second quarter of 2020, endind the 3-year trend of positive, but modest, real GDP growth recorded since the second quarter of 2017.
* GDP growth is projected to be negative in the third quarter of this year, “as such, our economy may lapse into the second recession in four years, with significant adverse consequences.”
* “We are working assiduously to ensure a rapid recovery in 2021. We remain committed to implementing programmes to lift 100 million Nigerians out of poverty over the next 10 years,” he assured.

Remarks of NASS leaders:
* Senate President, Ahmad Lawan, said the National Assembly was ready pass the 2021 budget proposal before the end of this year to enhance productivity and efficiency in the management and application of the nation’s resources.
* Speaker, House of Representatives, Femi Gbajabiamila, assured that the same dedication and commitment shown last year during the 2020 appropriation process would be exhibited to deliver a good budget on time.