Breaking News: President Muhammadu Buhari Presents N13.08 Trillion 2021 Budget.

President Muhammadu Buhari presents 13.08 trillion naira budget for 2021 to lawmakers on Thursday.

The budget was revised upward by 21% from the revised 2020 spending plan of 10.8 trillion naira.

An aggregate expenditure of N13.08 trillion is proposed for the Federal Government in 2021. This includes N1.35 trillion spending by GovernmentOwned Enterprises and Grants and Aid funded expenditures of N354.85 billion. For 2021, the proposed N13.08 trillion expenditure comprises: a. Non-debt Recurrent Costs of N5.65 trillion; b. Personnel Costs of N3.76 trillion; c. Pensions, Gratuities and Retirees’ Benefits of N501.19 billion; d. Overheads of N625.50 billion; e. Debt Service of N3.124 trillion; f. Statutory Transfers of N484.49 billion; and g. Sinking Fund of N220 billion (to retire certain maturing bonds). Fiscal Balance 50. The 2021 Budget deficit (inclusive of Government Owned Enterprises and project-tied loans), is projected at N5.20 trillion. This represents 3.64 percent.

The MDAs allocation include.

N227.02 billion for the Ministry of Interior; N441.39 billion for the Ministry of Police Affairs; N545.10 billion for Ministry of Education; N840.56 billion for Ministry of Defence; and N380.21 billion for Ministry of Health.

A breakdown of the performance of the 2020 budget shows that On the expenditure side, as at end of July 2020, a total of N5.37 trillion had been spent as against the pro-rated expenditure of N5.82 trillion. Accordingly, the deficit was N3.27 trillion. This represents 66 percent of the revised budgeted deficit for the full year .

As at 15th September 2020 a total of about N1.2 trillion had been released for capital projects. Every Federal MDA has received at least 50 percent of its 2020 capital expenditure budget, in line with my earlier directives.

Parameters & Fiscal Assumptions Underpinning the 2021 Appropriation . The 2021 – 2023 Medium Term Expenditure Framework and Fiscal Strategy Paper set out the parameters for the 2021 Budget, which include: a. Benchmark oil price of 40 US Dollars per barrel; b. Daily oil production estimate of 1.86 million barrels (inclusive of Condensates of 300,000 to 400,000 barrels per day); c. Exchange rate of N379 per US Dollar; and d. GDP growth projected at 3.0 percent and inflation closing at 11.95 percent.

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