Nigeria: President Buhari proposes N12.66 trillion as aggregate expenditure for 2021

The Government of Nigeria has proposed the sum of N12.66 trillion as aggregate expenditure for 2021, and a deficit of N5.16 trillion to be financed by N4.28trillion borrowing from local and international financial markets, according to a news report by The Sun.

The proposals contained in the 2021- 2023 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) forwarded to the Senate by President Muhammad Buhari for approval, targeted N481.41billion from statutory transfers, N5.75trillion as recurrent expenditure, N3.33trillion for capital expenditure and N3.12 trillion for debt servicing .

Critical parameters and assumptions upon which the proposals are based as contained in the documents acknowledged by President of the Senate, Ahmad Lawan, included a crude oil benchmark of USD40, 1.86million barrels as oil production per day, and N360 to US dollar as exchange rate among others.

The proposals also include an N500billion intervention fund against COVID-19 pandemic, N52billion for Public Works Programme, N32.46billion for Social Intervention Programme, N5billion as a bailout for the aviation sector and N60billion for maintenance of roads through direct labor across the six geo-political zones.

Aside from its N4.28 trillion, the Nigeria Government is also targeting the sums of N205.15billion from Privatisation proceeds to fund the budget.

President Buhari in a letter attached to the documents sought the kind consideration and approval of the distinguished Senate the collective efforts to sustain the restoration of the January – December financial year.