President Muhammadu Buhari was accompanied by Vice-President Yemi Osinbajo, some cabinet members and presidential aides, to a joint session of the National Assembly today October 8 where he presented the budget which is tagged ”Budget of Economic Recovery and Resilience”.
The President has presented the 2021 budget proposal of N13.08trillion to the National Assembly for consideration and passage into law.
The proposed budget is predicated on a deficit of N5.15 trillion and will be partly financed by a loan package of N4.28 trillion.
President Buhari said the total revenue available to fund the 2021 federal budget was estimated to N7.886trillion which included grants and aids of N354.85billion as well as revenues of 60 government-owned enterprises.
He told the lawmakers that the budget is based on an estimated oil price benchmark of 40dollars per barrel, daily oil production estimate of 1.86 million barrels (inclusive of condensates of 300,000 to 400,000 barrels per day) and an exchange rate of N379 per dollar.
“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.” President Buhari said
According to the President, oil revenue is projected at N2.01 trillion and non-oil revenue is estimated at N1.49 trillion.
“As you will observe, the format of the 2021 Appropriation Bill has been modified to include budgeted revenues, no matter how small, for each MDA, to focus on internal revenue generation.
Accordingly, I implore you to pay as much attention to the revenue side as you do to the expenditure side.” he said
He stated that N3.12trillion had been earmarked for debt servicing in 2021 as against N2.1trillion in 2020.
Key capital spending allocations in the 2021 Budget include:
a. Power: N198 billion (inclusive of N150 billion for the Power Sector Recovery Plan);
b. Works and Housing: N404 billion;
c. Transportation: N256 billion;
d. Defence: N121 billion;
e. Agriculture and Rural Development: N110 billion;
f. Water Resources: N153 billion;
g. Industry, Trade and Investment: N51 billion;
h. Education: N127 billion;
i. Universal Basic Education Commission: N70 billion;
j. Health: N132 billion;
k. Zonal Intervention Projects: N100 billion; and
l. Niger Delta Development Commission: N64 billion.