Buhari presents proposed 2021 budget to N’Assembly

…Increases NASS allocation, reduces defence ministry’s, earmarks N3.12trn for debt service

· Lawan, Gbajabiamila assures speedy passage

President Muhammadu Buhari Thursday 8th in Abuja presented proposed 2021 Budget of N13 trillion to the Joint Session of the National Assembly.

The President 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 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.

Breakdown of Buhari's N13.08trn 2021 budget proposal

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.

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He stated that N3.12trillion had been earmarked for debt servicing in 2021 as against N2.1trillion in 2020.

However, allocation for the National Assembly has been increased in the 2021 budget by N3 billion when compared to previous years.

The president allocated N128 billion – a rise on the N125 billion budgetary allocation in past years.

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.

l. Niger Delta Development Commission – N64 billion.

The lawmakers are expected to receive the finance bill which will contain details of the budget for consideration and passage.

Presiding officers of the National Assembly, Ahmad Lawan and Femi Gbajabiamila, have pledged to pass the 2021 budget before the end of the year.

The two lawmakers made this known on Thursday in separate remarks after President Buhari presented the 2021 budget estimates.

In his brief welcome address, Lawan expressed the readiness of the parliament to pass the 2021 budget before the end of the year.

“We expect that before the end of the year, the 2020 budget would have been fully implemented,” Lawan says.

He said the passage of the 2020 budget and assent in good time was a clear indication of the smooth working relationship between the executive and legislature.

In his closing remarks, Gbajabiamila also thanked his colleagues for making the budget circle of January – December a reality.

“We promised that we would pass the budget promptly, free of the rancour that had bedevilled the process in time past. We delivered on that promise.”

“I thank my colleagues in the National Assembly for the dedication and commitment they showed last year during the appropriation process,” he said.

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