The Federal Government has proposed N12.66tn as aggregate expenditure for the 2021 fiscal year on a deficit of N5.16tn.It would be partly financed by a total loan package of N4.28tn while the rest would be from internally generated revenues.
The proposals were contained in the 2021-2023 Medium Term Expenditure Framework and Fiscal Strategy Paper presented to the National Assembly by the President, Muhammadu Buhari on Tuesday.The proposal targets N481.41bn as statutory transfers, N5.75tn as recurrent expenditure, N3.33tn for capital expenditure and N3.12tn for debt servicing.
Other critical parameters and assumptions upon which the proposals are based are $40 as oil price benchmark, 1.86 million barrels as crude oil production per day and N360 to a dollar as exchange rate, among others.Also included in the proposals are N500bn intervention fund against COVID-19 pandemic, N52bn for Public Works Programme, and N32.46bn for Social Intervention Programme.
Others are N5bn as bail out for the aviation sector and N60bn for maintenance of roads through direct labour across the six geopolitical zones.Apart from the N4.28tn targeted from loans, the Federal Government is also proposing N205.15bn as proceeds from the privatisation of federal assets to fund the budget.The Federal Government put inflation rate at 11.95 per cent.
The President, in a letter attached to the documents, said he submitted the proposal early to enable the National Assembly start its work on time so that the executive could present the 2021 national budget soon.Buhari’s letter read, “It is with pleasure that I forward the 2021–2023 Medium Term Expenditure Framework and Fiscal Strategy Paper for the kind consideration and approval of the distinguished senate.
“Let me seize this opportunity to express my deep gratitude for the cooperation, support and commitment of the leadership and distinguished members of the senate in our collective efforts to sustain the restoration of the January – December financial year.”
“In line with our commitment, we have worked very hard to achieve an early submission of the MTEF/FSP. This is to allow the National Assembly enough time to perform its important constitutional duty of reviewing the framework.
“I herewith forward the 2021– 2023 MTEF/FSP as the 2021 budget of the Federal Government will be prepared based on the parameters and fiscal assumptions of the approved 2021–2023 MTEF/FSP.”
He sought the cooperation of the National Assembly for expeditious legislative action on the submission.