President Muhammadu Buhari has presented the 2021 budget proposal of N13.08trillion to the National Assembly for consideration and passage into law.
He said that the total aggregate revenue projected for the 2021 budget was N7.86 trillion, with a deficit of N5.2 trillion — representing 3.4 per cent of the Gross Domestic product (GDP).
He said the deficit would be financed mainly by new borrowing, totalling N4.28trillion.
Buhari said that the total revenue available to fund the 2021 federal budget was estimated at N7.886 trillion, which included grants and aids of N354.85 billion, as well as revenues from 60 government-owned enterprises.
He said that the budget, which he described as the “Budget for Economic Recovery and Resilience”, was based on an estimated oil price benchmark of 40 U.S. dollars per barrel, with 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 aids of N354.85 billion, as well as the revenues from 60 government-owned enterprises.”
According to him, 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, from each Ministry, Department and Agency (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.
The President said that N3.12 trillion had been earmarked for debt servicing in 2021, as against N2.1trillion in 2020
Buhari, who reviewed the performance of the 2020 budget so far, said that the budget was amended in response to the challenges occasioned by the COVID-19 pandemic.
“As at July 2020, the Federal Government’s actual revenue available for the budget was N2.10 trillion.
“This revenue performance was only 68 percent of our pro-rated target in the revised 2020 budget.
“At N992.45 billion, oil revenue performed well above our budget target, by 168 per cent. Non-oil tax revenues totalled N692.83 billion, which was 73 percent of the revised target,” Buhari said.