By Stella Obi
A peep into the proposed 2021 Federal budget shows a total expenditure of N13.08 trillion as contained in the 2021 to 2023 Medium Term Expenditure Framework and Fiscal Strategy Paper as passed by the House of Representatives.
The 2021 budget is expected to be based on this Framework.
Summary of the 2021 revenue and expenditure framework shows proposed revenue to be N7.89 trillion, which leaves the a budget revenue shortfall of N5.20 trillion. The deficit budget is expected to be funded partly through new loans and other means available to the government which is estimated in the region of N4. 28 trillion (including Foreign and domestic Borrowing)
Daily crude oil Production has been pegged at 1.86mbpd, while the crude oil benchmark price is pegged at USD$40 per barrel Exchange rate N379/US$.
Accordimg to the Medium Term Expenditure Framework and Fiscal Strategy Paper submitted by the President and passed by the NASS, GDP growth rate is -3.00% while Inflation growth rate is 11.95%;
On the aide of expenditure foe the year 2021, the government is expected to make Statutory transfers to the tune of N484.49 billion; while the sum of N3. 12 trillion is set aside for Debt Service.
Other areas where the fovernmwnt intend spending money in the coming year include Sinking Fund N220 billion; Pension, Gratuities & Retirees Benefits -N520.69 billion.
A total sum of N5.67 trillion will go for Recurrent (Non-debt) while N3 .76 trillion will be splashed on Personnel Costs (MDAs + GOES)
On Capital expenditure (exciusive of Transfers), the government hopes to spend -N3.58 trillion. Special Intervention (Recurrent) to gulp N350 billion; while Special intervention (Capital) takes N20 billion.