Nigeria proposes N12.7 trillion budget for 2021

Adebayo Obajemu

Nigerian government has proposed a N12.7 trillion budget for 2021 to be financed by N4.3 trillion loan, others

This is shown in the government’s 2021 fiscal year, details of its budget call to Ministries, Departments and Agencies (MDAs).

In a circular on the website of the Budget Office of the Federation on Monday, the aggregate revenue available for budget for 2021 is projected at N7.498 trillion while the aggregate expenditure level is projected to be N12.658
trillion.

According to government, these projections, are in line accordance with its 2021-2023 Medium-Term Expenditure Framework and Fiscal Strategy Paper.

The circular, signed by the minister for finance, Zainab Ahmed, started that the key parameters for the 2021-23 fiscal framework were set in line with the global and domestic economic outlook.

She said that the aggregate expenditure is made up of Statutory Transfers of N481.41 billion, Debt Service of N3.124 trillion, Sinking Fund of N220 billion, Recurrent (non-debt) expenditure of N5.746 trillion and Capital expenditure (exclusive of capital in Statutory Transfers) of N3.086 trillion.

Of the capital expenditure, MDAs Capital is N1.485 trillion, the circular said.

Similarly, the Statutory Transfers of N481.41 billion consist of allocations to the National Judicial Council (NJC), Universal Basic Education Commission (UBEC), Niger Delta Development Commission (NDDC), National Assembly (NASS), Independent National Electoral Commission (INEC), National Human Rights Commission (NHRC), Public Complaints Commission (PCC), North East Development Commission (NEDC) and Basic Health Care Provision fund (BHCPF).

“It is expected that these arms of Government and agencies will apply the funds transferred strictly to accomplish the purposes for which they are intended,” the circular noted.

“In compliance with the Fiscal Responsibility Act (2007), all beneficiaries of statutory transfers will be required to provide the BOF periodic reports of the allocation and expenditure of the funds received.”

The N3.124 trillion in respect of Debt Service is made up of N2.183 trillion for Domestic Debt, and N940.89 billion for Foreign Debt. Additionally, N220 billion is provisioned for Sinking Fund to retire maturing loans.

Similarly, the aggregate sum of N3.086 trillion, which excludes capital component of statutory transfers, has been set aside for sundry critical capital expenditure. They include N1.485 trillion for MDAS’ capital expenditure; N234.19 billion for Capital Supplementation; N337.06 billion for Grants and donor funded projects; N20 billion for Special Intervention Programme; N4335.59 billion for GOEs; and N674.11 billion for Multi-lateral and Bi-lateral Project-tied loans.