Ahead of the presentation of the 2021 appropriation bill by President Muhammadu Buhari to the National Assembly, the federal government has pegged its revenue projections at N7.89 trillion.
The Honourable Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, who made this disclosure, said that the budgets of 60 government-owned enterprises (GOEs) have been incorporated.
Speaking during the presentation of the proposed 2021 Budget to the Federal Executive Council (FEC), Mrs Ahmed explained that, “These 60 GOEs exclude Nigerian National Petroleum Corporation (NNPC) and the Central Bank of Nigeria (CBN) and the reason being that NNPC is a national oil company.
According to her, internationally, national oil companies are not included in the national budget. Also, CBN is an autonomous body. Only those two are excluded, 60 GOEs included. That is to say, their revenue and all categories of expenditure are now integrated into the budget.
“We have a total aggregate revenue of N7.89 trillion and also an aggregate expenditure of N13.08 trillion for 2021. There is a fiscal deficit of N4.489 trillion. This represents 3.64 per cent, slightly above what is required by the Fiscal Responsibility Act (FRA) of three per cent and also to report that the total capital expenditure that is projected in the budget is 29 per cent of the aggregate expenditure,” she stated.
Making some comparison, Ahmed said: “This is an improvement over the 24 per cent that we had in the 2020 Budget, but slightly below the 30 per cent that we targeted in the economic recovery. Just to clarify that the 1.86 million barrels per day (mbpd) crude oil production include 400,000 condensates.
“So, we have complied with the Organisation of the Petroleum Exporting Countries (OPEC) quota, which is placed at about 1.5 mbpd. So, the 1.46 mbpd is in meeting with the OPEC quota.
“This is important to us because as you report if you just report the 1.86, some members of the OPEC appear to think that we are exceeding OPEC quota, whereas we are reporting oil and condensate,”
Speaking further of revenue performance in the 2020 budget, Ahmed stated that the performance of the government budget for revenue as at July was at 68 per cent.
The performance of expenditure, on the other hand, was 92.3 per cent and that is to say, salaries were fully paid, pensions were paid, debt service was made, as well as transfers classified as statutory.
On what specific influence does COVID-19 have on 2021 Budget, Mrs Ahmed said: “The 2021 Budget has been able to make more provision for human capital development. So, the Ministry of Health, for example, has its provision almost doubled. The Ministry of Education has a significant increase.
“The details of the budget will be provided to the country after Mr President submits the budget which we hope might be on October 8. So, the details will be out. But, what is unique about this is that of the provision for human capital development, especially health is doubled,” she added.