FG forecasts record N12trn in 2021 fiscal budget

FG forecasts record N12trn in 2021 fiscal budget

The Federal Government (FG), on Tuesday, August 18; revealed it hopes to have a budget expenditure framework projected at N12.658 trillion for the 2021 fiscal year.

This was contained in the latest Economic Outlook by the Ministry of Finance, Budget, and National Planning.

The document, signed by the Minister of Finance, Budget, and National Planning; Ahmed Zainab, indicated that the figure represented a 17.2 percent increase of the revised N10.8 trillion 2020 budget.

According to the FG, the aggregate revenue available for the budget for next year is projected at N7.498 trillion; while the aggregate expenditure level is projected to be N12.658 trillion.

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On the other hand, the aggregate expenditure is made up of Statutory Transfers of N481.41 billion; Debt Service of N3.124 trillion, and Sinking Fund of N220 billion.

Recurrent (non-debt) expenditure is also put at N5.746 trillion and Capital expenditure (exclusive of capital in Statutory Transfers); has N3.086 trillion.

Of the capital expenditure, the Ministries, Department, and Agencies (MDAs) Capital is N1.485 trillion.

The FG explained that the projections were in accordance with the government’s 2021-2023 Medium-Term Expenditure Framework and Fiscal Strategy Paper.

It added that the key parameters for the 2021-23 fiscal framework were set in line with the global; as well as domestic economic outlook.

Meanwhile, 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).

These arms of government and agencies, the ministry said, are expected to apply the funds transferred strictly to accomplish the purposes for which they are intended.

All beneficiaries of statutory transfers were also required to provide the BOF periodic reports of the allocation and expenditure of the funds received, in compliance with the Fiscal Responsibility Act (2007).

“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 the Sinking Fund to retire maturing loans,” the FG explained.

It noted that the aggregate sum of N3.086 trillion, which excludes capital component of statutory transfers, has been set aside for six sundry critical capital expenditures.

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