The federal government says it
will propose a sum of N9.79 trillion to the national assembly as total
expenditure in the 2020 budget.
The amount which represents an
increase of 9.75 percent over N8.916 trillion spending for 2019, is based on
the projection of a proposed revenue of about N7.64 trillion and a total
proposed fiscal deficit component of about N2.142 trillion.
Zainab Ahmed, minister of
finance, budget and national planning, disclosed this in Abuja at a public
consultation forum with civil society groups and agencies on the draft
2020-2022 medium term expenditure framework (MTEF), on Tuesday.
She said the budget will be proposed
based on the assumption of an oil production capacity of 2.18 million barrels
per day, crude oil price of $55 per barrel, against $60 per barrel last year,
and exchanged rate of N305 to the dollar.
The minister of finance said debt
service is projected to increase from N2.14 trillion in 2019 to about N2.45
trillion; statutory transfer of N526.46 billion, from N502.1 billion in 2019,
and sinking fund of N296 billion, from N110 billion.
She also said recurrent non-debt
appropriation was put at about N4.57 trillion against N4.39 trillion in the
2019 budget.
She added that inflation rate for
the year is projected at an average of 10.81 percent, with nominal consumption
figure of about N122.75 trillion and nominal gross domestic product of N142.96
trillion. The GDP growth rate is put at about 2.93 percent.
Ahmed said a breakdown of the
non-debt proposal includes ministries, departments and agencies (MDAs)
personnel cost of N2.675 trillion; government-owned enterprises (GOEs)
personnel costs (N218.8 billion); overheads for MDAs (N280.3 billion);
overheads of GOEs (N146.14 billion).
She provided details of the
capital expenditure to include capital supplementation (N234.2 billion);
statutory transfers for capital expenditure (N289.1 billion); capital
allocation for special intervention programme (N150 billion); MDAs capital
expenditure (N827.3 billion).
On the issue of deficit financing
for the 2020 budget, Ahmed said the government plans to mobilise additional
financing from the sale of government property, proceeds from privatisation,
sale of non-oil assets, multi-lateral and bilateral project-tied loans and new
foreign and domestic borrowings.
She said the draft MTEF showed
the country was facing significant medium-term fiscal challenges, including
revenue generation and rapid growth in personnel costs.
The minister said the federal
government will implement key reforms under the strategic revenue growth
initiative to boost revenue collection and expenditure management.
She said the government has taken
steps to block leakages in the system, through an October deadline given by President
Muhammadu Buhari for all MDAs to implement the Integrated Personnel Payroll
System (IPPIS).
Ahmed added that workers in MDAs
that fail to move to the IPPIS platform may not be paid their salaries from
October.
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