The 2020 budget deficit has increased to N5.18 trillion
after adjustments were made to revenue projections in line with prevalent
global realities.
The deficit in the previous budget was N2.17 trillion.
On Wednesday N312 billion was slashed from capital projects
in the 2020 budget, representing a 20% cut.
Although the national assembly and judiciary are yet to make
adjustments to their budgets, the 2020 budget at its N10.276 trillion size and
projected revenue of N5.08 trillion has
a 51% deficit of N5.2 trillion.
According to the revised budget documents, new borrowings by
the government was adjusted from N1.59 trillion to N4.43 trillion with
incremental borrowing projected at N2.84 trillion.
In total, the government hopes to raise N5.189 trillion to
fund the 2020 budget.
The projected oil revenue was reviewed downward from N7.67
trillion to N1.44 trillion.
The net non-oil revenue was also projected downward from
N6.442 trillion to N5.84 trillion with corporate tax and value-added tax
expected to contribute N1.822 trillion and N2.164 trillion down from the
original N1.836 and 2.25 trillion respectively.
Zainab Ahmed, the minister of finance, budget and national
planning, had explained that the budget had to be revised because of a drop in
crude oil prices on the back of the COVID-19 pandemic.
The government has already requested for $6.9 billion from
the International Monetary Fund (IMF), World Bank and African Development Bank
(AfDB) to be able to fulfil its responsibilities.
It has also shelved plans to raise $3.3bn from Eurobonds
issuance.
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