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Senate passes 2021 budget, raises it by N505bn

 


The senate has passed the sum of 13.588 trillion as budget for 2021 fiscal year.

 

The budget was increased by N505 billion.

 

The appropriation bill was passed by the senate on Monday after Jibrin Barau, chairman of the committee on appropriation, presented a report.

 

While presenting his report, Barau noted that the COVID-19 pandemic affected all sectors of the economy.


The chairman said the executive arm of government could present a supplementary budget owing to the fact that the country’s crude oil price is on the rise.

 

“That the impact of COVID-19 has affected all facets of life. There is a remarkable increase of Nigeria’s oil price,” the Kano senator said.

 

“In view of increasing oil prices, the executive may wish to submit a supplementary bill to lift the country out of recession.”

 

On October 8, President Mohammadu Buhari presented the 2021 budget of N13.08 trillion to a joint session of the national assembly.

 

The budget is based on an exchange rate benchmark of N379/$ and crude oil production of 1.86 million barrels per day (including 400,000 barrels of condensate) at $40 per barrel.

 

Capital expenditure in the budget is estimated at N2.083 trillion which represents 29 percent of the total budget.

 

It targets three percent GDP growth and 11.95 percent inflation rate


However, with the increase of the total budget size, the capital expenditure is now N4.125 trillion.

 

The sum of N3.324 trillion was earmarked for debt service and the sum of N5.641 trillion was voted for recurrent (non-debt expenditure).

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