Fred Itua, Abuja
The Federal Government is proposing the sum of N12.66 trillion as aggregate expenditure for 2021, and a deficit of N5.16 trillion to be financed by N4.28trillion borrowing from local and international financial markets.
The proposals contained in the 2021- 2023 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) forwarded to the Senate by President Muhamnadu Buhari for approval, targeted N481.41billion from statutory transfers, N5.75trillion as recurrent expenditure, N3.33trillion for capital expenditure and N3.12 trillion for debt servicing . Critical parameters and assumptions upon which the proposals are based as contained in the documents acknowledged by President of the Senate , Ahmad Lawan, included a crude oil benchmark of $40, 1.86million barrels as oil production per day and N360 to US dollar as exchange rate among others.Also included in the proposals are a N500billion intervention fund against COVID-19 pandemic, N52billion for Public Works Programme, N32.46billion for Social Intervention Programme, N5billion as bailout for the aviation sector and N60billion for maintenance of roads through direct labour across the six geo- political zones.
Aside its N4.28 trillion, the Federal Government is also targeting the sums of N205.15billion from Privatisation proceeds to fund the budget. President Buhari in a letter attached to the documents sought the kind consideration and approval of the distinguished Senate the collective efforts to sustain the restoration of the January – December financial year.
“In line with our commitment, we have worked very hard to achieve and earlier submission of the MTEF/FSP. This is to allow the National Assembly enough time to perform its important constitutional duty of reviewing the framework.“I herewith forward the 2021 – 2023 MTEF/FSP as the 2021 budget of the Federal Government will be prepared based on the parameters and fiscal assumptions of the approved 2021 – 2023 MTEF/FSP. I seek the cooperation of the National Assembly for expeditious legislative action on the submission.” The upper legislative chamber at the same plenary, also received another request from President Buhari for the confirmation of Dr. Chukwuemeka Chukwu as Resident Electoral Commissioner representing Abia State.