Uche Usim, Abuja
Based on fiscal assumptions and parameters, total federally distributable revenue is estimated at N8.433 trillion in 2021, while total revenue available to fund the 2021 federal budget is estimated at N7.886 trillion, according to President Muhammadu Buhari at a joint session of the National Assembly on Thursday where he presented the 2021 budget.
The money available to fund next year’s budget includes grants and aid of N354.85 billion as well as the revenues of 60 Government-Owned Enterprises (GOEs).
According to the 2021 budget document, oil revenue is projected at N2.01 trillion, while non-oil revenue is estimated at N1.49 trillion.
The 2021 appropriation bill has been modified to include budgeted revenues, regardless of amount, for each MDA, to focus on internal revenue generation.
An aggregate expenditure of N13.08 trillion is proposed for the Federal Government in 2021. This includes N1.35 trillion spending by Government-Owned Enterprises and Grants and Aid funded expenditures of N354.85 billion.
For 2021, the proposed N13.08 trillion expenditure comprises; non-debt recurrent costs of N5.65 trillion; personnel costs of N3.76 trillion; pensions, gratuities and retirees’ benefits of N501.19 billion; overheads of N625.50 billion; debt service of N3.124 trillion; statutory transfers of N484.49 billion; and Sinking Fund of N220 billion (to retire certain maturing bonds).
The 2021 budget deficit (inclusive of Government-Owned Enterprises and project-tied loans), is projected at N5.20 trillion.
Total overhead costs of MDAs and Government Owned Enterprises are
projected to rise to N625.50 billion in 2021, mainly due to the inclusion of the overheads of an additional 50 Government-Owned Enterprises.