President Muhammadu Buhari will sign the revised 2020 budget on Friday and will present the 2021 budget to the national Assembly in September, the Minister of Finance, Budget and National Planning, Dr. Zainab Shamsuna Ahmed said.
The minister disclosed this on Thursday when she met with the leadership of the National Assembly on plans to submit the 2021-2023 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) later this month.
The Minister while briefing principal officers of the Senate and House of Representatives led by the Senate President, Ahmad Lawan, and the Speaker, Femi Gbajabiamila, disclosed that President Muhammadu Buhari had given directives for the Ministry to expedite action on next year’s budget estimates to enable him present the 2021 budget proposal to the National Assembly by the end of September this year.
Mrs. Ahmed further disclosed that in keeping strictly with the January – December budget cycle, the President will tomorrow (Friday) sign into law, the revised N10.8 trillion budget for the year 2020 passed by the National Assembly in June.
“This for us is a journey towards ensuring that the progress that we have made as a collective to return the fiscal year to January – December is maintained for the 2021 budget as well.
The Senate President’s spokesman, Ezrel Tabiowo, in a statement quoted the minister as saying, “The President has directed that we must deliver the budget to the National Assembly by the end of September.”
Ahmed while giving an update on the 2020 budget implementation between January and May 2020, stated that the Federal Government’s retained revenue was N1.48 trillion, an amount representing 56 percent of government’s target.
She added that out of the sum generated as revenue, oil revenues accounted for N701.6 billion; non-oil tax revenues N439.32 billion; Companies Income Tax (CIT) and Value Added Tax (VAT) collections – N213.24bn and N68.09bn; and Customs collection N158bn, respectively.
“Other revenues amounted to N339.51 billion, of which Independent revenues was N80.22bn. Recoveries and Stamp duty collected during the period are yet to be booked in the fiscal accounts,” Ahmed said.
On Expenditure performance for the same period (January – May 2020), she disclosed that N1.25 trillion was expended for debt service; and N1.32 trillion for Personnel cost, including Pensions.
According to the Finance Minister, as at the end of May 2020, only N253.33 billion had been released for capital expenditure.
Ahmed while giving underlying assumptions driving the macro-economic parameters and targets of the 2021 – 2023 Medium Term Expenditure Framework, said same was “revised in line with the emergent realities.”
She stated that the Oil Price Benchmark for the 2021 fiscal year was pegged at USD$35; and USD$40 for 2022 and 2023, respectively.
Oil Production (mbpd) was placed at 1.86 for 2021, 2.09 for 2022, and 2.38 for the 2022 fiscal year; while the Exchange Rate remains at N360 to USD$1.
Earlier, the Senate President in his welcome remarks said, “this meeting is holding at the instance of the Honourable Minister of Finance, Budget and National Planning, and the main purpose of the meeting is for the Minister to brief the leadership of the National Assembly on the 2021 – 2023 Medium Term Expenditure Framework and Fiscal Strategy Paper.
“Therefore, it will not be wrong to say that the journey to the presentation of the 2021 budget estimates by the Executive arm of Government has started in earnest.
“It is our expectation in the National Assembly that this journey will lead to the presentation or laying of the budget estimates by the President before the end of September by the grace of God,” Lawan noted.