President Buhari has presented the Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper to the National Assembly for approval, shortly before the Assembly proceeded on recess. The President in his letter to the National Assembly, noted that the presentation is to set the stage for the eventual presentation of the 2021 National budget, in line with the Federal Government’s resolve to ensure that the national budget is implemented within the year referred to in the budget calendar. The document reflects a N12.66 trillion budget estimate for the 2021 fiscal year, with a deficit of N5.16 trillion. Budgetary transfers are pegged at N481.41 billion with a recurrent expenditure and capital expenditure of N5.75 trillion and N3.12 trillion, respectively. Debt servicing was put at N3.12 trillion. In addition to a loan package of N4.28 trillion, the Federal Government is targeting higher revenue collection to finance its expenditure and has put expected proceeds from the private sector at N202.12 billion to fund the budget. It also proposes N500 billion as COVID-19 intervention funds, N52 billion for the Public Works Programme whichh targets 774,000 employees, N32.46 billion for the Social Intervention Programme, N60billion for road maintenance across the country and N5 billion as bailout funds for the aviation sector. The 2021 budget is predicated on the following parameters: crude oil price of $40 per barrel at a production rate of 1.86 million barrels per day and an exchange rate of N360 per $1.
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