{"id":1879,"date":"2019-10-09T00:00:00","date_gmt":"2019-10-09T00:00:00","guid":{"rendered":"https:\/\/placng.org\/i\/president-muhammadu-buhari-presents-2020-budget-proposal-of-n10-33-trillion-to-the-national-assembly\/"},"modified":"2019-10-09T00:00:00","modified_gmt":"2019-10-09T00:00:00","slug":"president-muhammadu-buhari-presents-2020-budget-proposal-of-n10-33-trillion-to-the-national-assembly","status":"publish","type":"post","link":"https:\/\/placng.org\/i\/president-muhammadu-buhari-presents-2020-budget-proposal-of-n10-33-trillion-to-the-national-assembly\/","title":{"rendered":"President Muhammadu Buhari Presents 2020 Budget Proposal Of N10.33 Trillion To The National Assembly"},"content":{"rendered":"\n<p><strong>President Muhammadu Buhari presents 2020 Budget\nProposal of <s>N<\/s>10.33 trillion to the\nNational Assembly<\/strong><\/p>\n\n\n\n<p>President Muhammadu\nBuhari has formally presented the 2020 budget proposal of N10.33 trillion to a\njoint session of the National Assembly. The ceremony which took place on\nTuesday, 8 October 2019 was presided over by Senate President, Ahmed Lawan\n(APC: Yobe) and the Speaker of he House of Representatives, Rt. Hon. Femi\nGbajabiamila (APC:Lagos), who delivered the welcome remarks and vote of thanks respectively. &nbsp;It will be recalled that President Muhammadu Buhari had written to\nthe National Assembly on the 3rd of October 2019 informing them of his\nintentions to present the 2020 budget proposal on the scheduled day. <\/p>\n\n\n\n<p>Giving the welcome remarks at\nthe first Joint Session of the 9th\nNational Assembly for the presentation of the Budget, the\nSenate President welcomed the President saying that all Members of the\nNational Assembly and Nigerians had looked forward to the day with great\nexpectations. &nbsp;In particular, he noted\nthat lawmakers had converged to listen and receive the fiscal plans for the\nyear 2020, on behalf of the people they represent. &nbsp;He reaffirmed the 9th National Assembly\u2019s capacity,\ncommitment and willingness to treat legislative matters that will impact the\nlives of citizens with every sense of urgency as demonstrated by its quick\ndeliberation and passage of the Executive\u2019s 2020-2022 Medium Term Expenditure\nFramework and Fiscal Strategy Paper (MTEF\/FSP) and promised to treat the 2020\nBudget Estimates with the same commitment or more. &nbsp;He however mentioned that this commitment\nwould be guided by the legislative requirement of thorough scrutiny as he ended\nhis remarks. <\/p>\n\n\n\n<p>Termed the \u201cBudget of\nSustaining Growth and Job Creation\u201d, the 2020 budget proposal of&nbsp;<strong><s>N<\/s>10.33&nbsp;<\/strong>trillion is comprised of:<\/p>\n\n\n\n<ul><li>Statutory transfers \u2013&nbsp;N556.7 billion;<\/li><li>Debt service \u2013&nbsp;N2.45 trillion;<\/li><li>Sinking fund \u2013&nbsp;N296 billion to retire certain\n     maturing bonds issued to local contractors;<\/li><li>Non-debt recurrent expenditure \u2013&nbsp;N4.88 trillion;\n     and<\/li><li>Capital expenditure \u2013&nbsp;N2.14 trillion<\/li><\/ul>\n\n\n\n<p>&nbsp; It is also premised on the following\nassumptions:<\/p>\n\n\n\n<ul><li>Oil benchmark price: $57 per barrel<\/li><li>Oil production:&nbsp;2.18million bpd<\/li><li>Exchange rate:&nbsp;N305\/$1<\/li><li>Oil Revenue:&nbsp;N2.64 trillion<\/li><li>Non-Oil Revenue N1.81 trillion and other revenues of\n     N3.7 trillion. This figure according to the budget speech is 7 percent\n     higher than the 2019 comparative estimate of N7.594 trillion that was\n     passed. A breakdown of the sum of N556.7 billion provided for Statutory Transfers\n     in the 2020 Budget includes the following:<br>\n     <br>\n     a. N125 billion for the National Assembly;<br>\n     <br>\n     b. N110 billion for the Judiciary;<br>\n     <br>\n     c. N37.83 billion for the North East Development Commission (NEDC);<br>\n     <br>\n     d. N44.5 billion for the Basic Health Care Provision Fund (BHCPF);<br>\n     <br>\n     e. N111.79 billion for the Universal Basic Education Commission (UBEC);\n     and<br>\n     <br>\n     f. N80.88 billion for the Niger Delta Development Commission (NDDC), which\n     is now supervised by the Ministry of Niger Delta Affairs.<\/li><\/ul>\n\n\n\n<p>The President also noted that the budgetary\nallocation to the National Human Rights Commission had been increased from N1.5\nbillion that was approved in the 2019 budget to N2.5 billion in the 2020 budget\nto enable the Commission perform its functions more effectively. This\nrepresents a 67% increase in funding.<\/p>\n\n\n\n<p><strong><em>Performance of the 2019\nBudget<\/em><\/strong><\/p>\n\n\n\n<p>Speaking about the 2019 Budget performance, the President stated that the \u201cBudget of Continuity\u201d was based on a benchmark oil price of US$60 per barrel, oil production of 2.3 million barrels per day and an exchange rate of N305 to the Dollar. \u00a0Thus, based on these parameters, it had projected a deficit of N1.918 trillion or 1.37 percent of Gross Domestic Product. \u00a0However, as of June 2019, Federal Government\u2019s actual aggregate revenue (excluding Government-Owned Enterprises) was N2.04 trillion with a revenue performance of only 58 percent of the 2019 Budget\u2019s target due to the under performance of both oil and non-oil revenue sources. In other words, oil revenues were below target by 49 percent as at June 2019 with lower-than-projected oil production, deductions for cost under-recovery on supply of premium motor spirit (PMS) as well as higher expenditures on pipeline security\/maintenance and frontier exploration.<br> <br> He also stated that daily oil production averaged 1.86 mbpd as at June 2019, as against the estimated 2.3 mbpd that was assumed. \u00a0However, the shortfall was partly offset as the market price of Bonny Light crude oil averaged US$67.20 per barrel which was higher than the benchmark price of US$60. Nonetheless, revenue projections from restructuring of Joint Venture Oil and Gas assets and enactment of new fiscal terms for Production Sharing Contracts did not materialise, as the enabling legislation for these reforms is yet to be passed into law. President Buhari also gave a bleak view of the performance of non-oil taxes and independent revenues as well as receipts from Value Added Tax which were below expectations due to lower levels of activities in certain economic sectors after the holding of the general elections in March, 2019. He stated that corporate taxes were also affected by the seasonality of collections which tend to peak in the second half of the calendar year.<\/p>\n\n\n\n<p>In addition, he attributed some failures in the 2019 Budget implementation to the delay in the approval and under performance of revenue collections. As such, only recurrent expenditure items have been implemented substantially. For instance, of the prorated expenditure of N4.46 trillion budgeted, only N3.39 trillion had been spent by June 30, 2019 with capital releases under the 2019 Budget commencing in the third quarter. \u00a0Following this, as at 30th September 2019, a total of about N294.63 billion had been released for capital projects with a further direction given to the Ministry of Finance, Budget and National Planning to release an additional N600 billion of the 2019 capital budget by the end of the year.<br> <br> Despite the delay in capital releases, a deficit of N1.35 trillion was recorded at the end of June 2019 which represents 70 percent of the budgeted deficit for the full year. \u00a0The President however reassured that despite the anomalies, Nigeria has been able to meet its debt service obligations with staff salaries and overhead costs being largely covered.<\/p>\n\n\n\n<p><strong><em>2020 BUDGET PRIORITIES<\/em><\/strong><br>\nPresident Buhari explained that the 2020 Appropriation Bill was designed with\nthe following objectives:<br>\n<br>\na. Fiscal consolidation to strengthen the macroeconomic environment;<br>\n<br>\nb. Investment in critical infrastructure, human capital development and\nenabling institutions, especially in key job creating sectors;<br>\n<br>\nc. Incentivising private sector investment essential to complement the government\u2019s\ndevelopment plans, policies and programmes; and<br>\n<br>\nd. Enhancing its social investment programs to further deepen their impact on\nthose marginalised and most vulnerable Nigerians<\/p>\n\n\n\n<p>He listed some of the\nkey capital spending allocations in the 2020 Budget to include:<\/p>\n\n\n\n<ul><li>Works and Housing: N262\nbillion;<\/li><li>Power: N127 billion;<\/li><li>Transportation: N123\nbillion;<\/li><li>Universal Basic\nEducation Commission: N112 billion;<\/li><li>Defence: N100 billion;<\/li><li>Zonal Intervention\nProjects: N100 billion;<\/li><li>Agriculture and Rural\nDevelopment: N83 billion;<\/li><li>Water Resources: N82\nbillion;<\/li><li>Niger Delta Development\nCommission: N81 billion;<\/li><li>Education: N48 billion;<\/li><li>Health: N46 billion;<\/li><li>Industry, Trade and\nInvestment: N40 billion;<\/li><li>North East Development\nCommission: N38 billion;<\/li><li>Interior: N35 billion;<\/li><li>Social Investment\nProgrammes: N30 billion;<\/li><li>&nbsp;Federal Capital Territory: N28 billion; and<\/li><li>Niger Delta Affairs\nMinistry: N24 billion.<\/li><\/ul>\n\n\n\n<p>The President concluded\nhis presentation by commending the patriotic resolve of the 9th National\nAssembly to collaborate with the Executive in efforts to deliver inclusive growth\nand enhance the welfare of the people. He also assured the National Assembly of\nthe Executive\u2019s strong commitment to deepen the relationship with the National\nAssembly.<\/p>\n\n\n\n<p>Following\nthe President\u2019s budget address, the Speaker, Hon. Femi Gbajabiamila&nbsp;ended\nthe ceremony with a vote of thanks lauding the President for fulfilling his\nconstitutional obligation timeously. &nbsp;Some highlights of the Speaker\u2019s remarks\nadmitted that there were &nbsp;flaws\nin the process of passage and implementation of Nigeria\u2019s annual budgets. He\nstated that while some of the challenges were structural, others were a\nfunction of negligence in adhering to procedure. He however promised that the 9th Assembly had\nresolved to improve on these imperfections and leave a legacy of budgets that\nare enacted without rancour and achieve the objectives of national development\nfor which they are intended. &nbsp;The\nSpeaker further mentioned that the National Assembly fully intended to return\nto a January to December budget cycle and put an end to the policy instability\nand economic uncertainty that characterized an unpredictable budget cycle. He\nconcluded by stating that while the National Assembly would seek collaboration\nwith the Executive, it would not yield on its constitutional obligation to ensure faithful\ncompliance with the letter and spirit of the Appropriation Act by the\nMinistries, Departments and Agencies of Government. <\/p>\n\n\n\n<p><em><a href=\"https:\/\/placng.org\/wp\/wp-content\/uploads\/2019\/10\/2020-Budget-Speech-by-President-Muhammadu-Buhari-at-the-Joint-Session-of-the-National-Assembly.pdf\">CLICK HERE TO READ THE PRESIDENT\u2019S SPEECH AT THE PRESENTATION OF THE 2020 BUDGET <\/a><\/em><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>President Muhammadu Buhari presents 2020 Budget Proposal of N10.33 trillion to the National Assembly President Muhammadu Buhari has formally presented the 2020 budget proposal of N10.33 trillion to a joint session of the National Assembly. The ceremony which took place on Tuesday, 8 October 2019 was presided over by Senate President, Ahmed Lawan (APC: Yobe) [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":1880,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"advgb_blocks_editor_width":"","advgb_blocks_columns_visual_guide":""},"categories":[24],"tags":[],"acf":[],"author_meta":{"display_name":"PLAC","author_link":"https:\/\/placng.org\/i\/author\/olumide-adebayo\/"},"featured_img":"https:\/\/placng.org\/i\/wp-content\/uploads\/2019\/12\/HYJk9kpTURBXy8yOWYxOGQ1NTJjMzBmMjVjZGI3ZTk3MGM5YjJmYzk5Ni5qcGeRkwXNAxTNAbyBoTAB-300x169.jpg","coauthors":[],"tax_additional":{"categories":{"linked":["<a href=\"https:\/\/placng.org\/i\/category\/news\/\" class=\"advgb-post-tax-term\">News<\/a>"],"unlinked":["<span class=\"advgb-post-tax-term\">News<\/span>"]}},"comment_count":"0","relative_dates":{"created":"Posted 7 years ago","modified":"Updated 7 years ago"},"absolute_dates":{"created":"Posted on October 9, 2019","modified":"Updated on October 9, 2019"},"absolute_dates_time":{"created":"Posted on October 9, 2019 12:00 am","modified":"Updated on October 9, 2019 12:00 am"},"featured_img_caption":"","series_order":"","_links":{"self":[{"href":"https:\/\/placng.org\/i\/wp-json\/wp\/v2\/posts\/1879"}],"collection":[{"href":"https:\/\/placng.org\/i\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/placng.org\/i\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/placng.org\/i\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/placng.org\/i\/wp-json\/wp\/v2\/comments?post=1879"}],"version-history":[{"count":0,"href":"https:\/\/placng.org\/i\/wp-json\/wp\/v2\/posts\/1879\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/placng.org\/i\/wp-json\/wp\/v2\/media\/1880"}],"wp:attachment":[{"href":"https:\/\/placng.org\/i\/wp-json\/wp\/v2\/media?parent=1879"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/placng.org\/i\/wp-json\/wp\/v2\/categories?post=1879"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/placng.org\/i\/wp-json\/wp\/v2\/tags?post=1879"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}