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Buhari proposes N9.12trn budget for 2020

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Buhari proposes N9.12trn budget for 2020

Muhammadu Buhari

*Fiscal deficit stands at N2.28trn 
* To borrow N1.70trn deficit funding

President Muhammadu Buhari has proposed N9.12trillion as total expenditure profile for the 2020 budget which includes grants and donor funding of N36.39billion.

The proposals which is just N2billion higher than the NN8.92 billion 2019 budget is contained in the 2020-2022 Medium Term Expenditure Framework, MTEF and Fiscal Strategy Paper, FSP forwarded to  the Senate by the President on Wednesday for expeditious consideration and approval.

President Buhari in the MTEF/FSP documents also stated that the aggregate fiscal deficit for the 2020 budget will be N2.28 trillion as against N1.92trillion estimated and approved for the 2019 budget.

The N2.28 trillion fiscal deficit proposal, according to the President, will be partly financed by new borrowings estimated at N1.70trillion while about N252.08billion will be derived from Privatization proceeds and N328.13billion as loans secured for specific development projects.

The underlining assumptions for the budget proposals as contained in the document are $55 oil price bench mark, 2.18million barrels oil production per day, N305 to a US dollar exchange rate,2.93% GDP growth rate etc.

President Buhari in the letter read on the floor of the Senate by the Senate President, Ahmad Ibrahim Lawan ,  commended the effort of lawmakers towards ensuring a cordial working relationship between the legislature and executive arms of government.

Buhari proposes N9.12trn budget for 2020

The letter reads: “It is with pleasure that I hereby submit the 2020-2022 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) to the Senate.

“Let me use this medium to express my gratitude for the much improved partnership between the legislative and the executive arms of the Federal government in our goal of making the budget process deliver better outcomes for the Nigerian people in particular.

“I note with further appreciation, the commitment and support that Distinguished Senators have continued to demonstrate. Pursuant to the provision of the fiscal responsibility Act 2007,the preparation towards the submission of the 2020 budget to the National Assembly is progressing well.

“The MTEF/FSP was prepared taking into account, key development of the global and domestic environments. We have endeavoured to ensure that forecasted revenues are realistic, but also reasonably challenging in the face of our significantly constrained fiscal space.

“Planned spending has been set at prudent and sustainable levels consistent with governments overall developmental objectives as set out in the Economic Recovery and Growth Plan (ERGP).

“Given our shared objective of returning the budget to a predictable January – December fiscal year, with effect from 2020,I hereby forward the 2020/2022 FSP to the Distinguished Senate and trust that it would be extensively considered in order to facilitate the 2020 MTEF budget preparation.”

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