The Senate on Monday passed the 2021 Federal Government budget of N13.588trn.
The 2021 Budget which was submitted by President Muhammadu Buhari to a joint session of the National Assembly on October 8th, 2020, was increased from N13.08trn to N13.58trn, representing a N505bn increase.
The 2021 budget according to the government is aimed at accelerating the pace of Nigerian economic recovery, promote diversification, enhance competitiveness, and ensure social inclusion.
The 2021 budget which was scheduled to be passed last Thursday by the Senate was postponed till Monday.
Buhari had said the proposed N13.08trn expenditure comprises Capital Expenditure of N3.85trn, Non-debt Recurrent Costs of N5.65trn; Personnel Costs of N3.76trn; Pensions, Gratuities and Retirees’ Benefits of N501.19bn; Overheads of N625.5bn; Debt Service of N3.124trn; Statutory Transfers of N484.49bn; and Sinking Fund of N220bn to retire certain maturing bonds).
The President had said the 2021 Budget deficit inclusive of Government Owned Enterprises and project-tied loans is projected at N5.2trn, adding that this represents 3.64 percent of the budget size.
The aggregate revenue available to fund the 2021 budget is projected at N7.89trn which is 35 per cent higher than the 2020 revised budget of N5.84trn.
To promote fiscal transparency, accountability and comprehensiveness, the budgets of 60 Government Owned Enterprises are integrated in the Federal Government’s 2021 budget proposal.
In aggregate, 31 per cent of projected revenues is to come from oil related sources while 69 per cent is to be earned from non-oil sources.
Overall, the size of the budget has been constrained by relatively low revenues.
