The National Assembly has passed the 2021 budget raising the proposed estimate of N13.082 trillion to N13.588 trillion. This is an increase of N505 billion from the proposed figures presented by the executive.
This budget was passed on Monday by both the Senate and the House of Representatives during their special plenary held mainly to pass the budget ahead of the Christmas and New Year break.
The lawmakers are sticking to the $40 per barrel benchmark price of crude but asked President Buhari to send a supplementary budget because of the increase in oil price in the international market which is hovering between 47-50 dollars per barrel.
This supplementary budget is expected to fund critical areas in the country. Key assumptions in the 2021 budget include: Statutory transfer- N496.528 billion, Recurrent expenditure- N5.641 trillion,Capital expenditure- N4.125 trillion,Debt servicing- N3.324 trillion,GDP growth rate – 3.00%,Presenting the report, Chairman of the Committee Sen. Barau. Jibril(APC-Kano), said that the committee was guided by the revenue parameters approved by the National Assembly in preparing the budget.
Jibrin said that the budget was made up of N5.6 trillion recurrent expenditure and N4.1 trillion capital expenditure.
He said that N496 billion of the budget was for Statutory Transfer, while N3.3 trillion was for debt service.
He said the committee adopted 40 dollars per barrel crude oil price benchmark as proposed by the Executive at 1.86mbpd, while the exchange rate of N379 was adopted with the Gross Domestic Product (GDP) assumption of 3.00 percent as presented by the executive.
He said that the committee while processing the budget considered the impact of COVID-19 pandemic that has negatively affected virtually every aspect of life, businesses, individuals and revenue profile of the government.
He, however, said in view of the increasing global oil price beyond the benchmark of 40 dollars, the executive may wish to submit a Supplementary Appropriation Bill whenever it deemed fit.
Jibrin said that this would help fund critical areas that would help to accelerate the movement of the economy out of recession.
The Senate thereafter adjourned plenary until Tuesday, Jan.26 ,2021. President Muhammadu Buhari had submitted a N13.082 trillion budget to a joint session of the National Assembly on October 8th, 2020.
The 2021 budget is christened the budget of economic recovery and resilience aimed at accelerating the pace of Nigerian economic recovery, promote diversification, enhance competitiveness, and ensure social inclusion.
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