His Excellency, the President of the Federal Republic of Nigeria, Muhammadu Buhari, GCFR, on Thursday, 8 October 2020, presented the 2021 Federal Government Budget Proposals before a joint sitting of the National Assembly (NASS).
The Proposed 2021 Budget, themed “Budget of Economic Recovery and Resilience”, is designed against the backdrop of a global economic crisis and domestic impact of COVID -19. The budget is expected to accelerate the pace of Nigeria’s economic recovery, promote economic diversification, enhance competitiveness and ensure social inclusion. The budget is also designed to further deliver on the goals of the Nigeria Economic Sustainability Plan (NESP) which was approved by the Federal Executive Council (FEC) on 24 June 2020. The NESP provides a clear road map for Nigeria’s post-Coronavirus economic recovery as a transitional plan, to take Nigeria from the Economic Recovery and Growth Plan (2017 – 2020) to the successor Medium-Term National Development Plan (2021 – 2023).
The proposed aggregate revenue and expenditure budgets for 2021 are ₦7.89 trillion and ₦13.08 trillion, respectively, resulting in ₦5.02 trillion fiscal deficit. The deficit will be financed mainly by new borrowings totalling ₦4.28 trillion, ₦205.15 billion from privatization proceeds and ₦709.69 billion from drawdowns on multilateral and bilateral loans secured for specific projects and programmes.
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