His Excellency, President Muhammadu Buhari, GCFR, signed both the 2021 Appropriation Bill (“the Budget”) and Finance Bill, 2020 into law on 31 December 2020, following their passage by the National Assembly
Before approving the proposed Budget for the President’s signature, the National Assembly increased the aggregate revenue and planned expenditure from ₦7.89 trillion to ₦7.99 trillion and from ₦13.08 trillion to ₦13.59 trillion respectively. This has increased the budgeted fiscal deficit by ₦405billion from ₦5.196 trillion to ₦5.601 trillion. The additional ₦0.51 trillion planned expenditure in the approved Budget is mainly due to the increase in contribution to the Development Fund for Capital Expenditure for the year.
We commend both the National Assembly and the Executive for ensuring a timely passage of the Appropriation Act, 2021 and enactment of Finance Act, 2020. This is the second consecutive year that the Budget has been approved before the commencement of the fiscal year, and raises hope of sustaining Nigeria’s return to the January to December budget cycle.
We will issue a detailed newsletter on the 2021 Budget and Finance Act, 2020 in due course.
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