FG targets N8.433tr revenue in 2021 – The Federal Government yesterday said its total federally distributable revenue for the 2021 Budget has been estimated at N8.433 trillion while total revenue available to fund the 2021 federal budget is put at N7.886 trillion.
This was disclosed by President Muhammadu Buhari on Thursday at a joint session of the National Assembly where he presented the 2021 budget.
The money available to fund next year’s budget includes grants and aid of N354.85 billion as well as the revenues from sixty Government-Owned Enterprises (GOEs).
According to the 2021 budget document, oil revenue is projected at N2.01 trillion, while non-oil revenue is estimated at N1.49 trillion.
The 2021 appropriation bill has been modified to include budgeted revenues, regardless of amount, for each MDA, to focus on internal revenue generation.
An aggregate expenditure of N13.08 trillion was proposed for the Federal Government in 2021. This includes N1.35 trillion spending by Government-Owned Enterprises and Grants and Aid funded expenditures of N354.85 billion.
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For 2021, the proposed N13.08 trillion expenditure comprises; non-debt recurrent costs of N5.65 trillion; personnel costs of N3.76 trillion; pensions, gratuities and retirees’ benefits of N501.19 billion; overheads of N625.50 billion; debt service of N3.124 trillion; statutory transfers of N484.49 billion; and Sinking Fund of N220 billion (to retire certain maturing bonds).
The 2021 budget deficit (inclusive of Government Owned Enterprises and project-tied loans), is projected at N5.20 trillion.
Similarly, total overhead costs of MDAs and Government Owned Enterprises are projected to rise to N625.50 billion in 2021, mainly due to the inclusion of the overheads of an additional 50 Government Owned Enterprises.
This was as the President of the Senate, Ahmed Lawan, assured President Muhammadu Buhari, that the National Assembly will pass the 2021 Appropriation Bill, before the end of the year.
Lawan, who gave the assurance, yesterday, in his opening remarks at the presentation of the 2021 Appropriation Bill by President Buhari, said the move had become necessary to consolidate the gains of early passage of the 2020 Appropriation Act.
The Senate President noted that the implementation of the 2020 budget has shown a “remarkable improvement”, when compared to previous years.
Nevertheless, he added that interactions between the National Assembly Committees on Finance and National Planning and Economic Matters and revenue generating agencies has revealed that there is so much leakages in the collections and remittances. Consequently, Lawan called for a critical examination of the collection and remittances of revenue by the the various Ministries, Departments and Agencies (MDAs), as paucity of funds has made the government resort to borrowing to fund developmental programmes.
According to him, “Our revenue generation, collection and remittances need to be critically examined. Recent interactions between our Committees on Finance and National Planning and Economic Matters, with over 200 revenue generating and collection agencies have revealed so much inefficiencies in their systems.
Meanwhile, the House of Representatives said it has set out Tuesday and Wednesday next week for debate on the general principles of the 2021 budget. House spokesman, Benjamin Kalu, told journalists, at a press briefing, that thereafter, the House will suspend plenary, on a yet to be announced date, to enable various standing committees meet with Ministries, Departments and Agencies (MDAs) for the budget defence proceess.
