Buhari proposes N9.13 trn budget for 2020



President Muhammadu Buhari has proposed to spend N9.12 trillion for 2020 budget.This is contained in Fiscal Strategy Paper/ Medium Term Expenditure (FSP/MTEF) submitted for consideration to the National Assembly by President Muhammadu Buhari.

Buhari had in the letter read on the Senate floor commended the effort of the lawmakers towards ensuring a cordial working relationship between the legislature and executive arms of government.

The letter reads: “It is with pleasure that I hereby submit the 2020 – 2022 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) to the Senate.

“Let me use this medium to express my gratitude for the much improved partnership between the legislative and the executive arms of the Federal government in our goal of making the budget process deliver better outcomes for the Nigerian people in particular.

“I note with further appreciation, the commitment and support that Distinguished Senators have continued to demonstrate. Pursuant to the provision of the fiscal responsibility Act 2007, the preparation towards the submission of the 2020 budget to the National Assembly is progressing well.”

The President stated that key developments of the global and domestic environments were taken into consideration in the preparation of the MTEF/FSP.

He added that the Government strived to ensure that forecasted revenues were not only realistic, but also reasonably challenging in the face of its significantly constrained fiscal space.

“Planned spending has been set at prudent and sustainable levels consistent with governments overall developmental objectives as set out in the Economic Recovery and Growth Plan (ERGP).

“Given our shared objective of returning the budget to a predictable January – December fiscal year, with effect from 2020, I hereby forward the 2020/2022 FSP to the Distinguished Senate and trust that it would be extensively considered in order to facilitate the 2020 MTEF budget preparation,” the President said.

The budget proposal is slightly higher than the 2019 of 8.92 trillion.

According to the documents, the interest payments in debt is estimated at N2.45 trillion and provision for sinking fund to retire maturing bonds to local contractors is N296 billion.

“The provisions for personnel cost and pension costs are estimated at N2.67 trillion and N536.72 billion respectively.

“In addition N40.17 billion (representing 1 % of the consolidated revenue fund) has been earmarked for the basic Health Care Provision Fund (BHCPF), N22.73 billion for the power sector reform programme.

“With these provisions, only the sum of N1.01 trillion (exclusive of capital in statutory transfers) is available as amount for Ministries, Department and Agencies (MDAs) capital expenditure”.

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