OrderPaperToday – The Federal Government has proposed an aggregate expenditure of N10.33 trillion for 2020.
This proposition was contained in the 2020 appropriation bill presented to the National Assembly by President Muhammadu Buhari a short while ago.
Of this amount, the non-debt recurrent expenditure includes N3.6 trillion for personnel and pension costs which is an increase of N620.28 billion over 2019. This is due to the new minimum wage demanded by a recent law.
Overhead cost in the proposition is placed at N426.6 billion while the sum of N2.46 trillion (inclusive of N318.06 billion in statutory transfers) is proposed for capital projects.
The 2020 capital budget is N721.33 billion (or 23 percent) lower than the 2019 budget provision of N3.18 trillion.
The budget deficit is projected to be N2.18 trillion comprising draw-downs on project-tied loans and other related capital expenditures.
The deficit will be financed by new foreign and domestic borrowings, privatization proceeds, and signature bonuses.
The sum of N2.45 trillion was provided for debt service. Of this amount, 71 percent is to service domestic debt which accounts for about 68 percent of the total debt.
The sum of N296 billion is provided for the Sinking Fund to retire maturing bonds issued to local contractors.
As already approved by the parliament in the Medium Term Expenditure Framework (MTEF), the 2020 budget is hinged on a crude oil benchmark price of $57/barrel, a $2 raise from what the President had proposed.
The increment is to be used to pay salaries and emolument of the proposed 30,000 recruitment of 30,000 personnel in Police, Army, Immigration and Civil Defence.
The daily production of crude oil was pegged 2.18million barrels while the exchange rate of N305 to a dollar is maintained like the past three years.