President Muhammadu Buhari Tuesday presented a N10.33 trillion budget estimates for the 2020 fiscal year to a joint session of the National Assembly (NASS).
The Federal Executive Council (FEC) had proposed N10.007 trillion for the financial year but the figure was increased to N10.33 trillion by the National Assembly.
He said the 2020 appropriation bill is a budget of fiscal consolidation to strengthen the country’s macroeconomic environment.
He said investing in critical infrastructure, human capital development and enabling institutions, especially in key job creating sectors, are the key elements of the budget.
He said the budget was meant to incentivise private sector investment essential to complement government’s development plans, policies and programmes.
He said the budget is aimed at enhancing the social investment programmes to further deepen their impact on the marginalised and most vulnerable Nigerians.
The president said the federal government targets N8.155trillion revenue in 2020 comprising oil revenue of N2.64 trillion, non-oil tax revenues of N1.81 trillion and other revenue of N3.7trillion.
“This is seven per cent higher than the 2019 comparative estimate of N7.594 trillion inclusive of the Government Owned Enterprises,’’ he said.
The president said non-debt recurrent expenditure include N3.6 trillion for personnel and pension costs, an increase of N620.28 over the 2019 fiscal year figure.
“This increase reflects the new minimum wage as well as our proposals to improve remuneration and welfare of our police and armed forces,’’ he said.
He said N2.46 trillion was earmarked for capital projects inclusive of N318.06 billion in statutory transfers.
He said other estimates are N556.7 billion for statutory transfers, N2.45 trillion for debt servicing, and N296 billion as sinking fund.
He said the sinking fund would be used to “retire maturing bonds to local contractors.”
The president said the 2020 budget is based on an oil production estimate of 2.18 million barrels per day, oil price benchmark of 57 dollars per barrel and an exchange rate of N305 to a dollar.
He said other benchmarks are: real Gross Domestic Product (GDP), growth rate of 2.93 per cent while inflation rate “is expected to remain slightly above single digits in 2020’’
The president expressed confidence over the continued recovery of the nation’s economy and the increase in the foreign reserve from 23 billion dollars in 2016 to N42.5 billion dollars in August.
“This increase is largely due to favourable prices of crude oil in the international market, minimal disruption of crude oil production given the stable security in the Niger Delta region and our import substitution drive, especially in key commodities,’’ he said.