Nigeria is proposing to spend N12.66 trillion in 2021 with based on projected $40/ barrel crude oil benchmark and oil production of 1.6 million barrels per day, according to the approved the 2021-2023 Medium Term Expenditure Framework and Fiscal Strategy Paper by the federal cabinet on Wednesday.
However, in a paper presented to the Civil Society Organisations (CSOs) and private sector operators last week, the minister of finance and budget said the government is proposing a budget deficit of N5.16 trillion and revenue estimate of N6.98 trillion for the 2021 fiscal year.
Zainab Ahmed, who said the country faces significant medium-term fiscal challenges, especially with respect to its revenues had disclosed that the government disbursed a total expenditure of N3.34 trillion in the first five months of this year.
According to her, N253.33 billion was disbursed for capital expenditures while recurrent gulped N2.85 trillion in the same period.
He said the government earned a total of n701.60 billion from crude exports and N439.32 billion from non-oil revenue in the first five months of the year, excluding earnings from stamp duty which was yet to be computed into the budget.
On Wednesday, the Federal Executive Council (FEC) approved the MTEF and FSP for 2021-2023, which is a preliminary step toward submitting the 2021 budget to the National Assembly.
The Minister of State for Finance, Budget and National Planning, Clement Agba, who briefed State House correspondents at the end of the meeting, said the government estimated inflation rate at 11.9 percent while the projected gross domestic growth rate of three percent and revenue target of N7.50 trillion.
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