FG to finance 2021 budget deficit of N5.1 trillion with loans

The FG says is will seek loans and borrow an finance 2021 budget deficit of N5.1 Trillion

The national assembly on Tuesday provided an update to Nigerians on the affairs of the 2021 budget as promised. The FG presented the breakdown of the 2021 budget to the assembly and it bore a deficit of N5.1 trillion naira.

The deficit represents 3.64% of Nigeria’s estimated GDP even though the fiscal responsibility act has a provision that states it should not exceed 3%. The government says it will seek domestic and foreign sources to finance the 2021 budget deficits.

• Buhari To Tackle Money Laundering and Freeze Accounts, Seeks Approval
• OPay To Work With WorldRemit For International Money Transfers

It expects to generate N2.1 trillion from domestic resources, N2.1 trillion from foreign resources, N709 billion from multilateral loans, and N205 billion from privatization proceeds.

The minister of finance, Zainab Ahmad highlighted the key assumptions of the N13.8 trillion 2021 budget. She said the proposed appropriation bills includes a total of; N615 billion for personnel expenses, N3.66 trillion overheads, N1.13 trillion capital expenditure.

• 2021 N13.08 Trillion Budget – FEC Targets Exchange Rate of N379 to One Dollar
• Nigeria: Budget 2021 Breakdown – What President Buhari Proposes All Groups

Taxes from the Nigerian customs service, company and income which she projects at N7.8 trillion are to form major revenue sources for the government. Company taxes are projected at N447 billion, customs N266 billion, value-added taxes N117 billion.

The government promising transparency in the implementation of the composed budget. It is paramount that it works towards social-economic developments in the country.

Follow us on Facebook and Twitter and send us stories on contact@africareinvented.com