Politics

FG to possibly spend N11.86 trillion in 2021

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The Federal Government of Nigeria has proposed to spend ₦11.86 trillion, come 2021, following the activation of the 2020 budget implementation.

On Friday, during the presentation of the Medium Term Expenditure Framework (MTEF) 2021-2023 in Abuja, Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, disclosed this.

Notwithstanding this adventurous spending projection, Zainab Ahmed also stated that the country’s fiscal futunes will suffer a deficit of ₦5.16 trillion because of the government’s projected ability to generate only ₦6.98 trillion revenue all in 2021.

Interestingly, while the Naira has been devalued to ₦380/$, the minister of finance has pegged exchange rate in the 2021 fiscal year at ₦360/$.

The 2021-2023 MTEF/FSP is the pre budget statement that provides the framework for the development of the 2021 Budget.

The minister said “it is being framed against the backdrop of a challenging global macroeconomic environment as well as domestic factors.”

The government she said will “aim to keep the deficit within the 3% ceiling over the medium term, and are therefore working on identifying new revenue sources and/or cost reductions.”

The draft 2021 – 2023 MTEF/FSP she noted “has been prepared against the backdrop of heightened global economic uncertainty.”

According to her, “the medium-term outlook for Nigeria suggests that fiscal risks are somewhat elevated, largely due to Covid-19 related disruptions which have exacerbated structural weaknesses in the economy.”

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