President Muhammadu Buhari on Tuesday presented the 2020 Budget of N10.33 trillion before a joint session of the national assembly in Abuja. The President anchored the budget on oil price benchmark of 57 dollars per barrel, daily oil production estimate of 2.18 mbpd and an exchange rate of N305 per U.S. dollars for 2020.
He noted that the budget will be based on an increase of the Value Added Tax (VAT) rate from 5% to 7.5%. He noted that the revenue generated from the increased VAT will be used to fund health, education and infrastructure programmes.
The sum of N8.155 trillion is estimated as the total Federal Government revenue in 2020 and comprises oil revenue N2.64 trillion, non-oil tax revenues of N1.81 trillion and other revenues of N3.7 trillion. N10.33 trillion is projected as expenditure for 2020, leading to a deficit budget of N2.18 trillion.
From this amount, N2.46 trillion is proposed for capital projects while N4.88 trillion is for recurrent expenditure.
The sum of 2.45 trillion will be used for debt servicing.
A breakdown of the capital expenditure includes: –
Works and Housing: N262 billion;
Power: N127 billion:
Transportation: N123 billion;
Universal Basic Education Commission: N112 billion;
Defence: N100 billion;
Zonal Intervention Projects: N100 billion;
Agriculture and Rural Development: N83 billion;
Water Resources: N82 billion;
Niger Delta Development Commission: N81 billion;
Education: N48 billion;
Health: N46 billion;
Industry, Trade and Investment: N40 billion;
North East Development Commission: N38 billion;
Interior: N35 billion;
Social Investment Programmes: N30 billion;
Federal Capital Territory: N28 billion;
Niger Delta Affairs Ministry: N24 billion.