In this piece, James Emejo writes that beyond the timely submission of the proposed 2021 Budget to the National Assembly, resource mobilisation, discipline, transparency as well as implementation remain crucial towards achieving the much desired recovery and growth of the economy
significant adverse consequences. However, we are working assiduously to ensure a rapid recovery in 2021. We remain committed to implementing programmes to lift 100 million Nigerians out of poverty over the next 10 years.” But going by the performance of key macroeconomic indicators including inflation, GDP, unemployment, poverty among others, it would require patriotism and strong faith to believe that the Nigerian economy will survive a second recession by December.
He said the 2021 budget deficit , is projected at N5.20 trillion, representing 3.64 per cent of the estimated GDP, slightly above the three per cent threshold set by the Fiscal Responsibility Act, 2007. According to him, “As you will observe, the format of the 2021 Appropriation Bill has been modified to include budgeted revenues, no matter how small, for each MDA, to focus on internal revenue generation.
The president said statutory transfer provisions are Niger Delta Development Commission – N63.51 billion; North East Development Commission – N29.70 billion; National Judicial Council -N110.00 billion; Universal Basic Education Commission -N70.05 billion; Independent National Electoral Commission -N40 billion; National Assembly -N128.00 billion; Public Complaints Commission -N5.20 billion; Human Rights Commission – N3 billion; and Basic Health Care Provision Fund – N35.03 billion.
The key capital spending allocations include Power – N198 billion ; Ministry of Works and Housing N404 billion; Ministry of Transportation -N256 billion; Defence – N121 billion; Agriculture and Rural Development -N110 billion. They particularly praised the executive for among other things factoring the present economic reality occasioned by the COVID-19 pandemic into the drafting of the budget.
He said: “I think the assumptions and budget parameters are realistic except for the Exchange rate of N379 to the dollar that may not hold due to the on-going process of unifying Exchange rates across all forex windows by the CBN consistent with the IMF prescription.“I also think the real GDP growth rate projected at 3 per cent is a little ambitious in view of the impact of COVID-19 on the economy expected to linger till next year.
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