2021 Budget: 70% Funding To Come From Non-Oil Sector — FG

2021 Budget: 70% Funding To Come From Non-Oil Sector — FG

The federal government has revealed that the bulk of the funding sources for the 2021 budget would come from the non-oil sector.

This was disclosed by the minister of Finance, Budget and National Planning, Mrs Zainab Ahmed.

Featured 24 reports that Ahmed spoke virtually while presenting the 2021 federal government approved budget.

The minister said about 70 per cent of the bulk of the funding sources for the budget would come from the non-oil sector.

Providing an overview of the revenue framework for 2021, the minister said the aggregate revenue available to fund the 2021 budget was projected at N7.99tn, 36.9 per cent higher than the 2020 projection of N5.84tn.

She noted that to promote fiscal transparency, accountability and comprehensiveness, the budgets of 60 government-owned enterprises were integrated in the Federal Government’s 2021 budget proposal.

Ahmed said, “In aggregate, 30 per cent of projected revenues is to come from oil-related sources, while 70 per cent is to be earned from non-oil sources.

“This, therefore, shows that the Nigerian economy is gradually becoming less dependent on oil. Overall, the size of the budget has been constrained by our relatively low revenues.”

Ahmed, however, pointed out that going by the contributions of the non-oil sector to the funding of national budgets, the economy was systematically moving away from heavy dependence on oil earnings.

She stated that overall budget deficit was N5.6tn for 2021, representing 3.39 per cent of Gross Domestic Product.

The minister explained that the budget deficit would be financed mainly by borrowings, as N2.34tn would be borrowed from domestic and foreign sources each, N709.69bn from multilateral and bilateral loan drawdowns, while privatisation proceeds would provide N205.15bn.

President Muhammadu Buhari on Thursday December 31, 2020 signed the 2021 Appropriation Bill of N13.588 trillion christened the Budget of ‘Economic Recovery and Resilience’ into law.

Featured24 recalls that the budget estimate was increased by N505.61 billion from the initial N13.082 billion presented by the President to the joint session of the National Assembly earlier in October.

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