The Highlights And Components of Nigeria's 2020 Budget.

On 8th October, 2019, President Muhammadu Buhari presented the estimates of the Nigerian budget for the year 2020 which amounted to a total of N10.33 trillion to the National Assembly. The following are the highlights and components of the budget:


1.  Non-Debt recurrent expenditure which was estimated to be N3.6 trillion for personnel and pension costs. The estimate showed an increase of N620. 28 billion over the 2019 buudget, in order to ensure the payment of the new minimum wage. And also the estimate was made to make provisions for increase in remunerations of the Police and Armed Forces.

2. To build and develop more cargo terminals in existing ports outside Lagos.

3. Increase of VAT from 5% to 7.5%.

4. VAT registration threshold amounting to over N25 million annual turnover.

5. Innovative borrowings such as Sukuk, Green Bonds and Diaspora Bonds.

6. Presentation of the two Petroleum Industry Executive Bills to the National Assembly.

7. Re-present the Deep Offshore and Inland Basin Production Sharing Contracts (Amendment to be made).

8. Allocations for Capital Expenditure include

a. Works and Housing N262 billion
b. Power N127 billion
c. Transportation N123 billion
d. Universal Basic Education N112 billion
e. Defence N100 billion
f. Education N48 billion
g. Health N46 billion.

The Nigerian budget for the year 2020 shows a deficit one with an expenditure of N10.33 trillion over the proposed income of N8.155 trillion.


Comments

  1. Unknown8 January 2020 at 23:31

    Thats a huge one with that amount of deficit as against the expected income. Which way my country our debt keep on increasing by the day.

    ReplyDelete

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