After activating the 2020 funds implementation, the Federal Government has proposed to spend ₦11.86 trillion in 2021
Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, made this revelation whereas presenting the Medium Term Expenditure Framework (MTEF) 2021-2023 in Abuja on Friday.
Notwithstanding this adventurous spending projection, Zainab Ahmed additionally acknowledged that the nation’s fiscal futunes will endure a deficit of ₦5.16 trillion due to the federal government’s projected capacity to generate solely ₦6.98 trillion income all in 2021.
Interestingly, whereas the Naira has been devalued to ₦380/$, the minister of finance has pegged alternate charge in the 2021 fiscal 12 months at ₦360/$.
The 2021-2023 MTEF/FSP is the pre funds assertion that gives the framework for the event of the 2021 Budget.
Zainab Ahmed stated “it’s being framed in opposition to the backdrop of a difficult international macroeconomic surroundings in addition to home elements.”
The authorities she stated will “intention to hold the deficit inside the 3% ceiling over the medium time period, and are due to this fact engaged on figuring out new income sources and/or price reductions.”
The draft 2021 – 2023 MTEF/FSP she famous “has been ready in opposition to the backdrop of heightened international financial uncertainty.”
According to her, “the medium-term outlook for Nigeria means that fiscal dangers are considerably elevated, largely due to Covid-19 associated disruptions which have exacerbated structural weaknesses in the financial system.”