2020 Budget: FG Trims ₦312bn From Capital Expenditure Amid COVID-19 Scourge

President Muhammadu Buhari

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In the bid to tackle the COVID-19 pandemic and also grapple with dwindling oil prices, the federal government has pruned fund earmarked for capital projects in the 2020 budget by N312 billion.

 

This amount represents showed a cut of 20% off capital projects.

 

According to the TheCable, the national assembly and judiciary will determine the cuts to be made to their allocations.

 

Other proposed changes to the budget include a reduction of the budget oil production volume from 2.18 million barrels per day to 1.70 million barrels.

 

The projected budget benchmark price from $57 per barrel to $30.

 

The exchange rate was also adjusted from N305/$ to N360/$.

 

The projected oil revenue was reviewed downward from N7.67 trillion to N1.44 trillion.

 

The net non-oil revenue was also projected downward from N6.442 trillion to N5.84 trillion with corporate tax and value-added tax expected to contribute N1.822 trillion and N.164 trillion down from the original N1.836 and 2.25 trillion respectively.

 

Funds to be distributed to the three tiers of government from the federations account is expected to dip from N8.5 trillion to N3.12 trillion.

 

No adjustments were made to the debt service leaving the budgeted N2.45 trillion.

 

New borrowings by the government was adjusted from N1.59 trillion to N4.43 trillion with incremental borrowing projected at N2.84 trillion.

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