There is heavy security at the National Assembly complex ahead of President Muhammadu Buhari’s arrival for the presentation of the 2020 budget presentation to the joint session of the National Assembly.
According to the separate letters sent to the President of the Senate, Senator Ahmad Lawan and Speaker of the House of Representatives, Hon. Femi Gbajabiamila, President Buhari is expected to address the Senators and members of the House of Representatives by 2 pm today.
President Buhari is expected to be accompanied by Ministers and members of the National Economic Council (NEC).
Meanwhile, most of the workers who converged at the entrance leading to the National Assembly complex were denied access to their respective offices by officials of Department of State Security deployed from the State House and Nigeria Police Force, while Business activities and banking services across the National Assembly were paralyzed.
As stipulated in the 2020 budget proposal circular issued by the Minister of Finance, Budget and National Planning, Mrs. Zainab Shamusuna Ahmed, all the Ministries, Departments and Agencies (MDAs), were advised to consider abandoned and ongoing projects in their respective portfolios, taking account of their state of completion and status, MDAs can include such projects in their capital budgets.
inline with the government’s efforts to complete ongoing projects and improve its Public Investment Management.
Similarly, all MDAs are henceforth required to capture all programmed aid/grants, as well as the proposed expenditure of all such in their annual budgets. A schedule of all such aid/grants (in cash and in-kind) must also be submitted separately to the International Cooperation Department of the Ministry of Budget and National Planning for authentication before the MDA’s budget is finalised. Form BOF/MISC/002 is attached as Annexure 2 for this purpose.
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MDAs are required to provide full information on the projects that require counterpart funding. Form BOF/MISC/003 is attached as Annexure 3 for this purpose. Counterpart funds will be available to only MDAs that justify the projects and make necessary provisions in their budgets.
An aggregate revenue of N6.99 trillion was projected to fund the 2019 Budget of N8.92 trillion. This implies a deficit of N1.92 trillion (or 1.37% of GDP) which is to be financed mainly by borrowing.
As at 30th June 2019, FGN’s actual revenue was N2.04 trillion (58% of the N3.49 trillion pro-rata budget). The shortfall of 42% is attributable to the underperformance of both oil and non-oil revenue sources.
Seasonal factors, as well as the slow recovery in economic activities that drive consumption and the lingering security issues, contributed to the underperformance of the various revenue sources.
The non-implementation of other revenue initiatives like the restructuring of JV oil assets and tighter performance
management of Government-Owned Enterprises (GOEs) further explain the weak revenue performance.
2.3 Of the total appropriation of N8.92 trillion and a prorated expenditure sum of N4.46 trillion, N3.39 trillion has been spent by June 2019 (i.e. 76% performance). A total of N2.05 trillion has been released for non-debt recurrent expenditure, including Salaries, Pensions and Overheads, while N1.11 trillion has been released to cover debt service obligations during the period.
No capital expenditure release was made in the first half of 2019 under the 2019 Budget Provision as the 2018 capital budget was implemented until June 2019 as stipulated in the 2018 Appropriation Act.
In effect, a deficit of N1.35 trillion was incurred as at end of June 2019, which is 70% of the budgeted deficit for the full year.
and then