President Muhammadu Buhari has presented a budget proposal of N10.33 trillion before a joint session of National Assembly for consideration for the 2020 fiscal year.

The expenditure estimate includes statutory transfers of N556.7 billion, non-debt recurrent expenditure of N4.88 trillion and N2.14 trillion of capital expenditure (excluding the capital component of statutory transfers). Debt service is estimated at N2.45 trillion, and provision for Sinking Fund to retire maturing bonds issued to local contractors is N296 billion.

According to the President, sum of N8.155 trillion is estimated as the total Federal Government revenue in 2020 and comprises oil revenue N2.64 trillion, non-oil tax revenues of N1.81 trillion and other revenues of N3.7 trillion.

This is 7 percent higher than the 2019 comparative estimate of N7.594 trillion inclusive of the Government Owned Enterprises.

He explained that oil benchmark of $57 per barrel, production of 2.18m barrels per day, exchange rate of N305 to the dollar.

Buhari said his government will raise the threshold for VAT registration to N25m turnover per annum, to bring relief to small(est) businesses.

He added that the goal is for the 2020 Appropriation Act to come into effect on January 1, 2020.

President Buhari said ”
the 2020 Budget is expected to accelerate the pace of our economic recovery, promote economic diversification, enhance competitiveness and ensure social inclusion. We are optimistic of attaining higher and more inclusive GDP growth in order to achieve our objective of massive job creation and lifting many of our citizens out of poverty.”

“The efficiency of port operations will also be enhanced by implementing a single customs window, speeding up vessel and cargo handling and issuing more licenses to build modern terminals in existing ports, especially outside Lagos.”

“Furthermore, completing the reforms to the governance and fiscal terms of the Petroleum Industry will provide certainty and attract further investments into the sector. A consequence of this will be increase in jobs and in government’s take.”

“I therefore seek your support in passing into law two Petroleum Industry Executive Bills I will be forwarding to you shortly”.

On their parts, President of the Senate, and Speaker House of Representatives said a partnership between both arm of government would redefine good governance in the interest of Nigerians.

The 2020 budget was the first to be presented before the 9th National Assembly by President Muhammadu Buhari.

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