Budget IT states 10 Things you should know about the Proposed Revised 2020 Nigerian Budget.
1. FG proposes $25 per barrel as new oil benchmark price. Revised Oil Revenue target is N924bn as against N2.64tn earlier approved by NASS, a 65% reduction
2. FG proposed a revised Non-Oil Revenue target as N1.62tn as against N1.81tn in Appropriation Act, a 10% decrease.
3. A significant cut was made to Customs revenue target from N618bn as approved to N450bn in the revised proposal, a 27% decrease.
4. While allocations NASS and NJC were by 10%, revised proposal allocations for UBEC and Basic Healthcare Fund (BHCF) were cut from 54% and 43%.
UBEC & BHCF budgets are tied to revenue performance but govt is not augmenting the shortfall for these budget lines.
5. NASS is projected to receive N115bn while UBEC and BHCF are expected to receive N51bn and N25bn. How right is this?
6. Allocations for the security sector - Interior, National Security Adviser and Defence - were largely untouched.
7. Capital Allocations to the social sector were largely cut which includes Ministries of Health by 25%, Ministry of Education by 20% and Women Affairs by 38%.
Why are capital projects in health sector cut in a pandemic?
8. Capital allocations key anti-corruption agencies such as ICPC and Code of Conduct Tribunal were cut by 58% by 88% respectively.
9. Growth Sectors: Capital allocations to the Ministry of Works and Housing were cut from N315bn to N256bn, Agriculture from N124bn to N79bn, Science and Technology from N62bn to N42bn and Trade & Investment from N38bn to N23bn.
10. FG proposed N313bn (N213bn recurrent & N100bn capital expenditure) as COVID-19 Intervention Fund. There are no details on how this will be used.
Due to the underlying legislation, allocations to UBEC and BHCF are tied to revenue performance, while allocations to the Presidency, NASS and NJC are arbitrarily assigned irrespective of how FG revenue performs. Why should this be in a pandemic?
It is time to significantly reduce waste and retain important capital investments in Works & Housing, Agriculture, Health, Education that are needed as Nigeria stares a period of recession.