Says Debt Servicing takes N3.27trn
Optimistic 2021 budget ‘ll perform better
BY COBHAM NSA, ABUJA – Despite the debilitating challenges of COVID-19 on the nation’s economic outlook, the Federal Government says it expended about N1.8 trillion on capital projects implemented in year 2020.
The total capital expenditure financing was part of the overall N10.8 trillion 2020 budget package implemented by the government
Also spent during the fiscal year under review was a total of N3.27 trillion for debt servicing, both foreign and local.
The stated figures were released by Minister of Finance, Budget and National Planning, Zainab Ahmed on Tuesday during the public presentation of the 2021 Appropriation Act recently signed into law by President Muhammadu Buhari.
The event held virtually had Mrs Ahmed explaining that the N1.8 trillion capital projects spending for 2020, represents about 89 per cent of funds earmarked for capital projects in the budget.
She said of the N1.8 trillion invested on capital projects, about N118.37 billion went into Coronavirus (COVID-19) related capital disbursements.
According to her, though the Federal Government projected the sum of N9.97 trillion in year 2020 budget, the actual expenditure rose to about N10.08 trillion, which represents over 101 per cent performance.
On government’s outstanding commitment to workers, the Finance Minister said about N3.19 trillion was released to pay salaries and pensions under the recurrent expenditure component of the budget during the year.
Away from the 2020 budget performance details, the Minister also disclosed that N3.32 trillion, representing about 24.5 per cent of the total expenditure the 2021 budget will be channeled into debt servicing.
Mrs Ahmed further said about N709.69 billion from multilateral/bi-lateral loan drawdown will be available for government
to augment funds raised from borrowing; and sale of public assets to finance the deficit in this year’s budget.
More coming soon …