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

Galaxy’s Godfrey Eshiemoghie reports that the proposed budget shows that N2.46 trillion will be used for capital projects. 

According to the President, the 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 per cent higher than the 2019 comparative estimate of N7.594 trillion inclusive of the Government Owned Enterprises.

As part of measures towards increased revenue for the government, it is proposing a Finance Bill which President Buhari said will be forwarded to the National Assembly soon for its consideration.

The draft Finance Bill proposes an increase of the VAT rate from 5% to 7.5%, as such, the 2020 Appropriation Bill is based on this new VAT rate.

President Muhammadu Buhari pledged the commitment of his administration towards combating poverty and ensuring improved welfare for Nigerians, particularly the underprivileged.

On its part, the National Assembly leadership pledged readiness towards the speedy passage of the 2020 budget.

The 2020 budget estimate is hinged on that oil benchmark of $57 per barrel, production of 2.18million barrels per day with an exchange rate of N305 to the dollar.

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).