Federal Government Proposes N9. 789 Trillion For 2020 Budget

The federal government has proposed a budget of N9,789 trillion for the 2020 annual budget.

The Minister for Finance, Zainab Ahmed hinted this on Tuesday while presenting the draft of the 2020 to 2022 Medium Term Expenditure Framework and Fiscal Strategy Paper in Abuja. She reeled out the figures (N10, 110, 193, 322, 738) for 2021 and (N10, 418, 391, 196, 907) 2022.


Speaking further, she said the government would start the deduction of the N614 billion budget support facility from state government accounts this month.


She noted that all states except Lagos, would start getting direct debit notifications from their monthly Federation Account Allocation Committee (FAAC) disbursements.
In her words:
“The N614 billion bailout funds to states is not going to form part of the revenue for funding the budget, it was a loan which was advanced by the CBN and the repayment will be made to the CBN.”


Last month, the Federal Government announced the setting up of a committee to facilitate the recovery of N614 billion given to the states.
Each of the benefitting state is expected to pay back the equivalent N17.5 billion.


She said that N650 billion was a conditional budget support provided by the CBN to help states pay salaries, gratuities and pensions.
The CBN provided the N650 billion in loans at nine per cent with a grace period of two years. The Federal Ministry of Finance helped in the disbursements with documented approval by the presidency.

from The nationonline