Finance Minister explains how FG will fund 2021 Budget

The Minister of Finance, Budget and National Planning, Zainab Ahmed has said that the Federal Government has identified the sources of revenue to fund the N11.86 trillion budgets proposed for the 2021 fiscal year.
The minister who spoke during the presentation of the draft 2021–2023 medium-term expenditure framework (MTEF) and fiscal strategy paper (FSP), also spoke on the performance of the 2020 Budget between January and May.
Speaking during the presentation on Friday in Abuja during a virtual consultative session with civil society organisations, organised private sector and the general public, the Minister said part of the funding for the budget would come from the export of 1.86 million barrels per day oil output at about $40 per barrel.
She pointed out that net accrual to the Federation Account of N6.67 trillion (after 0.5% transfer to Police Trust Fund), total oil revenue, after all costs, deductions and derivations would come to about N4.09 trillion.
She further revealed that the Federal Government expects to realise about N5.46 billion as net solid minerals revenue after payment of derivation; N1.41 trillion as net corporate tax; N1.05trillion as Nigeria Customs revenue, and N124.8billion as revenues from special levies.
According to her, unspecified revenues would be expected from the dividend payment by the Nigeria LNG on the federal government equity holding in the multi-billion dollar investment.
The Federal Government expects to earn about N3.52trillion as its share of the monthly allocation from the Federation Account (52.68%), in addition to about N244.5billion from its share of the value-added tax (VAT) Pool Account for the year.
To keep the total fiscal deficit of about N5.15trillion within the proposed 3% ceiling over the medium term, the Minister said the government was committed to finding new revenue sources, while taking steps to ensure a reduction in the cost of governance.
“In furtherance of our (government’s) objective of greater comprehensiveness and transparency in the budget process, the FGN 2021 Budget will reflect the revenues and expenditures of all significant government-owned enterprises (GOEs) (excluding the Nigeria National Petroleum Corporation), not just as in the 2020 budget”, the Minister said.
On the revenue performance in the revised 2020 Budget, Ahmed said on a pro-rata basis out of about N5.4trillion recorded as retained revenues in the approve appropriation, which was revised to N2.6trillion for the period between January and May, only N1.48trillion was actually realised.
The realised revenue, the Minister noted, was below the revised target by about N1.14 trillion, or 44%.
In terms of oil revenue, about N1.014 was approved in the 2020 Appropriation, which was revised to about N422.4billion, as a result of the impact of the coronavirus pandemic on the global market, which resulted in the crash of crude oil prices at the international oil market.