The President, Muhammadu Buhari,on Thursday, presented to the National Assembly, N13.08tn budget estimates for 2021 with N3.12tn (23.85 per cent) earmarked for debt servicing.
Buhari, who said the nation’s economy might relapse into recession, stated that N3.85tn (29.43 per cent) was voted for capital projects, while personnel costs (salaries and allowances) would gulp N3.76tn (28.75 per cent).
With 23.85 per cent allocated for debt serving and personnel costs gulping 28.75 per cent, it means 52.60 per cent of the budget or N6.88tn will be spent on both items next year.
Giving other highlights of the appropriation bill, Buhari said the budget was premised on daily crude oil production of N1.86m and oil price of $40 per barrel.
The President, who tagged the proposed fiscal document, ‘Budget of Economic Recovery and Resilience’, assured Nigerians that his regime would do everything possible to take the economy out of recession in 2021.
The President said, “The Nigerian economy is currently facing serious challenges, with the macroeconomic environment being significantly disrupted by the coronavirus pandemic.
“The Real Gross Domestic Product growth declined by 6.1 per cent in the second quarter of 2020. This ended the three-year trend of positive, but modest, real GDP growth recorded since the second quarter of 2017.
Meanwhile, economic and financial experts have suggested swift implementation of a combination of fiscal, structural and investment policies to reduce the adverse effects of the looming second recession and get the economy on the path of a quick recovery.