FGN’S 2020 BUDGET BREAKDOWN Sinking Funds Statutory Transfer 296bn N556bn Deficit 2.18tn Debt Service N2.453tn Non-Oil Revenue Recurrent N1.81tn Expenditure N4.88tn IN OUT Other Revenue Sources 3.7tn* • Overall budget deficit of N2.175 trillion in 2020 represents 1.52% of GDP. MDA’s Capital • Projected deficit within threshold stipulat- Oil Revenue Expenditure ed in the Fiscal Responsibility Act (FRA) 2007. N2.64tn N2.145 • Budget deficit is to be financed mainly by borrowing N1.594 trillion. Expenditure Revenue • Domestic sources - N744.99 billion • Foreign sources (gradual shift away from 8.15tn 10.33tn commercial to more concessionary financ- * Includes Dividends, Recoveries/fines, Independent ing) - N850 billion Revenue, Signature Bonus etc Overview of the revenue framework The aggregate revenue available to fund the 2020 budget is projected at N8.155 trillion (7% or N561.2 billion more than the 2019 Budget of N7.59 trillion). To promote transparency, account- ability & comprehensiveness, the bud- get of 10 major GOEs are integrated in the FGNs budget w.e.f 2020 Overview of the Expenditure framework . 2020 FGN spending (inclusive of GOEs/PT Loans) is projected to be N10.33 trillion. Recurrent (non-debt) spending expected to rise by 11.28%, from N4.39 trillion in FY2019 to N4.88 trillion (reflecting increases in salaries & pensions including provisions for implementation of the new minimum wage) . Capital Expenditure (Inclusive of Transfers, GOEs Capital & Project-tied loans) as % of FGN Expendi- ture is 24% . At N2.45 trillion, debt service is 23.74% of planned spending . Provision to retire maturing bond to local contrac- tors increased by 169.09% from N110 billion in FY2019 to N296 billion. The Strategic Revenue Growth Initiatives Recently, the HMFBNP launched the Strategic Revenue Growth Initiatives (SRGI) that aim to boost reve- nue generation in order to meet our targeted revenue to GDP ratio of 15% as set out in the ERGP… 1 2 3 Thematic Areas Achieve sustainability in revenue Generation: Identify new and enhance enforcement of exist- Build a sustainable revenue generation ecosys- ing revenue streams: Grow revenues by imple- tem by ensuring resilient and optimal perform- menting new taxes, broadening the tax base ing revenue streams whilst applying the right and enabling strategic investments that spur incentives, safeguards, accountability and per- economic growth formance management systems Achieve cohesion (people and tools) 3 Implement a revenue generation operating model that enhances col- laboration, synergies, capacity building, use of data, celebrates meritoc- racy and eliminates leakages Cross-cutting Initiatives that provide the legal enablers & other enablers for effective implementation &perfor- mance management of SGRI Some projects in the 2020 budget Transport Housing Aviation • N67.17 billion Counter •N17.5 billion for Federal Gov- •N1 billion for construction of part funding for Railway ernment National Housing Pro- Terminal Building at projects including gramme Enugu Airport 1. Lagos-Kano (Ongoing) •N30 billion for Social Housing •N10 billion for construction of 2. Port Harcourt- Maiduguri Scheme (Family Homes Fund) Second Run-Way at Nnamdi 3. Ajaokuta-Itakpe-Aladja (Warri ) Azikiwe International Airport Abuja (Ongoing) SDGs Education •N40 billion for SDGs Intervention Power • N3 billion Provision of Security Programmes/Conditional Grants •N2 billion set aside as fund for Infrastructure in 104 Colleges •N8.37 billion for other SDGs the Mambilla Hydro Power proj- • N2 billion for take off grant for Projects ect the establishment of 6 Federal •N200 million for construction of Science & Technical Colleges Niger Delta 215MW LPFO/ Gas Power station (FSTCs) •N500 million for the construc- Kaduna • About N4.83 billion for various tion and surpervision of Gber- •N150 million for Afam Fast Power Scholarship allowances egolor - Ogriagbene Road, Programme Accelerated Gas • N1.61 billion for the payment Delta State and Solar Power Generation of over 5,000 Federal Teachers •N1.5 billion for the Construction Scheme Allowance of Elele – Owerri Road Rivers/Imo Special Intervention Programme States •N430 billion for FGN Special Inter- Works Cont’d •N5.67 billion for various sections vention Programme (including Social •Over N220 billion for the construction of the East-West Road Housing – N30bn, Home Grown School and reha Feeding Programme, Government bilitation of roads in every geo-political Economic Empowerment Programme, zone of the country, such N-Power Job Creation Programme, as: Works Cont’d Conditional Cash Transfers, etc) •Construction of Kaduna Eastern By- Dualization of Obajana Junction •The NSIO is now domiciled in the pass – Benin Phase II, Sections I-IV Ministry of Humanitarian Affairs and •Abuja – Kano Dual Carriageway Disaster Management & Social Devel- •Dualization of Odukpani – Itu – Ikot Dualization of Sapele – Ewu opment Ekpene Road Road Sections I&II •Construction of Kano Western Bye Pass •Abuja – Abaji •Suleja – Minna Road •Rehabilitation & Expansion of Lagos - Industry, Trade & Investment Agriculture & Rural Development •Over N110 billion for the construc- •Special Economic Zone Projects •Over N11 billion for Promotion tion and rehabilitation of roads in ev- N14 billion for ongoing and and Development of Value Chain ery geo-political zone of the country, planned Special Economic Zone across in more than 30 different such as: Projects across the geopolitical commodities •Counterpart Funding for the Dual- zones to drive manufacturing/ •N3.97 billion for Veterinary and ization of Makurdi - Enugu Road exports. Pest Control Services •Counterpart Funding for the Dual- • Construction/Provision of Road •N8.20 billion for Rural Roads And ization of Akwanga – Jos - Bauchi - for Ikpokri Energy City Project Water Sanitation Gombe Road • Completion of Lekki Model Tex- •N2.01 billion for National Grazing •Reconstruction of the Outstanding tile and Garment Industrial Park Reserve Development Sections of Benin – Ofosu – Ore – • Provision of Infrastructure at •N813 million for Mechanization Ajebandele - Shagamu Expressway Brass Free Zone, Bayelsa State •N1.48 billion for Livelihood Im- •Construction of Bodo - Bonny Road • Construction of Textile & Gar- provement Family Enterprise (Life) •Pavement Strengthening and As- ment Park, Lekki Programme phalt Overlay of Ajebandele - Ijebu • Construction of Special Eco- •N2.86 billion for Food and Strate- Ode - Shagamu Road nomic Zone (SEZ) Sokoto gic Reserves •Construction of Oju/Loko - Oweto • Construction of Special Eco- •N1.81 Billion for Agribusiness and Bridge to link Loko and Oweto nomic Zone (SEZ), Makurdi Market Development • Dualization of Ilorin – Jebba - Water Resources Regional Interventions •N1.67 billion provisioned for the Hawul inter basin water •N65 billion for reintegration of transformed ex-militants transfer dam project under the Presidential Amnesty Programme. •N700 million for Zungeru Wushishi Water Supply •N37.83 billion for the North East Development Commission •N1.6 billion for Partnership for Expanded Water, Sanitation (NEDC) and Hygiene (PEWASH) •N80.88 billion for the Niger Delta Development Commis- •N1 billion for Special Intervention for North East and IDPs - sion (NDDC) Potable of Portable Water •Over N30 billion for water supply, rehabilitation of dams, and irrigation projects nationwide TOP 12 MDA CAPITAL ALLOCATIONS MINISTRY OF POWER FEDERAL MINISTRY OF (Includes PSRP Transfer to NBET) TRANSPORTATION 127.67bn 123.07bn FEDERAL MINISTRY OF WORKS & HOUSING FEDERAL MINISTRY OF AGRICULTURE FEDERAL MINISTRY OF WATER & RURAL DEVELOPMENT RESOURCES 259.2bn MINISTRY OF DEFENCE 79.79bn 78.34bn 99.87bn FEDERAL MINISTRY OF INDUSTRY, TRADE AND FEDERAL INVESTMENT MINISTRY OF FEDERAL MINISTRY OF HUMANITARIAN 41.34bn EDUCATION FEDERAL MINISTRY OF HEALTH AFFAIRS, DISAS- FEDERAL TER MANAGE- (Includes UBEC) MINISTRY OF (Includes BHCPF) MENT & SOCIAL FEDERAL MINISTRY OF SCI- DEVELOPMENT AVIATION ENCE AND TECHNOLOGY 162.74bn 90.98bn 45.45bn 53.85bn 37.55bn *FMoH Includes Basic healthcare provision fund, FME includes UBEC, FMP includes PSRP transfer to NBET,Fed. Min. of Humanitarian Includes provision for Social Investment CONCLUSION ▪ As mentioned previously, key reforms such as the Strategic Revenue Growth Initiative (SRGI) will be imple- mented with increased vigour to improve revenue collection and expenditure management. ▪ In furtherance of our objective of greater comprehensiveness and transparency in the budget process, the FGN budget from 2020 will reflect the revenues & expenditures of GOEs and the multi-lateral/bi-lateral project-tied loans and related expenditures. ▪ Achieving fiscal sustainability and macro-fiscal objectives of government will require bold, decisive and urgent action. Government is determined to act as may be required. ▪ We welcome citizens input and participation throughout the budget implementation phase. The detail budget document is currently available on the websites of the Budget Office of the Federation and the Federal Ministry of Finance, Budget and National Planning.