Presidency reviews approved 2020 budget

Here is a review of the 2020 budget approved by the Nigerian Presidency:

Overview

The 2020 budget, also known as the "Budget of Sustaining Growth and Job Creation", was presented by President Muhammadu Buhari to the National Assembly on October 8, 2019. The budget was approved by the National Assembly on December 11, 2019, and signed into law by the President on December 17, 2019.

Key Highlights

  1. Total Budget: The total budget for 2020 is N10.59 trillion, which represents a 12.5% increase over the 2019 budget.
  2. Recurrent Expenditure: Recurrent expenditure, which includes salaries, overheads, and other operational costs, accounts for 74.5% of the budget, amounting to N7.86 trillion.
  3. Capital Expenditure: Capital expenditure, which includes investments in infrastructure, agriculture, and other sectors, accounts for 25.5% of the budget, amounting to N2.73 trillion.
  4. Sectoral Allocation:
    • Education: N1.14 trillion (10.7% of the budget)
    • Health: N1.03 trillion (9.7% of the budget)
    • Infrastructure: N1.43 trillion (13.5% of the budget)
    • Agriculture: N134.4 billion (1.3% of the budget)
    • Defence: N314.8 billion (3.0% of the budget)
  5. Revenue Projections: The government projected a revenue of N8.39 trillion for 2020, with a deficit of N2.20 trillion.
  6. Fiscal Discipline: The budget aims to promote fiscal discipline by reducing the deficit-to-GDP ratio from 2.3% in 2019 to 1.9% in 2020.

Challenges and Concerns

  1. Revenue Shortfall: The government's revenue projection is based on assumptions that may not materialize, which could lead to a revenue shortfall.
  2. Fiscal Discipline: The budget's fiscal discipline measures may be challenging to implement, particularly in a year when the government is facing significant revenue challenges.
  3. Infrastructure Development: The budget's allocation to infrastructure development is insufficient to address the country's infrastructure needs.
  4. Social Sector: The budget's allocation to the social sector, including education and health, is inadequate to address the country's social challenges.

Conclusion

The 2020 budget approved by the Nigerian Presidency is a mixed bag, with some positive aspects, such as the increased allocation to infrastructure and agriculture, but also some concerns, such as the revenue shortfall and inadequate allocation to the social sector. The government's ability to implement the budget's fiscal discipline measures and address the challenges facing the country will be crucial to achieving its development goals.