The Federal Government has slashed the 2020 budget by N1.5 trillion in order to cushion the impact of the Coronavirus pandemic on the economy.
This was proposed by the committee that was set up by the Federal Government to look into the Coronavirus pandemic.
The committee is chaired by the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed. Other members are the Minister of State, Petroleum Resources, Mr Timipre Sylva; Governor of the Central Bank of Nigeria, Mr Godwin Emefiele; and the Group Managing Director of the Nigerian National Petroleum Corporation, Mr Mele Kyari.
Consequently, about N457 billion, the government calls “under-discovery”, which is money reserved for fuel importation, is also part of the N1.5 trillion.
Ahmed stated, “What we have done is that we have written every ministry and given them guidelines on how these adjustments will be made to enable us to have detailed input from the ministries.
“But, I can just say that the budget cut is about N1.5tn; the reduction in the size of the budget. And this includes the N457bn from the PMS under-recovery.
“On how much it will affect the federally-funded upstream projects; it is about 25 per cent cut. The exact amount, we will work out when we get input from the ministries, departments and agencies.”
It can be recalled that the N10.59tn budget, which was signed by Buhari in December, came with a deficit of over N1.8tn. It had a provision of N56.4bn for statutory transfers; debt servicing, N2.7tn; recurrent expenditure, N4.84tn; and capital expenditure, N2.46tn.