The federal government says it will propose a sum of nine-point-seven-nine trillion naira to the national assembly as total expenditure in the 2020 budget.
The amount which represents an increase of nine-point-seven percent over eight-point-nine trillion naira spending for 2019, is based on the projection of a proposed revenue of about seven-point-six trillion naira and a total proposed fiscal deficit component of about two-point-one trillion naira.
The minister of finance, budget and national planning, Zainab Ahmed, disclosed this in Abuja at a public consultation forum with civil society groups and agencies on the draft 2020-2022 medium term expenditure framework (MTEF), on Tuesday.
She said the budget will be proposed based on the assumption of an oil production capacity of two-point-one-eight million barrels per day, crude oil price of fifty-five dollars per barrel, against sixty dollars per barrel last year, and exchanged rate of three hundred and five naira to the dollar.
On the issue of deficit financing for the 2020 budget, Ahmed said the government plans to mobilize additional financing from the sale of government property, proceeds from privatization, sale of non-oil assets, increased revenue collection, multi-lateral and bilateral project-tied loans and new foreign and domestic borrowings.
She said the government has taken steps to block leakages in the system, through an October deadline given by President Muhammadu Buhari for all MDAs to implement the Integrated Personnel Payroll System (IPPIS). Ahmed added that workers in MDAs that fail to move to the IPPIS platform may not be paid their salaries from October.