Federal Government slashes 2020 Budget By N312bn

The federal government of Nigeria has slashed N312bn from capital projects in the 2020  budget.

This was occasioned by the global fall in oil price and the outbreak of Coronavirus in Nigeria and other parts of the world.

A copy of the revised budget showed that there was a 20 per cent cut on capital projects across ministries, departments and agencies to around N312,820,542,675.

Naija News also understands that the national assembly and judiciary will determine the cuts to be made to their allocations.

Other proposed changes to the budget include a reduction of the budget oil production volume from 2.18 million barrels per day to 1.70 million barrels.

The projected budget benchmark price from $57 per barrel to $30.

The exchange rate was also adjusted from N305/$ to N360/$.

The projected oil revenue was reviewed downward from N7.67 trillion to N1.44 trillion.

The net non-oil revenue was also projected downward from N6.442 trillion to N5.84 trillion with corporate tax and value-added tax expected to contribute N1.822 trillion and N.164 trillion down from the original N1.836 and 2.25 trillion respectively.

Funds to be distributed to the three tiers of government from the federations account is expected to dip from N8.5 trillion to N3.12 trillion.

No adjustments were made to the debt service leaving the budgeted N2.45 trillion.

New borrowings by the government was adjusted from N1.59 trillion to N4.43 trillion with incremental borrowing projected at N2.84 trillion.