In this article, we will be discussing the national budget and updates on the economy. We will also be discussing how it affects you.
A budget is simply a plan stating how much you hope to make and how much you plan on spending within a given period.
The Nigerian 2020 budget was approved and signed as at December 2019, but as a result of the ongoing pandemic, it is currently being reviewed to reflect the current financial situation of the nation.
In this post I will be breaking down the budget into simple terms to help you understand what the approved budget is.
| What we expect to earn | N8.42 Trillion |
| What we expect to spend | N10.59 Trillion |
| Deficit | N2.18 Trillion |
Therefore, we plan on spending N2.18 trillion more than we hope to earn. The government is also planning to source for the outstanding sum by borrowing from internal and external sources According to the minister of Finance.
It is also worthy to note that in previous years we have not been able to earn as much as we planned to, and with the current epidemic the income will be far less than what was anticipated.
How do we plan on making N8.42 Trillion?
| Oil Revenue | N2.64 Trillion |
| Non-oil revenue | N1.81 Trillion |
| Other Revenue | N3.97 Trillion |
How do we Plan on spending N10.18 trillion?
| Statutory transfers to Government agencies | N560 Billion |
| Sinking Fund | N273 Billion |
| Capital Expenditure | N2.47 Trillion |
| Special Intervention | N350 Billion |
| Debt Servicing | N2.45 Trillion |
| Recurrent Expenditure | N4.49 Trillion |
How to create a budget for your business
From the above we can see that the government is overspending and they have been doing so for a very long time.
With the current crash in the price of crude oil, the expected revenue from oil will be badly hit and they are currently seeking loans from IMF to cushion the effect. They are also making cuts to the budget.
Drop a comment below with your thoughts on the budget, lets discuss.
Figures derived from yourbudgit.com
