The Federal government of Nigeria on Wednesday announced a reduction in its 2020 budget expenditure and projections, check out the eight major cuts made in the 2020 budget as passed earlier;
1. Capital expenditures by MDA’s were slashed by N312 billion from projects approved in the 2020 budget, the amount represents a 20% cut off from capital projects.
2. A reduction of the budget oil production volume from 2.18 million barrels per day to 1.70 million barrels.
3. Reduction of projected budget benchmark price from $57 per barrel to $30. The exchange rate was also adjusted from N305/$ to N360/$.
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4. Projected oil revenue was reviewed downward from N7.67 trillion to N1.44 trillion.
5. The net non-oil revenue was also projected downward from N6.442 trillion to N5.84 trillion
6. Corporate tax and value-added tax contributions were slashed to N1.822 trillion and N.164 trillion down from the original N1.836 and 2.25 trillion respectively.
7. The redistributable Federal Government’s share of the Federation Account (52.68%) was reduced from N4.516 trillion to N1.648 trillion
8. Net ecological and derivation (after 10% transfer to NEDC) was reduced from N77.145 billion to N28.158 billion
Funds to be distributed to the three tiers of government from the federations account is expected to dip from N8.5 trillion to as low as N3.12 trillion.
The other arm of government, the National Assembly and the Judiciary are expected to independently determine the cuts to be made to their allocations.