Debt Service Takes 27% as Senate Passes Adjusted 2020 Budget

Debt Service Takes 27% as Senate Passes Adjusted 2020 Budget

Debt service accounts for more than 27% as the Nigeria passed the adjusted spending plan for fiscal year 2020 totaled ₦10.8 trillion into law.

The Senate at plenary on Thursday approved the revised 2020 budget forwarded to it for consideration by President Muhammadu Buhari.

The upper legislative chamber had, given the request expeditious consideration, immediately debated general principles of the fresh proposal along with the revised 2020-2022 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) which led to passage of MTEF/FSP.

It had referred the revised budget to the Senate Committee on Appropriation for further legislative input.

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The approval followed the presentation of a report of the Committee on Appropriation by its Chairman, Senator Barau Jibril (APC Kano), and consideration of same at the Committee of Supply.

Following the clause by clause consideration of the report at senate committee of supply, senate on reverting back to plenary, approved the 2020 revised budget as follows:

This authorise the issue from the Consolidated Revenue Fund of the Federation, the total sum of ₦10, 805,544,664,642.

Out of the amount, ₦422.775 billion was for Statutory Transfers, ₦2.951 trillion for Debt Service, ₦4.938 trillion for Recurrent (Non-Debt) Expenditure.

Meanwhile, the sum of ₦2.488 trillion was for contribution to the Development Fund for Capital Expenditure the year ending 31 December, 2020.”

President of the Senate, Ahmad Lawan, said that the revised budget was an important legislation, noting that the country was waiting for the passage of the bill.

He said the passage of the revised 2020 budget would make Nigerians feel the essence of government.

He said the senate would ensure value for money on every project in the revised budget, while urging various committees to ensure detailed oversight of the revised budget.

Reacting to the development, research consultants at LSintelligence Associates said the reason why Nigeria has failed to move forward is partly due to how budget is designed, and financed.

Debt Service Takes 27% as Senate Passes Adjusted 2020 Budget.