The Federal Government has notified the National Assembly of a fresh plan to borrow 4.28 trillion naira to fund the 2021 budget, as countries debt profile will hit 32.91 trillion naira.
It was reported that Nigeria’s debt stocks currently stood at 28.63 trillion naira at the first quarter 2020.
It also gathered that the planned loan of 4.28 trillion naira was contained in the Medium Term Expenditure Framework and Fiscal Strategy Paper, MTEF/FSP forwarded to the Senate Tuesday by President Muhammadu Buhari for approval. As the final draft of the budget would be prepared based on the parameters and fiscal assumptions of the approved 2021-2023 MTEF/FSP.
The Federal Government in the document projected the sum of 12.65 trillion naira for the 2021 budget and 5.16 trillion naira as budget deficit for 2021 up from 4.98 trillion in the 2020 budget.
The document showed that the 5.16 trillion naira deficit represents 3.62 per cent of estimated Gross Domestic Product, GDP, above the threshold of 3 per cent stipulated in the Fiscal Responsibility Act 2007.