Fuel subsidy to gulp N450bn in 2020 – Finance minister – TheNigerialawyer

Mrs Zainab Ahmed, the Minister for Finance, Budget and National
Planning says under-recovery of Premium Motor Spirit (PMS),
popularly referred to as fuel subsidy will gulp N450 billion in
2020.

She said this on Monday in Abuja, at the public presentation of
the 2020 budget proposals.

Ahmed said it was called ‘under-recovery’ because it was the
cost of operation of the Nigeria National Petroleum Corporation
(NNPC).

“We have a provision for under-recovery of PMS in the sum of
N450 billion. If you look at the Budget office website, it is in
the fiscal framework, which is an annexure to the budget.”

The News Agency of Nigeria (NAN), reports that President
Muhammadu Buhari had, on Tuesday, presented a budget proposal of
N10.33 trillion to a joint session of the National Assembly.

He put the Federal Government’s estimated revenue in 2020 at
N8.155 trillion, comprising oil revenue of N2.64 trillion, non-oil
tax revenues of N1.81 trillion and other revenue of N3.7
trillion.

Other estimates are N556.7 billion for statutory transfers,
N2.45 trillion for debt servicing and provision of N296 billion as
sinking fund.

Ahmed said that the overall budget deficit of N2.17 trillion
represents 1.52 per cent of the Gross Domestic Product (GDP) and
N1.64 trillion of it would be funded by both domestic and external
borrowing. (NAN)