THE Federal Government has proposed a 20 per cent cut in the 2020 budget on capital projects across ministries, departments and agencies in the sum of N312.82 billion.
Zainab Ahmed, Minister of Finance, Budget and National Planning, has presented before the National Assembly on Wednesday the proposal titled “2020 Capital Revised Adjustment”.
Recall that President Muhamadu Buhari had earlier set up a committee in March to be headed by the finance minister to review the crude oil budget benchmark.
Other members of the committee are Godwin Emefiele, Central Bank of Nigeria governor, Mele Kyari Group Managing Director NNPC and Clement Agba minister for state Budget and National Planning.
The ICIR earlier reported also in March the plans by the Federal Government to review the 2020 budget as oil prices and revenue shrink further due to the negative impact of the coronavirus.
The budget review became necessary following reduced revenue and crash in oil prices as a result of the Covid-19 pandemic, the minister showed in her document.
Other proposed changes to the budget include a reduction of the budget oil production volume from 2.18 million barrels per day to 1.70 million barrels.
The budget benchmark has also been reduced from $57 per barrel to $30.