The Federal Executive Council (FEC) has approved the proposed N13.08 trillion budget for the 2021 fiscal year.
The approval came at the weekly virtual FEC meeting presided over by President Muhammadu Buhari on Wednesday.
Speaking to State House Correspondents after the meeting, the Minister for Finance, Budget and National Planning, Mrs. Zainab Ahmed, said the oil production has been pegged at 1.86 million barrels per day (including 400,000 barrels of condensate) and the oil benchmark at $40 per barrel.
The minister, who was accompanied by Minister of State for Budget and National Planning, Clement Agba and the Minister for Information and Culture Alhaji Lai Mohammed, also said the projected Capital Expenditure for the year is N2.083 trillion, accounting for 29 percent of the total budget.
The minister stated that the budget would run on N4.48 trillion deficit with a revenue target of N7.9 trillion.
She said the budget is based on an exchange rate benchmark of N379/$. She noted that it targets three percent GDP growth and 11.95 percent inflation rate.
When asked if the three percent estimated growth was realistic considering the impact of COVID-19 on world economies, the Ahmed responded that the policies put in place to ensure inclusive growth while stimulating the economy should produce the desired results.
Buhari is expected to present the budget to the National Assembly in October.