WED, JUN 10 2020-theG&BJournal-The Federal House of Representatives today approved the Federal Government’s (FG) request to borrow $5.513 billion from external sources to finance the 2020 budget deficit. It also passed the Appropriation (Amendment) Act 2020-the revised 2020 National Budget.
The FG requested to borrow $3.4 billion from the International Monetary Fund (IMF), $1.5 billion from the World Bank, another $500 million from the African Development Bank (AfDB) and $113 million from the Islamic Development Bank.
President Muhammadu Buhari in a letter to the House of Reps in late May 2020, made the request for the loans to finance the revised 2020-2022 mid-term expenditures framework (MTEF) and the 2020 Budget.
Measures taken in the revised 2020 budget includes increase in debt service, reduction in capital allocations except for the health sector, cuts in statutory transfers and zero provision for some projects in the capital component.
Meanwhile, the House approved the increase in total recurrent expenditure by N4 billion to cover for Resident Doctors under service wide votes. The increase brings the total recurrent expenditure to almost N5 billion.
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