Federal Government on Tuesday disclosed that it has spent N7.09 trillion as at the end of the third quarter of 2020 fiscal year, just as it unveiled p
Federal Government on Tuesday disclosed that it has spent N7.09 trillion as at the end of the third quarter of 2020 fiscal year, just as it unveiled plans to introduce additional 2.5% Value Added Tax (VAT) rate in 2021 fiscal year as part of efforts aimed at increasing revenue generation.
Minister of Finance, Budget and National Planning, Dr Zainab Ahmed disclosed this while presenting the overview of the 2020 fiscal outcomes and budget implementation/2021 budget defence to the House Committee on Finance, chaired by Hon. James Faleke.
“The 2021 budget of the Ministry of Finance is about automation to enhance the efficiency of revenue collection in the agencies. Very soon we will be. Currently, we have an automation process that enables us to capture the revenue. We have monthly reconciliation exercise in all the major agencies to confirm that the revenue as reported are complete. We set up the National Social Investment Programme, N279.10 billion has so far been released,” the Minister noted.
According to the document, some of the presidential directives to be adopted include: capping cost-to-revenue ratio of Government Owned Enterprises (GoEs) to a maximum of 60% to 70%; deregulation of price of petroleum product, ongoing verification exercise with IPPIS, implementation of service-based tariffs, the introduction of tax expenditure statement in 2021-2023 MTEF to dimension the cost of tax waivers; support the NESP developed under the leadership of the Vice President; introduction of N2.3 trillion stimulus focus on job-intensive projects and $3.4 billion IMF Emergency Support to mitigate the effects of COVID-19.
