The Federal Government has suffered a 38 per cent shortfall in the first five months of the year, according to its projected revenue in the 2020 budget.
The shortfall represents a loss of N1 trillion.
This was disclosed in a 2021 Budget Call Circular from the country’s budget office addressed to all ministries, departments and agencies for the preparation of the 2021 budget proposal on Monday.
According to the circular, the Federal Government’s actual revenue as of 30 May was N1.62 trillion, which is 62 per cent of the N2.62 trillion pro-rata revised budget.
“The shortfall of 38 per cent is attributable to the under performance of both oil and non-oil revenue sources,” the document stated.
The circular also stipulated the guidelines and instructions that must be followed by all its ministries, departments and agencies while preparing their 2021 budget proposal.
It stated that all MDAs should ake into consideration the 2023 medium-term policies/strategies contained in the 2021 Expenditure Framework and Fiscal Strategy Paper while preparing their 2021 budget estimates.
“Further to this, the Federal Government’s annual budget shall be prepared using the Zero-Based Budgeting approach and in line with the government’s policy thrust, as articulated in the Nigeria Economic Sustainability Plan, as well as other relevant circulars,” it said.
The circular said in accordance with the 2021-2023 Medium-Term Expenditure Framework and Fiscal Strategy Paper, the aggregate government revenue available for budget for the fiscal year 2021 was projected at N7.49 trillion.