VICTORIA ONU
THE Federal Government is planning to spend N13.98trn in the 2022 fiscal year.
Details of the spending is contained in the Medium Term Expenditure Framework/Fiscal Strategy Paper for 2022-2024.
The Minister of Finance, Budget and National Planning, Zainab Ahmed, spoke on the spending during a public consultation of the Medium Term Expenditure Framework/Fiscal Strategy Paper for 2022-2024.
The preparation of the budget estimates for Ministries, Departments and Agencies usually takes into consideration the Medium Term Policies/Strategies contained in the Expenditure Framework and Fiscal Strategy Paper, which is the Federal Government’s pre-budget statement.
The MTEF/FSP outlines the development priorities of the Federal Government for the period covered.
The 2022 planned spending shows that the N13.98trn represents an increase over the N13.58trn approved in the 2021 budget.
A breakdown of the expenditure shows that debt service is expected to gulp N3.6trn in 2022 as against N3.12trn in 2021, while non-debt recurrent expenditure is projected at N6.2trn in 2022 as against N5.64trn in 2021.
However, the Federal Government slashed the proposal for capital expenditure to N3.61trn in 2022, from the N4.37trn approved in 2021.
For the revenue side, the government is proposing to generate the sum of N8.35trn in 2022 as against N7.98trn for 2021.
The revenue for 2022 is expected to be generated thus: oil revenue, N3.15trn; NLNG Dividend, N184.03bn; mining, N2.91bn; non oil taxes, N2.13trn, while independent revenue from government agencies is expected to contribute the sum of N1.08trn.
The minister said the budget would be prepared based on an oil production volume of 1.88 million barrels per day with a benchmark oil price of $57 per barrel, at an exchange rate of N410.15 to a dollar.
She also said that the government had so far released the sum of N973.13bn for the implementation of projects contained in the 2021 budget.
President Muhammadu Buhari had signed the 2021 Appropriation Bill of N13.588trn into law after it was passed on December 21, last year, by the Federal Government.
The 2021 Budget, which was submitted by the President to a joint session of the National Assembly on October 8, 2020, was increased from N13.08trn to N13.58trn, representing a N505bn increase.
The 2021 budget, according to the government, is aimed at accelerating the pace of Nigeria’s economic recovery, promoting diversification, enhancing competitiveness, and ensuring social inclusion.
Buhari had, while presenting the budget, said the proposed N13.08trn expenditure comprised Capital Expenditure of N3.85trn, Non-debt Recurrent Costs of N5.65trn; Personnel Costs of N3.76trn; Pensions, Gratuities and Retirees’ Benefits of N501.19bn; Overheads of N625.5bn; Debt Service of N3.124trn; Statutory Transfers of N484.49bn; and Sinking Fund of N220bn (to retire certain maturing bonds).
The President had said the 2021 Budget deficit, inclusive of Government Owned Enterprises and project-tied loans, is projected at N5.2trn, adding that this represented 3.64 per cent of the budget size.
The aggregate revenue available to fund the 2021 budget is projected at N7.89trn, which is 35 per cent higher than the 2020 revised budget of N5.84trn.
The Finance Minister said that from the expenditure, N4.86trn, representing 92.7 per cent of the prorated budget, had been spent.
Out of this amount, she said that N1.8trn was spent for debt servicing, which represented 37 per cent of expenditure, while N1.5trn was spent on personnel, including pensions.
