FG generates 73% of its target turnover for 2021
Nigerian Minister of Finance, Budget and National Planning Ms. Zainab Ahmed said the federal government has generated 3,933 billion naira, or 73 percent of its revenue target of 7,900 billion naira for 2021.
She made the disclosure in Abuja on Friday, during the public presentation and breakdown of the Federal Government Appropriations Bill 2022.
The Nigerian News Agency (NAN) reports that President Muhammadu Buhari on Thursday presented the N16.39 trillion appropriation bill 2022 in Abuja at a joint session of the National Assembly.
According to Buhari, the total income available to finance the 2022 federal budget is estimated at 10.13 trillion naira, including grants and aid of 63.38 billion naira, as well as the revenues of 63 state-owned enterprises (GOE). .
Described as an economic growth and sustainability budget, it was based on a conservative benchmark oil price of $ 57 per barrel with an estimate of daily oil production of 1.88 million barrels per day.
The minister said that the exchange rate of 410.15 naira per US dollar and the projected growth rate of gross domestic product (GDP) of 4.2 percent and the inflation rate of 13 percent were also took into consideration.
Ahmed said that of the revenue generated for 2021, the federal government’s share of oil revenue was N754.2 billion, accounting for 56.3% of the performance of the prorated sum.
She added that non-oil tax revenue stood at 1.15 trillion naira, or 115.7%, which is higher than what was targeted in the 2021 budget.
On the expenditure side, the minister said that 8.14 trillion naira was spent on the budget in proportion to 9.71 trillion naira, adding that it included estimates of expenditure by public enterprises (GOE), but excluded project-related loans.
Giving a breakdown of spending, Ahmed said 2.87 trillion naira was spent on debt service and 2.57 trillion naira on personnel costs, including pensions, while 1.79 trillion naira was spent on debt service. naira were spent on investment projects.
Speaking on the 2022 Appropriation Bill, Ahmed said the 16.39 trillion naira he was proposed to spend was 12.2% above the initial Medium Term Expenditure Framework (MTEF) of 2022. .
She said of this amount, N10132 trillion is expected to be generated in the form of revenue and N626 trillion, or 3.39% of GDP, as the deficit would be financed mainly by borrowing.
According to her, to finance the deficit, 2.51 trillion naira would come from domestic sources, 2.51 trillion naira from foreign borrowing, 1.16 trillion naira from multilateral and bilateral lending and 90.7 billion naira. of privatization proceeds.
For revenues, she said 3.53 trillion naira would come from oil, 2.13 trillion naira from taxes, 1.816 trillion naira from self-employment, 1.728 trillion naira from withheld GOE and 924.31 billion naira from ‘other sources of income.
Regarding spending, she said recurrent spending, which is not debt related spending, was estimated at 6.83 trillion naira, while overall investment spending was set at 5. 35 trillion naira and 3.61 trillion naira in debt service, while 292 naira. 7 billion would allow the removal of maturing bonds from local contractors and suppliers.
Speaking on critical sector allocations, Ahmed said the defense and security sector at 15 percent would receive 2.41 trillion naira, infrastructure at 8.9 percent 1.45 trillion naira. and the education sector 7.9 percent of the budget to 1.290 trillion naira.
For the health sector, 5 percent of the total budget to 820.2 billion naira and social development and poverty reduction programs to 5.3 percent of the budget would get 863 billion naira.
Ahmed, however, said the 2022 budget is expected to further accelerate the recovery of the country’s economy.
“We are optimistic about achieving more inclusive GDP growth as we focus on achieving our goal of massive job creation and lifting millions of our citizens out of poverty.
“The early adoption of the 2022 budget for implementation from January 1 will significantly contribute to the achievement of the government’s macro-budgetary and sector objectives. “
She said that although revenues currently remain the country’s fiscal challenge, the government remains committed to effectively implementing Strategic Revenue Growth Initiatives (SRGIs).