The Nigerian Government says the 2023 budget proposal is N19.76 trillion, with a deficit of N11.3 trillion.
This was disclosed by Minister of Finance, Budget and National Planning, Dr Zainab Ahmed, on Monday during a sitting of the House of Representatives Committee on Finance on the 2023-2025 Medium-Term Expenditure Framework.
According to the News Agency of Nigeria, the minister added that the Federal Government expects a revenue of N8.46 trillion for 2023.
What the minister is saying
Ahmed, while giving a breakdown of the revenue stated that government was projecting revenue of N8.46 trillion for 2023. She added that N1.9 trillion would come from oil-related sources while the balance would come from non-oil sources.
She added that the budget would be premised on $70 per barrel of crude oil and an exchange rate of N435.57 to the dollar, citing that oil production for 2023 was pegged at 1.69 million barrel per day; a real GDP growth rate of 3.7% and inflation rate of 17.16% for the year.
The Minister also stated that petrol subsidy would remain up to mid-2023 sequel to the 18-month extension announced early in 2021 and that N3.36 trillion would be provided to pay the subsidy in 2023.
“We planned that 60% of revenue would be spent on debt servicing, but in some months, the ratio went up to 90%.
“We have been able to, consistently without fail, service our debt and we do not have any projections even in the near future that we will fail.
“We actually follow the Medium Term Debt Management Strategy very strictly; the debts are not taken haphazardly and they are planned.
“They are appropriated and then we borrow against appropriation,’’ she stressed.
She urged that tighter enforcement of the performance management framework for Government-owned Enterprises would significantly increase operating surplus/dividend remittances in 2023, citing that there were no projections that Nigeria would default on her debt services in the nearest future.
“We do have pressure in terms of the ratio because when revenue is underperforming, it means we have problems being able to service all of government’s (debts). The liquidity situation is very challenging.
“That is why what we need to do, including the parliament, is to work towards increasing revenue performance,” she added.
In case you missed it
President Muhammadu Buhari in December 2021 signed into law the 2022 Appropriation bill of N17.126 trillion, representing an increase of N735.85 billion over the initial Executive Proposal of N16.391 trillion which was presented by the president.
The National Assembly later in April passed amendments to the 2022 Appropriation Act (Federal Budget). The revised figure represents an increase of N193 billion from N17.12 trillion in the earlier signed 2022 budget.
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