The Central Bank in its Monthly Economic Report for October released yesterday revealed that the Federal Government generated N278.79billion a 21.6% drop from its budget expectations. It also recorded a 26.4% drop in actual expenditure when compared to budget. According to the CBN;
At N278.79 billion, the estimated Federal Government retained revenue for October 2014 was below both the monthly budget estimate and receipts in the preceding month by 21.6 per cent, and 1.4 per cent, respectively. Of the total amount, the Federation Account accounted for 78.2 per cent, while SURE-P, FGN Independent Revenue, Revenue Augmentation , VAT Pool Accounts and “others” accounted for 5.8, 5.0, 4.9, 3.4 and 2.7 per cent, respectively.
At N320.73 billion, total estimated expenditure for October 2014 was lower than both the monthly budget estimate and the level in the preceding month by 26.4 and 0.7 per cent, respectively. A breakdown of total expenditure showed that the recurrent expenditure accounted for 84.7 per cent, while the capital expenditure and transfer components accounted for the balance of 7.2 and 8.1 per cent, respectively. Non-debt obligations accounted for 76.7 per cent of the total recurrent expenditure, while debt service payments accounted for the balance of 23.3 per cent.
The revenue accruing to the Federal Government also dipped by a whopping 18% against budget and 10.6% Month on Month representing the lowest revenue accruing to the country since January 2014. Gross oil receipts made up 63.2% of total revenue whilst the balance was for non-oil receipts. Non-Oil receipts also recorded a month to month drop of 3.9% and 11.5% drop against budget. The CBN attributed this drop to a fall in receipts from corporate tax and customs/excise duties.
Government revenues are expected to dip in the final quarter of the year due to the fall in the price of oil.
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