The federal government spent 41 per cent of the revenue generated in 2022 to service its N44.06 trillion debt, the Minister of Finance, Budget and National Planning,
Also, the government has extended the 2022 budget implementation by three months ending
The minister also said she is shocked by the recent downgrade of
Last weekend,
Ahmed made the disclosure yesterday at the weekly ministerial briefing in
The budget for 2022 as amended projected N18.1 trillion spending out of which N8.17 trillion deficit will be sourced through domestic borrowing.
But even more worrisome for the government is that 41 per cent of the revenue generated was spent to service
Personnel cost including pensions gulped 31 per cent while only 15 per cent was released for capital investments.
Ahmed said, "2022 fiscal outcomes impacted by oil revenue performance and you will also see that non-oil revenues have been on the rise. As at
"The federal government's share of oil revenues to fund the budget was N586.7bn representing 29.2 per cent performance while none-oil revenues totally N2.09trn representing an out-turn of 99.1 per cent compared to the budget projections.
"Non-oil revenues continue to out per from oil revenues. The Company Income Tax and the Value Added Tax as the top performers recording 129.8 per cent and 93.3 per cent of their respective targets.
"On the expenditure side, total expenditure to fund the 2022 budget as amended and also remember we had a supplementary budget was estimated at N18.1trn, however, as at
"The implementation of the 2022 budget has been extended for the capital to 31st of
She said the combined fiscal deficit for 2022 was estimated at N8.17trn with 54 per cent of the deficit financing to be obtained from domestic sources.
Recently,
The downgrade also affected the rating of nine major banks in
Borrowings from external sources to meet the 2022 budget deficit was no longer an option for the FG but domestic borrowing by the government is overcrowding the chances of businesses to borrow, experts have suggested.
According to Ahmed, the ministry was assigned 40 deliverables by
Ahmed revealed that to support domestic revenue mobilisation efforts, the revenues collected by the Federal Inland Revenue Service grew from N6trn in 2021 to N10.1trn in 2022.
"These are federation revenue and not federal government revenues. Of this N10trn, N4.,1trn is oil revenue while N5.96trn is non- oil revenue. So, these are federations revenue," she explained.
She said the ministry introduced the Finance Act as an annual tradition to support the annual budget in the delivery of the fiscal strategy of the FG.
She explained that the legislature has conveyed the Finance Bill 2022 for his approval to support the implementation of the 2023 budget.
The finance minister said, "The president has not been able to sign on it because there were two very significant provisions in the bill that the president wanted the
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