The Federal Government has so far released the sum of 4. 7 trillion naira to finance expenditure in the 2022 budget. Out of the 4.7 trillion naira spending, the government released a total of 1. 9 trillion naira for debt service while personnel costs and pensions gulped the sum of 1. 2 trillion naira.
This was disclosed by the Minister of Finance, Budget and National planning, Dr. (Mrs) Zainab Shamsuna Ahmed, at a Public Consultative Forum, on the 2023-2025 Medium-Term Fiscal Framework which held in Abuja on Thursday, July 21, 2022.
Speaking at the event, the minister further explained that the balance of N773.63bn was spent by the Federal Government on capital projects.
The breakdown of the 17 trillion naira 2022 budget which was signed into law on December 31st last year by President Muhammadu Buhari include; 869 billion naira for statutory allocation, 3. 8 trillion naira for debt servicing, 6.9 trillion naira and 5. 4 trillion naira for recurrent and capital expenditure respectively.
On subsidy, Zainab Ahmed said the Federal Government will make provision for subsidy in 2023 to the tune of N6.72 trillion.
She stated that the government has projected fiscal outcomes in the medium term, under two scenarios based on the underlying budget parameters/assumptions.
Under the first scenario, the Minister said; “the subsidy on PMS is estimated at N6.72 trillion for the full year 2023”. This amount she said “will remain and be fully provided for by the NNPC on behalf of the federation”.
The second scenario the minister explained is that “petrol subsidy will remain up to mid-2023 based on the 18-month extension announced early 2021, in which case only N3.36 trillion will be provided for”.
Dr. Ahmed however cautioned that “both scenarios have implications for net accretion to the Federation’s Account and projected deficit levels”.
Also, the minister explained that the transition of the NNPC to a limited liability company means that the company will no longer make contributions to the federation’s account but will make payments on only taxes and royalties as well as continue with the task of paying for fuel subsidies just as it has been the case in the past eight months.
She asserted that a decision will soon be announced as to how the payment on taxes and royalties will be made, either on a monthly or quarterly basis.
On revenue performance, the FInance Minister said that between January and April , the federal government generated the sum of 1. 6 trillion naira with 285 billion naira being contributions from oil revenues and 632 billion from the non oil sector.