The Federal Government has announced that it has generated N3.93 trillion in income so far this year, accounting for 73% of the N7.9 trillion revenue target for 2021. It was also revealed that beginning in the 2022 budget, important sectors such as education would receive 7.9% of the whole budget, or N1.290 trillion, while healthcare will receive 5% of the total budget, or N820.2 billion.
This was revealed by Mrs. Zainab Ahmed, Minister of Finance, Budget, and National Planning, at the Public Presentation and Breakdown of the Federal Government’s 2022 Appropriation Bill on Friday in Abuja.
This comes after President Buhari presented the National Assembly with a N16.39 trillion Appropriation Bill for 2022 on Thursday in Abuja.
The Minister said,
” Exchange rate of N410.15 per US dollar and projected Gross Domestic Product (GDP) growth rate of 4.2 percent and 13 percent inflation rate, were also taken into consideration.”
She added that of the generated revenue for 2021, the Federal Government’s share of oil revenues was N754.2 billion, representing 56.3 percent of the performance of the prorated sum, citing that non-oil taxes revenues stood at N1.15 trillion, representing 115.7 percent, which was above what was targeted in the 2021 budget.
On the expenditure, she said,
“N8.14 trillion had been spent out of the N9.71 trillion budget, adding that it was inclusive of expenditure estimates of Government-Owned Enterprises (GOEs), but excluded project-tied loans.”
She added that N2.87 trillion had been expended on debt servicing and N2.57 trillion for personnel cost, including pensions, while N1.79 trillion had been expended on capital projects.
On the 2022 Appropriation Bill, she said that the N16.39 trillion proposed to be spent was 12.2 percent higher than the initial 2022 Medium Term Expenditure Framework (MTEF), stating that from the amount, N10.132 trillion was projected to be generated as revenue and N6.26 trillion which was 3.39 percent of GDP as deficit would be financed majorly by borrowing.
“To fund the deficit, N2.51 trillion would come from domestic sources, another N2.51 trillion from foreign borrowing, N1.16 trillion from multi- and bi-lateral loan drawdowns, and N90.7 billion from privatization proceeds,” she said.
On revenue generation, Ahmed stated that N3.53 trillion would come from oil, N2.13 trillion from taxes, N1.816 trillion from independent revenue, N1.728 trillion from retained GOEs and N924.31 billion from other revenue sources.
“Recurrent expenditure, which is non-debt spending, was estimated to cost N6.83 trillion, while aggregate capital expenditure was pegged at N5.35 trillion and N3.61 trillion would go for debt servicing N292.7 billion would provide for the retirement of maturing bonds to local contractors and suppliers” the Minister said.
She revealed that the defense and security sector, at 15 percent, would get N2.41 trillion, infrastructure at 8.9 percent N1.45 trillion, and the education sector 7.9 percent of the budget at N1.290 trillion.
“For the health sector, 5 percent of the total budget at N820.2 billion and social development and poverty reduction programs at 5.3 percent of the budget would get N863 billion.
“We are optimistic of attaining more inclusive GDP growth as we focus on achieving our objective of massive job creation and lifting millions of our citizens out of poverty.
“Early passage of the 2022 budget for implementation from January 1 will significantly contribute towards achieving government macro-fiscal and sectoral objectives,” she added.