2022 Budget: FG Has Released N4.7trn To Finance Expenditure So Far – Zainab Ahmed
Updated July 21, 2022
The Federal Government has so far released the sum of 4. 7 trillion naira to finance expenditure in the 2022 budget.
This is according to the Minister of Finance, Budget and National planning, Mrs Zainab Ahmed.
The minister disclosed this on Thursday at a consultative forum on the 2023-2025 Medium Term Fiscal Framework in Abuja.
The 17 trillion naira 2022 budget was signed into law on December 31 last year by President Muhammadu Buhari.
The breakdown of the budget 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.
Speaking at event, the minister further explained that 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.
She said the balance of N773.63bn was spent by the federal government on capital projects.
On revenue performance, the 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.
The minister also explained that the transition of the NNPC to a limited liability company means that the company will no longer make contributions to the federations 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.
Ahmed also spoke about fuel subsidy payments, pointing out two possible scenarios — business-as-usual or reform.
“Scenario 1 is the Business-as-Usual. This is assuming that the subsidy on PMS, which is estimated at N6.72 trillion for the full year 2023, will remain and be fully provided for,” she said.
“Scenario 2 – the Reform scenario: This assumes 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.”
She, however, said both scenarios have implications for net accretion to the federation account and projected deficit levels.