From Uche Usim, Abuja
The Nigerian government is estimating an aggregate expenditure of N21.83 trillion in the 2023 budget, (inclusive of Government Owned Enterprises (GOEs and project-tied loans); just as capital spending has been pegged at N6.46 trillion.
The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed made the disclosure in Abuja on Wednesday at the 2023 budget breakdown.
According to her, the N21.83 trillion is 20 per cent higher than the amended 2022 budget.
She further disclosed that recurrent (non-debt) spending, is estimated to amount to N8.33 trillion, which includes a N200 billion social investment programme.
She added that the aggregate capital expenditure of N6.46 trillion is 30 per cent of total expenditure; and 3.5 per cent lower than the 2022 budget (inclusive of capital component of statutory transfers, GOEs Capital & project-tied loans expenditures).
“At N6.31 trillion, debt service is 29 per cent of total expenditure. This is 71 per cent higher than the 2022 estimate as it includes interest payment of N1.2 trillion for Ways & Means.
“The projected fiscal outcome in the 2023 budget is based on the PMS subsidy reform scenario. In the 2023 budget framework, it is assumed that: petrol subsidy will remain up to mid-2023 based on the 18-month extension announced early 2022. In this regard, only N3.36 trillion has been provided for the PMS subsidy.
“There will be tighter enforcement of the performance management framework for GOEs that will significantly increase operating surplus/dividend remittances in 2023”, the Minister explained.
On revenue estimates, Ahmed revealed that the total revenue available to fund the 2023 budget is estimated at N10.49 trillion.
“This includes the gross revenues of 63 Government-Owned Enterprises totalling N3.87 trillion. Of this, Federal Government oil revenue share is projected at N2.29 trillion, non-oil taxes are estimated at N2.43 trillion, and federal independent revenues are projected to be N2.62 trillion. Other revenues total N762 billion. In aggregate, 22 per cent of projected revenues is expected from oil-related sources, while 78 per cent is to be earned from non-oil sources”, she stated.
On fiscal deficit and deficit financing, the Minister noted that the overall budget deficit for 2023 stands at N11.34 trillion.
“This represents 5.03 per cent of GDP. The budget deficit is to be financed mainly by borrowings: N7.04 trillion from domestic sources, while offshore sources is N1.76 trillion.”