FG projects N19.76 Trillion For 2023 Budget With A Deficit of N11.3 Trillion
FG projects N19.76 Trillion For 2023 Budget With A Deficit of N11.3 Trillion
According to the Nigerian government, the proposed budget for 2023 is N19.76 trillion, including a N11.3 trillion deficit. This information was provided by Dr. Zainab Ahmed, Minister of Finance, Budget, and National Planning, on Monday during a hearing of the House of Representatives Committee on Finance regarding the medium-term expenditure framework for 2023–2025.
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The minister further stated that the Federal Government anticipates N8.46 trillion in revenue for 2023, according to the News Agency of Nigeria.
What the minister is saying
According to Ahmed, who provided a breakdown of the revenue, the government anticipates N8.46 trillion in revenue for 2023. She stated that N1.9 trillion will come from sources related to oil, while the remaining N1 trillion would come from sources unrelated to oil.
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She added that the budget would be premised on $70 per barrel of crude oil and an exchange rate of N435.57 to the dollar, citing that oil production for 2023 was pegged at 1.69 million barrel per day; a real GDP growth rate of 3.7% and inflation rate of 17.16% for the year.
The Minister also stated that petrol subsidy would remain up to mid-2023 sequel to the 18-month extension announced early in 2021 and that N3.36 trillion would be provided to pay the subsidy in 2023.
- “We planned that 60% of revenue would be spent on debt servicing, but in some months, the ratio went up to 90%.
- “We have been able to, consistently without fail, service our debt and we do not have any projections even in the near future that we will fail.
FG projects N19.76 Trillion For 2023 Budget With A Deficit of N11.3 Trillion
- “We actually follow the Medium Term Debt Management Strategy very strictly; the debts are not taken haphazardly and they are planned.
- “They are appropriated and then we borrow against appropriation,’’ she stressed.
She urged that tighter enforcement of the performance management framework for Government-owned Enterprises would significantly increase operating surplus/dividend remittances in 2023, citing that there were no projections that Nigeria would default on her debt services in the nearest future.
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“We do have pressure in terms of the ratio because when revenue is underperforming, it means we have problems being able to service all of government’s (debts). The liquidity situation is very challenging.
“That is why what we need to do, including the parliament, is to work towards increasing revenue performance,” she added.
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