Buhari Presents N20.51Tn 2023 Appropriation Bill To NASS
* Above N19.76tn MTEF, FSP Approved By NASS
*N10.78tn Fiscal Deficit Of 4.78% Above 3% Stipulated In FRA
PRESIDENT Muhammadu Buhari, yesterday in Abuja, presented his last (2023) Appropriation Act of N20.51trillion total expenditure estimates, made up of N10.78trillion fiscal deficit, representing 4.78 per cent of estimated GDP, above the three per cent, to the joint session of the National Assembly.
The estimates are N75billion above the N19.76trillion approved by the Senate and House of Representatives in the Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) that was passed on Wednesday and Thursday by both Chambers separately.
A breakdown of the budget parameters and fiscal assumptions showed $70 oil price benchmark; 1.69 million barrels (inclusive of Condensates of 300,000 to 400,000 barrels per day) daily oil production; N435.57/$ exchange rate; 3.75 per cent projected GDP growth rate and 17.16 per cent inflation rate.
The proposed expenditure comprises statutory transfers of N744.11 billion; non-debt recurrent costs of N8.27 trillion; personnel costs of N4.99 trillion; pensions, gratuities and retirees’ benefits of N854.8 billion; overheads of N1.11 trillion; capital expenditure of N5.35 trillion, including the capital component of statutory transfers; debt service of N6.31 trillion; and Sinking Fund of N247.73 billion to retire certain maturing bonds.
The President said based on the fiscal assumptions and parameters, total federally-collectible revenue is put at N16.87trillion; total federally distributable revenue, N11.09trillion next year, while total revenue available to fund the federal budget is estimated at N9.73trillion, including the revenues of 63 government-owned enterprises.
He stated that oil revenue is projected at N1.92trillion, non-oil taxes are estimated at N2.43trillion, FGN independent revenues are projected to be N2.21trillion; other revenues total N762billion, while the retained revenues of the GOEs amount to N2.42trillion.
The Appropriation Bill aims to maintain the focus of MDAs on the revenue side of the budget and greater attention to internal revenue generation, while sustenance of revenue diversification strategy would further increase the non-oil revenue share of total revenues.
Also, N20.51trillion is proposed for the Federal Government in the estimates, including N2.42trillion spending by government-owned enterprises.
Federal Government’s total fiscal operations are to result in a deficit of N10.78trillion, representing 4.78 per cent of estimated GDP, above the three per cent threshold set by the Fiscal Responsibility Act 2007.
Buhari stated: “As envisaged by the law, we need to exceed this threshold, considering the need to continue to tackle the existential security challenges facing the country. We plan to finance the deficit mainly by new borrowings totalling N8.80trillion, N206.18billion Naira from privatisation proceeds and N1.77trillion draw-downs on bilateral/multilateral loans secured for specific development projects/programmes.
