The Federal Government is to spend the sum of N13.98trn in the 2022 fiscal year, Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, has announced.
The minister stated this at the a public presentation of the Medium Term Expenditure Framework/Fiscal Strategy Paper for 2022-2024 on Thursday in Abuja.
The 2022 planned spending showed that the N13.98trn represents an increase over the N13.58trn approved in the 2021 budget.
The preparation of the budget estimates for Ministries, Departments and Agencies usually take into consideration the Medium Term Policies/Strategies contained in the Expenditure Framework and Fiscal Strategy Paper which is the Federal Government’s pre-budget statement.
The MTEF/FSP outlines the development priorities of the Federal Government for the period covered.
A breakdown of the expenditure showed that debt service is expected to gulp N3.6trn in 2022 as against N3.12trn in 2021, while non-debt recurrent expenditure is projected at N6.2trn in 2022 as against N5.64trn in 2021.
However, the government slashed the proposal for capital expenditure to N3.61trn in 2022, from the N4.37trn approved in 2021.
For the revenue side, the government is proposing to generate the sum of N8.35trn in 2022 as against the N7.98trn for 2021.
The revenue for 2022 is expected to be generated thus: oil revenue N3.15trn, NLNG Dividend N184.03bn, mining N2.91bn, non oil taxes N2.13trn while independent revenue from government agencies is expected to contribute the sum of N1.08trn.
The minister said the budget would be prepared based on an oil production volume of 1.88 million barrels per day with a benchmark oil price of $57 per barrel at an exchange rate of N410.15 to a dollar.
Minister of State for Budget and National Planning, Prince Clem Ikanade Agba in response to some questions on the occasion said that the Federal Government would through the Medium-Term National Development Plans and all necessary reforms like the removal of fuel subsidy generate a lot of funds to grow the nation’s Gross Domestic Product, GDP, faster than the nation’s population growth rate.
He also said that the government was developing a Web app, Christened the Eye Mark app, using a geo-spatial technology, to ensure exactitude in the monitoring and evaluation of capital projects countrywide by Nigerians.
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