FG records N1.3 trn revenue shortfall

The Federal government’s 2023 budget recorded a N1.255 trillion shortfall in its projected revenue generation between January and July, this year.

The 2024-2026 Medium Term Economic Framework (MTEF) prepared by the government indicated that of the N11.045 trillion projected for the year, the actual collection was N5.187 trillion, instead of the prorata N6.442 trillion, therefore leaving a shortfall of N1.255 trillion.

On the expenditure, the administration spent much less than it projected, as it spent only N8.6 trillion as at end of July, out of the N21. 83 trillion budgeted for the year.

According to the document, “The aggregate expenditure for FY 2023 is estimated at N21.83 trillion, with a prorata spending target of N12.29 trillion at end of July.

“The actual spending was N8.60 trillion. Of this amount, N3.94 trillion was for debt service, and N2.68 trillion for Personnel cost, including Pensions. Only about N857.08 billion (25% of the pro-rata budget) has been released for MDAs’ capital expenditure as of July 2023.

“This level of performance is partly explained by the introduction of the “Bottom-up Cash Plan” arrangement with effect from 2023″.

Despite, the current sluggish growth, the government projected a Gross Domestic Product growth rate of 3.76 percent next year and expects it to rise to 4.22 and 4.78 in 2025 and 2026, respectively.

From a.current N700/$1 exchange rate, the government has projected a N665.61/$1 and N669.79/$1 in 2025 and 2026. Respectively, in an optimism of a stronger Naira, in the coming years.
Inflation which.is currently at 26.72 had been projected at 17.16 this year.

The MTEF projected a 21.40 percent ; 20. 30 percent 18.60 percent 2024, 2025 and 2026, respectively.