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2023 Budget: FG misses budget targets as fiscal crisis deepens

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The Nigerian Federal Government has fallen short of its fiscal budget targets for the initial seven months of 2023, as per data obtained from the Medium Term Expenditure Framework for the period 2024-2026, as reported by ThePressNG.

The report highlights the level of fiscal crisis currently being faced by the government.

According to the budget performance data within the report, the federal government managed to accumulate revenue totaling N5.1 trillion during the first seven months of 2023. This figure falls short of its prorated target of N6.4 trillion, signifying a budget variance of 19.5%.

Additionally, the government’s overall expenditure during this period stood at N8.5 trillion, in contrast to a budgeted expenditure of N13.2 trillion for the same period, resulting in a budget variance of 34.9%.

Revenue: The major revenue source for the government, oil revenue, generated only N813.58 billion, significantly lower than its budgetary target of N1.3 trillion, representing a substantial variance of 37.4%.

Expenditure:  Concerning recurrent expenditure, the government incurred a total of N7.1 trillion, which includes non-debt recurrent expenditure of N3.2 trillion. Notably, non-debt recurrent expenditure experienced a 33% reduction from the budgeted N4.8 trillion.

This approach involves government agencies creating monthly cash requirements based on their actual needs, rather than receiving fixed allocations, with the aim of improving capital budget execution. It also entails the establishment of a revenue management team to identify and address revenue leakages, thereby increasing internally generated revenues (IGR).

The Nigerian Federal Government’s fiscal performance for the first seven months of 2023 raises significant concerns that could contribute to a fiscal crisis.

Additionally, a substantial portion of the budget continues to be allocated to servicing debt, limiting resources available for critical sectors.

 

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