Highlights of 2022 Budget Breakdown

09 Oct Highlights of 2022 Budget Breakdown

At the public presentation and breakdown of the 2022 Appropriation Bill yesterday, the Minister of Finance, Budget and National Planning, Zainab Ahmed, known in some circles as a “Revenue Hunter,” said lack of adequate revenue for capital and recurrent expenditure should be the major worry of Nigeria; not the current debt, which she insists is sustainable.

# 2021 Budget Performance: Between January and August, revenue generated was N3.93 trillion, some 73 per cent of the prorated target.

* Corporate income tax, CIT, and VAT collections were N547.5 billion and N235.7 billion respectively, representing 121 per cent in the case of CIT and 148 per cent in the case of VAT  of the prorated target.

* The revenue performance aggregate is 73 per cent shows that “the non-oil revenue is performing very well above the target, while the oil and gas revenue are lagging.”

* FG borrowed a total of N3.65 trillion to finance its N4.3 trillion fiscal deficit, and the balance covered by privatisation proceeds and drawdown of bilateral and multilateral-tied loans.

* On the expenditure side, N8.14 trillion representing 84 per cent of the N9.71 trillion prorated expenditure from January to August had been spent. This includes expenditure estimates of Government Owned Enterprises (GOEs), but doesn’t include project tied loans N2.89 trillion was spent on debt servicing; N2.57 trillion on personnel cost, including pension and gratuities;  N1.75 trillion on capital projects.

# The 2022 Budget: Funding of the proposed N16.39 trillion 2022 aggregate budget proposal will be by N10.132 trillion revenue projection and N6.26 trillion fiscal deficit.

* The budget spend will be N6.829 trillion for non-debt recurrent expenditure; N4.892 trillion for capital expenditure; and N3.60 trillion was for debt servicing

* To promote fiscal transparency, accountability and comprehensiveness, allocations to TETFUND and the budgets of 63 GOEs are integrated in the FG’s 2022 Budget proposal.

# Sectoral Allocation: The highest allocation of N2.41 trillion is  for Defence, comprising the military, police, intelligence and paramilitary agencies.

* Infrastructure (including Works and Housing, Power, among others) comes next with N1.45 trillion; followed by Youth, Women and Social Development with N921 billion. Education got N873.93 billion with another N108 billion for the Universal Basic Education Commission (UBEC).

* Other critical expenditure include N400 billion for National Poverty Reduction and Growth Strategy; N50 billion Police Operations Fund; and N37 billion additional provision for debts accruing from the electricity bills of MDAs; N178 billion has been appropriated for the national and housing population census.