The federal government has proposed a total expenditure of N20.51 trillion for the 2023 financial year which includes N2.42 trillion spending by Government-Owned Enterprises.
This is above the earlier proposal of N19.76 trillion approved in 2023-2025 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) submitted to the National Assembly.
President Muhammadu Buhari announced this at the presentation of the 2023 Appropriation Bill, christened: ‘Budget of Fiscal Sustainability and Transition’ presented to join the session of National Assembly on Friday.
The 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 budget is hinged on parameters or fiscal assumptions of Oil price benchmark of 70 US Dollars per barrel; daily oil production estimate of 1.69 million barrels (inclusive of Condensates of 300,000 to 400,000 barrels per day); exchange rate of 435.57 Naira per US Dollar; and projected GDP growth rate of 3.75 percent and 17.16 percent inflation rate.
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Based on the fiscal assumptions and parameters, total federally-collectible revenue is estimated at N16.87 trillion in 2023.
“Total federally distributable revenue is estimated at 11.09 trillion Naira in 2023, while total revenue available to fund the 2023 Federal Budget is estimated at 9.73 trillion Naira. This includes the revenues of 63 Government-Owned Enterprises.
“Oil revenue is projected at 1.92 trillion Naira, Non-oil taxes are estimated at 2.43 trillion Naira, FGN Independent revenues are projected to be 2.21 trillion Naira. Other revenues total 762 billion Naira, while the retained revenues of the GOEs amount to N2.42 trillion Naira.
“The 2023 Appropriation Bill aims to maintain the focus of MDAs on the revenue side of the budget and greater attention to internal revenue generation. Sustenance of revenue diversification strategy would further increase the non-oil revenue share of total revenues,” Buhari said.
… Details later
