The Federal Government recorded a N13.50 trillion fiscal deficit in 2023, having made N5.99 trillion in revenue, a statement by BudgIT, a civic tech organisation has shown.
BudgIT said on its X handle on Monday that the government spent N19.50 trillion, more than three times what it earned in revenue last year.
Fiscal deficit occurs when the government’s total expenditure exceeds its total revenue within a fiscal year.
This shortfall typically leads the government to borrow money to cover the gap, which adds to its overall debt burden.
“According to the 2023 Fiscal Accounts Report of the Accountant General of the Federation, Nigeria’s Federal Government made a revenue of N5.99tn, spent N19.50tn, and recorded a deficit of N13.50tn—225% of the total revenue,” BudgIT said.
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The non-governmental group said N3.80 trillion of the revenue came from the Federation Account Allocation Committee (FAAC) while the federal government share of independent revenue raked in N1.98 trillion.
The FG share of the Federation Account contributed N2.39 trillion, exchange rate differences was N715.75 billion, while value added tax (VAT) accrued for N441.87 billion.
While the government’s revenues are swelling, a chunk of the earnings are gulped through debt servicing, leaving the government with a pittance to meet up with its fiscal responsibilities.
According to BudgIT, debt servicing accounted for 43.9 percent of the budget at N8.56 trillion — the largest single expense. This is even as the FG has continued to depend on borrowings to finance its budget.
The civic tech organisation also stated that non-debt spending took up 27.8 percent at N5.42 trillion, while capital expenditure was 23 percent at N4.49 trillion.
Of the money spent in 2023, capital expenditure which includes investments in infrastructure projects, construction of schools or hospitals get a paltry N4.49 trillion.
“It goes without saying that a significant portion of government spending was directed toward debt servicing, surpassing the revenue generated.
“As a result, the government continues to drift away from fiscal responsibility by borrowing more than it earns, resulting in a deficit of N13.50tn.,” BudgIT stated.
