The Minister of Finance Budget and National Planning, Mrs. Zainab Ahmed has revealed that President Muhammadu Buhari-led government borrowed heavily to fund the 2022 budget.
She added that the Federal Government spent about N12.87 trillion which was against the N17.126 trillion budgeted for 2022 as at November 30, 2022.
She made the disclosure at the Public Presentation and Breakdown of the Approved Federal Government 2023 Budget held on Wednesday in Abuja.
She said “Part of the N12.87 trillion, N5.24 trillion was for debt service and N3.94 trillion was for personnel costs noting that the actual spending as of November 30 was N12.87 trillion.”
Ahmed said “Of this amount, N5.24 trillion was for debt service; N3.94 trillion for Personnel Costs, including pensions; Statutory Transfers, Overhead and Service Wide Votes expenditures totalled N1.81 trillion; and N1.88 billion was released for capital expenditure.”
According to her the fiscal deficit for 2022 was estimated at N8.17 trillion, inclusive of the supplementary Budget noting that as at Nov. 30, 2022, the deficit was N6.37 trillion.
“The deficit was totally financed by borrowings, mostly from domestic sources.”
It would be recalled that President Buhari signed the 2023 Appropriation Bill of N21.83 trillion into law on Tuesday.
Though, the National Assembly (NASS) passed the 2023 Budget on Dec. 28, 2022 after it was laid before a joint session of the NASS on Oct. 7, 2022.
The Quest Times gathered that the main aim of the 2023 Appropriation Act was to maintain fiscal viability and ensure smooth transition to an incoming administration.