President Muhammadu Buhari on friday presented the budget proposal for 2023 fiscal year to a joint session of the National Assembly (NASS).
Unveiling the N20.51trillion proposal, he described it as a budget of fiscal sustainability and transition.
He noted that the main aim of the 2023 appropriation bill is to maintain fiscal stability and ensure a smooth transition to the incoming administration.
The budget is the last he laid before the NASS and also the last for the consideration and approval of the 9th NASS as the second tenure of his administration will expire on May 29, 2023.
In the breakdown of the budget, he said that the proposed N20.51 trillion expenditure involves "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"
He said that the total fiscal operations of the federal government is expected to result in a deficit of 10.78 trillion Naira, which represents 4.78 per cent of estimated Gross Domestic Product above the 3 per cent threshold set by the Fiscal Responsibility Act 2007.
The president revealed that the government plans to finance the budget deficit mainly through new borrowings totalling 8.80 trillion Naira, 206.18 billion Naira from privatization proceeds and 1.77 trillion Naira drawdowns on bilateral and multilateral loans secured for specific development projects and programmes.
He said that the budget highlights the challenges and the key reforms necessary to tackle them.
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