04 October 2016, Abuja – Out of the N6.06tn approved for the 2016 budget, about N2.95tn has so far been released by the Federal Government for capital and recurrent expenditures, figures from the Central Bank of Nigeria have indicated.
The apex bank stated that the N2.95tn spent in the first half of this year was eight per cent higher than the N2.73tn recorded in the corresponding period of 2015.
The figures were contained in the financial stability report of the CBN for the first half of this year, which was obtained by our correspondent on Monday in Abuja.
The N6.06tn budget had a recurrent expenditure of N2.65tn; capital expenditure of N1.58tn with debt service of N1.47tn and fiscal deficit of N2.2tn.
The report stated that recurrent expenditure constituted the highest chunk of the N2.95tn spending at 73.5 per cent or N2.17tn.
It said, “The Federal Government’s expenditure rose by eight per cent to N2.95tn in the first half of 2016, compared with the N2.73tn recorded in the second half of 2015.
“The expenditure also grew by 30.7 per cent, relative to the level in the corresponding period of 2015. Recurrent expenditure constituted 73.5 per cent of the total expenditure during the first half of 2016.”
The report said during the first half of the year, the government recorded a fiscal deficit of N1.74tn, representing four per cent of the Gross Domestic Product.
The fiscal deficit, according to the report, was mainly financed from domestic borrowings.
It added, “The fiscal operations of the Federal Government resulted in an overall deficit of N1.74tn or four per cent of the GDP.
“This was higher than the proportionate budget deficit of N1.1tn for the first half of 2016 and the N881.33bn recorded in the second half of 2015. The deficit was financed mostly from domestic sources.”
Since the beginning of this year, the gross revenue into the federation account has been experiencing a huge decline due to disruptions in crude oil production.
For instance, there had been explosions at Escravos terminal and a force majeure was declared at Brass terminal as a result of attacks on oil installations.
The Minister of Budget and National Planning, Senator Udo Udoma, had lamented the drop in revenue, stating that if there had not been disruptions in crude oil production, the economy would have recovered faster than it was currently doing.