Federal Government has revealed it will spend N13.98 trillion to execute the 2022 budget.
Within the same year, it is expected that the government will generate N8.76 trillion revenue, leading to a deficit of N5. 22 trillion.
The largest spending purse has been reserved for the Federal Ministry of Works and Housing with N352,654,857,950.
The second largest spender will be the Federal Ministry of Finance, Budget and National Planning N158,071,615,055.
This will include “N150bn for Power Sector Recovery Programme Transfer to NBET”.
Defence has been penciled down for N128,944,688,963. Education will spend N100,758,453,523.
Health will have an expenditure pot of N108,294,404,513.
These are contained in the Budget 2022 Call Circular with reference number: BD/2000/EXP/S.800/I/3/46, issued by the Minister of Finance, Budget and National Planning, Zainab Ahmed, to all Federal Government Ministries, Departments and Agencies (MDAs).
According to the Minister: “in accordance with the 2022 – 2024 Medium-Term Expenditure Framework and Fiscal Strategy Paper, the aggregate FGN revenue available for budget (including GOEs) for fiscal year 2022 is projected at N8.762 trillion, while the aggregate expenditure level is projected to be N13.98 trillion (inclusive of GOEs, grants/donor funded projects).
“This aggregate expenditure is made up of Statutory Transfers of N613.36 billion, Debt Service of N3.61 trillion, Sinking Fund of N292.71 billion, and Recurrent (non-debt) expenditure of N6.21 trillion, A total of N4.79 trillion (inclusive of N750.04 billion for GOEs) is provided for personnel and pension costs, an increase of N534.40 billion over 2021. This is 57 percent of projected aggregate revenues for 2022.”
The overall amount available for capital expenditures in the 2022 budget is N3.61 trillion which is 26 percent of total expenditure and it is 17.3 percent less than the 2021 figure of N4.13 trillion.
The Finance Minister described 2022 spending as development expenditure and the N1.76 trillion budgeted for MDAs as capital expenditure is N259.32 billion less than what was budgeted for 2021.
In 2022, N1.76 trillion has been set aside for MDAs, N366.14 billion for capital supplementation, N345.78 billion for capital component of statutory transfers, N10 billion for capital component of the Special Intervention Programme, N425.02 billion will be the capital budget of Government Owned Enterprises (GOEs), N62.24 billion for donor/grant funded expenditures and N638.32 billion funded by project-tied loans.
Zainab Ahmed noted that “the provision for development expenditure has been constrained by low revenues, increasing personnel and pension, as well as debt service costs.”
On the personnel component of the budget, the Call Circular warned that “the Chief Executive/Accounting Officer will be held responsible for accuracy of the submissions in response to the Personnel Budget Call Circular (ref. BD/2000/EXP/S.651/) issued to all MDAs by the Hon. Minister of Finance, Budget and National Planning in May 2021.
In addition, the Circular stated that “it is expected that all MDAs have now complied with Presidential directive to enroll on the Integrated Personnel and Payroll Information System (IPPIS). MDAs not yet on IPPIS WILL not be provided for in the personnel budget for 2022″.
The sum of N3.609 trillion will be spent on debt servicing made up of N2.506 trillion for Domestic Debt, and N1.103 trillion for Foreign Debt. N292.7 billion is provisioned for Sinking Fund to retire maturing loans.
She said: the “thrust of the federal government’s capital expenditure programme in 2022 will be the completion of as many ongoing projects as possible, rather than starting new projects.
”Thus, MDAs are hereby advised that new projects will not be admitted into the capital budget for 2022, unless adequate provision has been made for completion/work programme of all ongoing projects.”
The Nation
