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FG’s deficit spending jumps 144% to N609bn

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FG’s deficit spending jumps 144% to N609bn
CBN

By Babajide Komolafe

The deficit spending of the Federal Government rose sharply by 144 per cent, YoY, to N650 billion in the first two months of 2020 from N250 billion in the corresponding period of 2019.

Disclosing this in its monthly economic reports for January and February 2020 released yesterday, the Central Bank of Nigeria (CBN) also said Nigeria’s oil revenue rose by 17 percent, year-on-year, YoY, to N1.1 trillion within the period as against the N896.8 billion recorded in the corresponding period of 2019.

The oil revenue was however 34 per cent lower than the N2.5 trillion Budget 2020 estimate for the two months.

READ ALSO: Massive corruption has created huge governance deficit ― Buhari

The reports also showed that Non-oil revenue rose by 15 percent, YoY, to N744.2 billion in January and February 2020, from N645.1 billion in the corresponding period of 2019. The Non-oil revenue recorded was however 17 percent lower than the budget 2020 estimate of N894.4 billion.

FG’s deficit spending

The sharp increase in deficit was due to 54 percent, YoY, upsurge in FG’s expenditure to N1.22 trillion in January and February 2020 from N798.9 billion in the corresponding period of 2020.

The upsurge in spending erased a 13 percent, YoY, increase recorded in FG’s retained revenue which rose to N619.3 billion in January and February 2020, from N548.9 billion in the corresponding period of 2019.
In its monthly analysis of the fiscal activities of the FG, the CBN stated: “At N325.54 billion, the estimated Federal Government retained revenue for the month of January 2020 was below the monthly budget of N705.44 billion by 53.9 per cent.

“At N587.05 billion, the estimated total expenditure of the Federal government was below the monthly budget estimate of N865.31 billion by 32.2 per cent. It was also below the N757.07 billion recorded in the preceding month by 22.5 per cent.

“ At N293.80 billion, the estimated Federal Government retained revenue for the month of February 2020 was below the monthly budget estimate of N705.44 billion by 58.4 per cent. “At N641.08 billion, the estimated total expenditure of the Federal Government was below the monthly budget estimate of N865.31 billion by 25.9 per cent. It was, however, above the N587.05 billion recorded in the preceding month by 9.2 per cent.”

Vanguard News Nigeria

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