This marks an increase of N1,319,246,566,677 from the proposal sent to the House by President Muhammadu Buhari.
The passage of the budget followed the consideration and approval of the report of the House committee on appropriation at plenary by the committee on supply, which showed an increase of over N1 trillion proposed estimates of the executive
A breakdown of the budget indicates an allocation of a total of N967.48 billion for statutory transfers, N6.55 trillion for debt service, N8.32 trillion for recurrent (non-debt) expenditure while the sum of N5.97 trillion is for contribution to the development fund for capital expenditure for the year ending on the 31st day of December 2023.
President Muhammadu Buhari had during the presentation of the budget proposal before the joint session of the National Assembly on October 7, hinted at Federal Government’s plan to spend N20.51 trillion in 2023, including N2.42 trillion spending by Government-Owned Enterprises (GEOs).
He had proposed that the 2023 expenditure comprises: 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.
According to him, the total fiscal operations of the Federal Government result in a deficit of N10.78 trillion, representing 4.78 percent of estimated GDP, above the 3 percent threshold set by the Fiscal Responsibility Act 2007.
On the fiscal deficit financing, President Buhari had explained that the deficit was mainly by new borrowings totalling N8.80 trillion, N206.18 billion from Privatization Proceeds and N1.77 trillion drawdowns on bilateral/multilateral loans secured for specific development projects/programmes
Meanwhile, the lawmakers have adjourned for the new year break and are expected to resume plenary on January 17th.
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