To a joint session of the National Assembly, President Muhammadu Buhari has proposed a N20.51 trillion budget for the 2023 fiscal year.
The amount of N17.76 trillion approved by the National Assembly in the Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) previously cleared by both Chambers has increased by nearly N2 trillion as a result.
Buhari claimed that the sum reflected spending by government-owned businesses totaling N2.42 trillion (GOEs).
The proposed 2023 budget of N20.51 trillion, according to the President, would be spent on Statutory Transfers worth N744.11 billion, Non-debt Recurrent Costs worth N8.27 trillion, Personnel Costs worth N4.99 trillion, Pensions, Gratuities, and Retirees’ Benefits worth N854.8 billion, and Overheads worth N1.11 trillion.
The budgeted spending for 2023 also includes N5.35 trillion in capital expenditure, which includes the capital component of statutory transfers, N6.31 trillion for debt service, and N247.73 billion for sinking funds to repay some maturing bonds.
Other criteria and fiscal presumptions, according to Buhari, that underpin the 2023 budget are: a benchmark oil price of $70 per barrel; a daily oil production estimate of 1.69 million barrels (including condensates of 300,000 to 400,000 barrels per day); an exchange rate of N435.57 per US dollar; and projected GDP growth rates of 3.75 percent and 17.16 percent.
“Based on these fiscal parameters and assumptions, the total federally-collectible revenue is projected to reach 16.87 trillion Naira in 2023,” said Buhari.
“The expected total federally distributable revenue for 2023 is 11.09 trillion Naira, whereas the estimated total revenue available to finance the federal budget for 2023 is 9.73 trillion Naira. Included in this are the earnings of 63 government-owned businesses.
1.92 trillion Naira in oil money is anticipated, 2.43 trillion Naira in non-oil taxes, and 2.21 trillion Naira in FGN Independent revenues.
“Other receipts amount to N762 billion, while the GOEs’ retained income comprise N2.42 trillion.”
The 2023 Appropriations Bill intends to keep MDAs’ emphasis on the budget’s revenue side and give internal revenue production more priority.
“The non-oil income portion of overall revenues would further expand with the maintenance of the revenue diversification plan.”