FG records N2.26trn fiscal deficit in four months, says CBN

With a decline in retained revenue and increase in expenditure, the Federal Government recorded a whopping sum of N2.26trillion as fiscal deficit in the first four months of 2022, findings by Westernpost have revealed.

This is 17 per cent below the N2.72trillion fiscal deficit reported in the first four months of 2021.

The breakdown revealed that fiscal deficit in January was N545.63billion and it moved by 6.5 per cent to N580.93billion in February 2022. The figures, thus, dropped to N491.28billion in March and recorded a sharp increase of 31 per cent to N643.09billion in April 2022.

According to the latest economic report for the month of April 2022, released by the Central Bank of Nigeria (CBN) during the weekend, the 14.3 per cent increase in FGN retained revenue was offset by the 23.8 per cent rise in public spending, leading to an expansion of the fiscal deficit.

“At N643.09 billion, the provisional fiscal deficit of the FGN was 30.9 per cent above the level in the preceding month,” the report explained.

Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed in July had disclosed that the  Federal Government recorded a N3.09 trillion deficit in its 2022 budget implementation between January and April, just as it will budget N6.72 trillion for fuel subsidy in 2023.

According to the report, fiscal conditions remained challenging in April 2022 despite higher revenue outcomes. Provisional federally collected revenue rose by 66.3 per cent relative to the level in March but fell short of the budget by 14.7 per  cent.

“FGN retained revenue increased by 14.3 per cent but was offset by a 23.8 per cent rise in total expenditure, resulting in a 30.9 per cent expansion in the overall deficit.

“The debt profile of the FGN remained elevated, as government incurred new borrowings to part-finance the deficit in the 2022 Budget. However, the debt stock was within the FGN’s medium-term debt strategy,” the report added.