The President, Major General Muhammadu Buhari (retd.), presented N16.39 trillion as the 2022 budget proposal before a joint session of the National Assembly on Thursday.
The proposed budget was titled, “Budget of Economic Growth and Sustainability”.
According to the president, the 2022 budget is also the first in Nigeria’s history, where MDAs were clearly advised on gender responsive budgeting.
Also, Buhari said Defence and internal security were given top priority.
PARAMETERS AND FISCAL ASSUMPTIONS
The 2022 to 2024 Medium Term Expenditure Framework and Fiscal Strategy Paper sets out the parameters for the 2022 Budget as follows:
a. Conservative oil price benchmark of 57 US Dollars per barrel;
b. Daily oil production estimate of 1.88 million barrels (inclusive of Condensates of 300,000 to 400,000 barrels per day);
c. Exchange rate of four 410.15 per US Dollar; and
d. Projected GDP growth rate of 4.2 percent and 13 percent inflation rate.
2022 REVENUE ESTIMATES
Based on these fiscal assumptions and parameters, total federally collectible revenue is estimated at 17.70 trillion Naira in 2022.
Total federally distributable revenue is estimated at 12.72 trillion Naira in 2022.
Total revenue available to fund the 2022 Federal Budget is estimated at 10.13 trillion Naira. This includes Grants and Aid of 63.38 billion Naira, as well as the revenues of 63 Government-Owned Enterprises.
PLANNED 2022 EXPENDITURE
A total expenditure of sixteen point three-nine (16.39) trillion Naira is proposed for the Federal Government in 2022. The proposed expenditure comprises:
a. Statutory Transfers of 768.28 billion Naira;
b. Non-debt Recurrent Costs of 6.83 trillion;
c. Personnel Costs of 4.11 trillion Naira;
d. Pensions, Gratuities and Retirees’ Benefits 577.0 billion Naira;
e. Overheads of 792.39 billion Naira;
f. Capital Expenditure of 5.35 trillion Naira, including the capital component of Statutory Transfers;
g. Debt Service of 3.61 trillion Naira; and
h. Sinking Fund of 292.71 billion Naira to retire certain maturing bonds.
The total fiscal operations of the Federal Government is expected to result in a deficit of 6.26 trillion Naira. This represents 3.39 percent of estimated GDP, slightly above the 3 percent threshold set by the Fiscal Responsibility Act 2007.