President Muhammadu Buhari yesterday presented the 2022 budget estimate to a joint session of the national assembly.
Christened ‘Budget of economic growth and sustainability’, the proposed total expenditure for the coming year is put at N16.39 trillion with crude oil benchmark price of $57 per barrel and daily oil production estimate of 1.88 million barrels (inclusive of condensates of 300,000 to 400,000 barrels per day).
The exchange rate is projected at N410.15 per dollar and projected GDP growth rate of 4.2 per cent with 13 per cent inflation rate.
The president said the total federally distributable revenue is estimated at N12.72 trillion in 2022 while total revenue available to fund the 2022 budget is estimated at N10.13 trillion.
This includes grants and aid of N63.38 billion, as well as the revenues of 63 government-owned enterprises.
The president put the total federally-collectible revenue at N17.70 trillion while oil revenue is projected at 3.16 trillion, non-oil taxes estimates, N2.13 trillion and independent revenues, N1.82 trillion.
The budget contains a non-debt recurrent expenditure of N6.83 trillion, personnel cost of N4.11 trillion and debt service of N3.61 trillion.
Statutory transfers have been put at N768.28 billion, pension, gratuities and retirees’ benefits, N577 billion and overhead cost, N792.39 billion.
The deficit, Buhari said, will be financed mainly by new borrowings totalling N5.01 trillion.
“This represents 3.39 per cent of estimated GDP, slightly above the three per cent threshold set by the Fiscal Responsibility Act 2007. Countries around the world have to of necessity over-shoot their fiscal thresholds for the economies to survive and thrive.
“We need to exceed this threshold considering our collective desire to continue tackling the existential security challenges facing our country,” he said.
The president said Nigerians are right to worry about the government’s attitude of borrowing but the nation’s borrowing is still within limit.
“We plan to finance the deficit mainly by new borrowings totalling N5.01 trillion, N90.73 billion from privatization proceeds and N1.16 trillion draw downs on loans secured for specific development projects.
“Some have expressed concern over our resort to borrowing to finance our fiscal gaps. They are right to be concerned. However, we believe that the debt level of the Federal Government is still within sustainable limits. Borrowings are to specific strategic projects and can be verified publicly,” he added.
He said the budget was designed “to build on the achievements of previous budgets and to deliver on our goals and aspirations as will be reflected in our soon-to-be-launched National Development Plan of 2021 to 2025.”
He said allocations to MDAs were guided by the strategic objectives of the National Development Plan of 2021 to 2025, which are: diversifying the economy, with robust MSME growth; Investing in critical infrastructure; strengthening security and ensuring good governance; enabling a vibrant, educated and healthy populace; reducing poverty; and minimizing regional, economic and social disparities.
“Defence and internal security will continue to be our top priority. We remain firmly committed to the security of life, property and investment nationwide,” Buhari said.
“We will continue to ensure that our gallant men and women in the armed forces, police and paramilitary units are properly equipped, remunerated and well-motivated.
“The 2022 budget is also the first in our history, where MDAs were clearly advised on gender-responsive budgeting. These are part of critical steps in our efforts to distribute resources fairly and reach vulnerable groups of our society,” he said.
