Connect with us

Economy

FG to borrow N4.89trn for 2022 budget – Finance Minister

Published

on

Minister of finance, budget and national planning, Zainab Ahmed has said the country’s 2022 budget will be funded by a budget deficit with N4.89 trillion external and domestic loans.


Addressing journalists at the end of the federal executive council (FEC) meeting on Wednesday, she disclosed that council had approved the 2022-2024 medium-term expenditure framework/ fiscal strategy paper (MTEF/FSP).

The projected budget deficit for 2022 is N5.62 trillion, indicating an increase from N5.60 trillion in 2021.

According to the minister, the deficit would be financed by fresh local and international loans as well as other sources.

“This amount represents 3.05% of the estimated GDP, which is slightly above the 3% threshold that is specified in the Fiscal Responsibility Act.

“The FRA empowers Mr President to exceed the threshold in his opinion, the nation faces national security threats. And it is our opinion on fact agreed that we can exceed.

“The deficit is going to be financed by new foreign borrowing and domestic borrowing, both domestic and foreign in the sum of N4.89 trillion on privatisation proceeds of N90.73 billion and drawdowns from existing project tied loans of N635 billion.”

Ahmed further pointed out that the projected debt to revenue ratio in the MTEF report is 43 per cent.

“We know Nigerians all have concerns about the actual debt to revenue ratio in 2019 was 58%. So, this is an improvement over the preceding 2019. In 2020, the ratio was up to 85%. So 2022 is a significant improvement,” Ahmed said.

She said FEC had also approved an aggregate of N13.98 trillion, which is 3 per cent higher than the 2021 budget and that projected revenues for 2022 to 2024, pecifically for 2022 had been presented to the federal government and “the revenue that we expect is N6.54 trillion aandN2.62 trillion to accrue to the federation account on VAT, respectively.”


Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

TRENDING

Politics2 months ago

Ex- Super Eagles Players Praise Asiwaju Tinubu’s Contributions to Nigeria, Sports

Former Nigeria’s international football players have commended All Progressives Congress National Leader, Asíwájú Bola Tinubu, for his contributions to democracy...

News2 months ago

Obiano’s wife was drunk – Bianca Ojukwu opens up on ‘valedictory slap’

Bianca, the wife of late Odumegwu Ojukwu, has explained why she slapped Ebele Obiano at the inauguration ceremony of Prof....

Politics2 months ago

Kaduna govt directs appointees seeking political office to resign

The Kaduna State Government has directed all political appointees and public servants aspiring for political offices in the 2023 general...

News2 months ago

Buhari approves new NBC board

President Muhammadu Buhari has approved the reconstitution of the Governing Board of the National Broadcasting Commission, NBC, following the expiration...

News2 months ago

Police arrest 2 soldiers, 3 others for robbing POS agent in Borno

The police in Borno have arrested five suspects, including two soldiers for alleged armed robbery and culpable homicide. Commissioner of...

News2 months ago

Terrorists kill DPO, 2 other policemen, 4 vigilantes in Niger

Suspected bandit terrorists have again hit Niger State, during which a Divisional Police Officer, DPO, two of his officers and four vigilante members were killed.  The...

Politics2 months ago

PDP will die in 2023 if it loses election – Atiku

Atiku Abubakar, a former Vice President, has said that the opposition Peoples Democratic Party (PDP) might not survive another eight...

News2 months ago

Presidency blames ‘Jonathan’ govt for recent national grid collapse

The Presidency has blamed the immediate past administration for the recent collapse of the nation’s power system. President Buhari’s Personal...

Uncategorized3 months ago

Mrs Dolapo in Maiduguri, marks Osinbajo’s birthday at North East Children’s Centre

Wife of the Vice President, Mrs Dolapo Osinbajo, was in Maiduguri on Monday to visit the North East Children’s Learning...

News6 months ago

Zulum to commission 22 schools, other projects in southern Borno

Governor Babagana Zulum of Borno has begun a five-day official visit to the southern part of the state to inaugurate...

Advertisement

Trending

Copyright © 2018 Daily correspondents