The 2016 Federal Government budget will run up till May 2017. Lets review the performance of the 2016 budget with figures given by Director-General of the Budget Office, Mr. Ben Akabueze. and the Accountant General of the Federation (AGF), Mr. Ahmed Idris
(1) 2016 Budget Performance:
IGR Target: N1.5t
IGR Achieved: N398b
Deficit: N1.1t
Capex Budget; N1.587
Capital Projects Actual: 870b
(2) FGN 2016 Budget performance so far
Debt Service: N1.3t 100% met
Personnel Cost: N1.4t 100% met
Domestic Borrowing: N1.18t 100% met
Overhead Cost: N132.8b, implying 85%
(3) Where does the FGN money go?
FGN FAAC receipts N4.05t
Debt Service : N1.30t (32%)
Salaries: N1.48t (36%)
Capital Projects: N870b (21%)
Analysis:
In essence, of every Naira earned, 68k goes to pay debt and salaries, leaving only 21k for for Capital Projects.
The Federal Government of Nigeria had touted a record deficit budget to spend its way out of a recession. It has justified borrowing billions to stimulate the economy but with only 21% actually spent on Capital projects, the questions is, why is borrowing so much to pay salaries and debt?
In a recession, spending should go to stimulative capital projects
