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Buhari presents the NASS with a budget for 2023 totaling N20.5 trillion

President Muhammadu Buhari has presented the NASS with a budget for the fiscal year 2023 totaling N20.5 trillion.
On Friday, Buhari presented the budget to a National Assembly joint session.

The President addressed lawmakers and said that the budget for 2023 “reflects the serious challenges currently facing our country, key reforms necessary to address them, and imperatives to achieve higher, more inclusive, diversified, and sustainable growth.” He described the budget as one of “fiscal sustainability and transition.”
He stated, “The Federal Government is expected to spend N20.51 trillion in total in 2023.This includes spending by Government-Owned Enterprises totaling N2.42 trillion.
“The proposed expenditure of N20.51 trillion in 2023 includes N744.11 billion in statutory transfers;N8.27 trillion in recurring costs unrelated to debt;Costs of N4.99 trillion for personnel;N854.8 billion in retirement benefits, gratuities, and pensions;costs totaling N1.11 trillion;N5.35 trillion in capital expenditure, including the capital component of statutory transfers;Service of N6.31 trillion in debt;and a Sinking Fund of N247.73 billion to retire some bonds that are about to expire.
“We anticipate that the Federal Government’s entire fiscal operations will result in a deficit of N10.78 trillion.”This exceeds the Fiscal Responsibility Act of 2007’s 3% threshold and is estimated to be 4.78 percent of GDP.
“Considering the necessity of continuing to address the existential security challenges facing the country, we must exceed this threshold as envisaged by the law.
“We plan to finance the deficit primarily through new borrowings totaling N8.80 trillion, N206.18 billion from privatization proceeds, and N1.77 trillion drawdowns from bilateral and multilateral loans secured for particular development projects and programs.
We have had to borrow money over time to cover our deficits.We have been utilizing loans to finance important development projects and programs that aim to enhance the delivery of public services to our people and improve our economic environment.
“As you are aware, this administration has witnessed two economic recessions.Our capacity to generate revenue has significantly decreased as a direct consequence of this.
“We had to spend our way out of recession in both instances, which resulted in higher public debt and debt service.Without the ongoing government spending that is financed by debt, “it is unlikely that our recovery from each of the two recessions would have been as rapid,” President Buhari stated.
However, Buhari urged the National Assembly’s leadership to ensure that the presented budget, “which includes those of the GOEs,” be returned to the Presidency after it was approved.
He continued, “The current practice of some committees of the National Assembly purporting to pass budgets for GOEs, which are at variance with the budgets sanctioned by me, and communicate such directly to the MDAs is against the rules and needs to stop.” “The current practice is against the rules and needs to stop,” he said.

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