FG posts budget deficit of N1.62 billion in three months
The The federal government recorded a budget deficit of N1.62 billion in the first quarter of 2022.
The Central Bank of Nigeria disclosed this in its first quarter report of 2022.
According to the report, the federal government budget deficit fell from 1.84 billion naira in the fourth quarter of 2021 to 2.49 billion naira in the first quarter of 2021.
“At 1.62 tn, the interim FGN fiscal deficit was 11.8% lower than the previous quarter’s level, but exceeded the quarterly target of 1.59 tn by 1.3%,” the report said.
He added that the revenue in the federation account decreased by 2.5% and 45.0% respectively, compared to the previous quarter and the target, following a sharp drop in the sources of oil revenues.
Non-oil revenue accounted for 68.4% of total collection, while oil revenue accounted for 31.6%.
The observed decline in federation revenue was triggered by the decline in all components of oil revenue (crude oil and gas exports, oil profit taxes and royalties, domestic sales of crude oil and gas, among others) .
At 799.10 billion naira, oil revenue was 28.3% below profits last quarter and 66.4% below projected profits, according to the report.
By contrast, non-oil revenue, which stood at N1.73 billion, exceeded collections in the previous quarter, but was 22.1 percent below target.
The rise in profits, compared to the fourth quarter of 2021, was attributed, in large part, to a significant increase in value-added tax recoveries and independent revenue from the federal government.
The improvement in these revenue components underscored the intensification of the non-oil revenue drive by widening the tax net and plugging revenue leakages, especially in state-owned enterprises, he added.
The report said a net balance of N1.86 billion was kept in the federation account for distribution to the three levels of government after taking into account statutory deductions, transfers and additional inflows from winnings. foreign exchange and non-oil surplus revenues.
Of this amount, federal, state and local governments received N720.22 billion, N590.44 billion and N436.37 billion respectively, while the balance of N118.01 billion was allocated to the 13.0% diversion fund to be distributed among oil-producing states.
The total disbursement in the first quarter of 2022 was 10.7% and 48.2%, which is lower than the budget reference allocations in the fourth quarter of 2021 and the budget reference, respectively.