BudgIT Unveils N13.5Trn Deficit as Federal Government’s 2023 Spending Exceeds Revenue
In a new development, Civic-tech non-profit organisation, BudgIT has disclosed that Nigeria’s federal government significantly overspent its revenue in 2023. According to BudgIT’s latest analysis, the government’s expenditure soared to N19.50 trillion, which is more than three times its revenue of N5.99 trillion, resulting in a staggering deficit of N13.50 trillion—225% of the total revenue.
BudgIT’s findings, drawn from the 2023 fiscal accounts report of the Accountant General of the Federation, reveal that a major chunk of government revenue came from the Federation Account Allocation Committee (FAAC), contributing N3.80 trillion. Independent revenue sources, including the government’s share of the federation account and VAT, added N1.98 trillion and N441.87 billion respectively, with exchange rate differences contributing N715.75 billion.
The organization highlighted that debt servicing was the largest single expense, consuming 43.9% of the budget, amounting to N8.56 trillion. Non-debt spending took up 27.8% of the budget, totaling N5.42 trillion, while capital expenditure accounted for 23% at N4.49 trillion.
BudgIT emphasized that the portion of the government’s budget was directed towards servicing its debt, overshadowing the revenue generated. This fiscal imbalance has led to a considerable deficit, underscoring a troubling trend of borrowing exceeding earnings.
In a related update, the budget office of the federation reported on July 9 that N5.78 trillion was spent on debt servicing in the first nine months of 2023 alone. This expenditure highlights the growing concern over the federal government’s fiscal management and its impact on the nation’s economic stability.
