FG, States, LGs share N6tr
in 9 months
on december 23, 2013 at
1:59 am in business
FG overspends by
N740bn
BY Babajide Komolafe
The three tiers of
government shared N6
trillion from January to
September from the
federation account, while
the federal government
overspent its budget by
N740 billion within the
same period.
These were revealed in the
Economic report for the first
three quarters of the year
released by the Central
Bank of Nigeria (CBN).
The report revealed that
total federally collected
revenue for the three
quarters was N7.51 trillion
while total allocation to the
three tiers of government
including VAT revenue
stood at N6.051 trillion.
Further analysis revealed
that N2.811 trillion was
allocated to the federal
government; the 36 state
governments got N2.19
trillion, while the 774 local
governments got N1.2
trillion.
CBN governor, Sanusi
During the period, the
Federal Government spent
N3.55 trillion, implying
deficit of N740.95 billion.
Analysis of federal
government expenditure
reveals that N2.35 trillion
representing 66.28 per cent
was spent on recurrent
expenditure, while N933.12
billion representing 26.3
per cent was spent on
capital expenditure.
Recall budget estimate for
2013 comprise federally
collectible revenue of
N11.34 trillion, with
revenue for the Federal
Government estimated at
N4.1 trillion. Capital
expenditure was also
projected at N1.62 trillion.
The CBN economic report
for the three quarters gave a
summary of the
implementation of the
budget.
First Quarter
Total federally-collected
revenue during the first
quarter of 2013 stood at
N2,425.30 billion,
representing a decline of
2.4 and 17.9 per cent below
the receipts in the
preceding quarter and the
corresponding period of
2012, respectively.
However, relative to the
proportionate budget
estimate, federally-collected
revenue rose by 3.1 per
cent.
At N908.14 billion, the
Federal Government retained
revenue for the first quarter
of 2013 was lower than
both the proportionate
budget estimate and
receipts in the preceding
quarter by 11.0 and 1.6 per
cent, respectively. Relative
to the receipts in the
corresponding period of
2012, Federal Government
retained revenue also
declined by 10.6 per cent.
Of this amount, the Federal
Government share from the
Federation Account, VAT
Pool Account and FGN
Independent Revenue were
N643.87 billion, N26.34
billion and N35.42 billion,
respectively, while “Others”
accounted for the balance
of N202.51 billion.
Total estimated expenditure
for the first quarter stood at
N1,192.92 billion and was
lower than the
proportionate budget
estimate by 8.0 per cent,
but higher than the levels in
the preceding quarter and
corresponding period of
2012 by 5.5 and 8.3 per
cent,respectively. The
development (relative to the
quarterly budget estimate)
was attributed to the delay
in capital releases during
the review period.
A breakdown of the total
expenditure showed that the
recurrent component
accounted for 65.5 per
cent, capital component
27.0 per cent, while
statutory transfers
accounted for the balance
of 7.5 per cent. Further
breakdown of the recurrent
expenditure showed that the
non-debt component
accounted for 77.4 per
cent, while debt service
payments accounted for the
balance of 22.6 per cent.
Thus, the fiscal operations
of the Federal Government
resulted in an estimated
deficit of N284.78 billion or
2.9 per cent of the
estimated nominal GDP for
the quarter, compared with
the 2013 benchmark and
the preceding quarter
deficits of N276.11 billion
and N207.32 billion,
respectively. The deficit was
financed mainly from
domestic sources.
SECOND QUARTER
Total federally-collected
revenue during the second
quarter of 2013 stood at
N2,370.71 billion,
representing a decline of
2.3, 5.2 and 16.4 per cent
below the levels in the
preceding quarter, the
corresponding quarter of
2012 and the proportionate
budget estimate,
respectively.
At N938.29 billion, the
Federal Government retained
revenue for the second
quarter of 2013 was lower
than the proportionate
budget estimate by 23.5 per
cent, but higher than the
receipts in the first quarter
of 2013 and the
corresponding quarter of
2012 by 3.3 and 6.0 per
cent, respectively. Of this
amount, the Federal
Government share from the
Federation Account, VAT
Pool Account, FGN
Independent Revenue,
Revenue Augmentation and
Sure-P were N715.00
billion, N27.88 billion,
N18.17 billion, N128.36
billion and N48.88 billion,
respectively.
Jonathan and Okonjo-
Iweala
Total estimated expenditure
for second quarter 2013
stood at N1,280.41 billion,
indicating a decline of 11.6
per cent relative to the
quarterly budget estimate. It
was, however, higher than
the level in the preceding
quarter by 7.3 per cent. The
development relative to the
quarterly budget estimate
was attributed largely to the
non-release of capital
outlay during the period. A
breakdown of the total
expenditure showed that the
recurrent component
accounted for 64.3 per
cent, capital component
27.5 per cent, while
statutory transfers
accounted for the balance
of 8.2 per cent.
Further breakdown of the
recurrent expenditure
showed that the non- debt
component accounted for
75.5 per cent, while debt
service payments accounted
for the balance of 24.5 per
cent. Thus, the fiscal
operations of the Federal
Government resulted in an
estimated deficit of
N342.12 billion or 4.8 per
cent of GDP, compared with
a proportionate budget
deficit of N221.77 billion or
3.1 per cent of GDP for the
second quarter 2013.
THIRD QUARTER
Total federally-collected
revenue during the third
quarter of 2013 stood at
N2,716.43 billion,
representing a decline of
4.2 and 1.58 per cent below
the quarterly budget
estimate and the level in
the corresponding quarter
of 2012, respectively.
However, relative to the
level in the preceding
quarter, total federally-
colllected revenue rose by
14.4 per cent
At N964.86 billion, the
Federal Government retained
revenue for the third quarter
of 2013 was lower than the
proportionate budget
estimate by 21.3 per cent,
but exceeded the receipts in
the preceding quarter and
the corresponding quarter
of 2012 by 9.0 and 9.2 per
cent, respectively. Of this
amount, the Federal
Government share from the
Federation Account, VAT
Pool Account, FGN
Independent Revenue and
Sure-P were N769.83
billion, N27.99 billion,
N118.16 billion and N48.88
billion, respectively.
Total estimated expenditure
for the third quarter 2013
stood at N1,078.91 billion,
indicating a decline of 25.5
and 6.1 per cent below the
quarterly budget estimate
and the level in the
preceding quarter,
respectively. The
development relative to the
quarterly budget estimate
was attributed to the
decline in both recurrent
and capital components
during the period.
A breakdown of the total
expenditure showed that the
recurrent component
accounted for 69.5 per
cent, while capital and
statutory transfers
components accounted for
24.0 and 6.5 per cent,
respectively. Further
breakdown of the recurrent
expenditure showed that the
non-debt component
accounted for 79.0 per
cent, while debt service
payments accounted for the
balance of 21.0 per cent.
Thus, the fiscal operations
of the Federal Government
resulted in an estimated
deficit of N114.05 billion or
0.95 per cent of GDP,
compared with a
proportionate budget deficit
of N221.77 billion or 1.9
per cent of GDP for the third
quarter 2013.