Categories: News

FG cuts 2022 capital expenditure by N758bn

Despite the country’s huge infrastructure deficit, the Federal Government plans to spend N3.6trn on capital expenditure in 2022, which is N758bn less than the amount allocated for capital projects in the 2021 budget.

The minister of Finance Budget and National Planning Zainab Ahmed spoke on the details of the spending at a public consultation of the Medium Term Expenditure Framework/Fiscal Strategy Paper for 2022-2024 held in Abuja on Thursday.

According to the minister, in 2022, the FG plans to spend N13.98trn which represents an increase of the N13.58trn approved in the 2021 budget.

A breakdown of the expenditure as contained in the MTEF/FSP for 2022-2024 showed that the government slashed the proposal for capital expenditure from the N4.37trn approved in 2021 to N3.61trn in 2022.

However, the amount allocated for debt servicing in 2022 is expected to increase to N3.6trn, as against N3.12trn in 2021, and non-debt recurrent expenditure is projected at N6.2trn in 2022 as against N5.64trn in 2021.

On revenue projection, the FG plans to generate the sum of N8.35trn in 2022 as against the N7.98trn for 2021.

The revenue for 2022 is expected to be generated thus; oil revenue N3.15trn, NLNG Dividend N184.03bn, mining N2.91bn, non oil taxes N2.13trn while independent revenue from government agencies is expected to contribute the sum of N1.08trn.

Zainab noted that the 2022 budget would be prepared based on an oil production volume of 1.88 million barrels per day with a benchmark oil price of $57 per barrel at an exchange rate of N410.15 to a dollar.

Meanwhile, the Director-General of the Budget Office of the Federation, Ben Akabueze said that the budget for the 2022 fiscal year is expected to handover to the National Assembly by September this year.

He added that the timely presentation of the budget illustrates the FG’s commitment to having a budget that works for the people.

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