Figures from the Central Bank of Nigeria (CBN) Monday, have suggested that out of the N6.06tn approved for the 2016 budget, about N2.95tn has so far been released by the Federal Government for capital and recurrent expenditures.
The bank said the N2.95tn spent in the first half of this year was eight per cent higher than the N2.73tn recorded in the corresponding period of 2015.
It would be recalled that the N6.06tn budget had a recurrent expenditure of N2.65tn; capital expenditure of N1.58tn with debt service of N1.47tn and fiscal deficit of N2.2tn.
A new report from the apex bank added on Monday that recurrent expenditure constituted the highest chunk of the N2.95tn spending at 73.5 per cent or N2.17tn.
According to the report, “The Federal Government’s expenditure rose by eight per cent to N2.95tn in the first half of 2016, compared with the N2.73tn recorded in the second half of 2015.
“The expenditure also grew by 30.7 per cent, relative to the level in the corresponding period of 2015. Recurrent expenditure constituted 73.5 per cent of the total expenditure during the first half of 2016.”
During the first half of the year, the government recorded a fiscal deficit of N1.74tn, representing four per cent of the Gross Domestic Product.
But the fiscal deficit, according to the report, was mainly financed from domestic borrowings.
“The fiscal operations of the Federal Government resulted in an overall deficit of N1.74tn or four per cent of the GDP.
“This was higher than the proportionate budget deficit of N1.1tn for the first half of 2016 and the N881.33bn recorded in the second half of 2015. The deficit was financed mostly from domestic sources.”
Several government officials had fingered disruptions in crude oil production and poor taxpaying culture as the bane of early economic recovery.