Buhari to borrow over N6tr to finance 2022 budget deficit

President Muhammadu Buhari has proposed N16.39 trillion as the 2022 budget during a joint session of the National Assembly on Thursday.

The oil benchmark for the 2022 appropriation is $57 per barrel, while the exchange rate is N410.5 per dollar .

Titled “Budget of Economic Growth and Sustainability”, the appropriation is projected to stimulate GDP growth by 4.2 per cent, while inflation rate is put at 13 per cent.

Oil production will be at 1.88m barrels per day including condensates.

The budget deficit is estimated at N6.23 trillion.

“Defence and internal security will continue to be our top priority. We remain firmly committed to the security of life, property and investment nationwide,” said Buhari.

“We will continue to ensure that our gallant men and women in the armed forces, police and paramilitary units are properly equipped, remunerated and well-motivated.

“The 2022 budget is also the first in our history, where MDAs were clearly advised on gender responsive budgeting. These are part of critical steps in our efforts to distribute resources fairly and reach vulnerable groups of our society.

“Distinguished Members of the National Assembly, the 2022 to 2024 Medium Term Expenditure Framework and Fiscal Strategy Paper sets out the parameters for the 2022 Budget as follows:

“Conservative oil price benchmark of 57 US Dollars per barrel;

“Daily oil production estimate of 1.88 million barrels (inclusive of Condensates of 300,000 to 400,000 barrels per day); Exchange rate of four 410.15 per US Dollar; and projected GDP growth rate of 4.2 percent and 13 percent inflation rate.

“Based on these fiscal assumptions and parameters, total federally-collectible revenue is estimated at 17.70 trillion Naira in 2022.

“Total federally distributable revenue is estimated at 12.72 trillion Naira in 2022 while total revenue available to fund the 2022 Federal Budget is estimated at 10.13 trillion Naira. This includes Grants and Aid of 63.38 billion Naira, as well as the revenues of 63 Government-Owned Enterprises.

“Oil revenue is projected at 3.16 trillion, Non-oil taxes are estimated at 2.13 trillion Naira and FGN Independent revenues are projected to be 1.82 trillion Naira.

” A total expenditure of sixteen point three-nine (16.39) trillion Naira is proposed for the Federal Government in 2022.or the economies to survive and thrive.”