2024 Budget: FG to Spend N6.5trn on Personnel Costs
Federal Government will spend a total of N6.48 trillion (inclusive of N1.02 trillion for government enterprises (GOEs) on personnel and pension costs in the 2024 budget.
This is an increase of N576.16 billion or 9.8 per cent over the 2023 provision.
According to the budget document, this is 35.4 per cent of the projected aggregate revenues for 2024.
However, the aggregate amount available for capital expenditures in the 2024 budget is N8.70 trillion, higher than the 2023 provision of N8.43 trillion.
Meanwhile, the budget deficit is projected to be N9.18 trillion in 2024, i.e., N4.6 trillion down from N11.60 trillion budgeted in 2023. The proposed deficit represents about 50 per cent of total federal government revenues and 3.88 per cent of the estimated Gross Domestic Products (GDP).
The document attributed the proposed deficit in the budget to the proposed salary review.“The high projected level of fiscal deficit in 2024 is partly attributable to the proposed salary review of federal workers across board, increased pension obligations and higher debt service cost.
“At 3.88 per cent, the projected level of deficit is higher than the 3 per cent threshold stipulated in the Fiscal Responsibility Act (FRA), 2007, but significantly lower than the 2023 level of 6.11 per cent; FRA 2007 however allows government to exceed the 3 per cent threshold if justified by threats to national security
The draft 2024 budget was prepared against the backdrop of continuing global and domestic challenges.
Overall, the document, said, fiscal risks have increased, following weaker-than-expected domestic economic performance and structural issues in the domestic economy.
Meanwhile, revenue generation remains the major fiscal constraint to Nigeria’s fiscal viability.
“However, government is reviewing current tax and fiscal policies with a view to improving revenue generation.
“The target is to increase the ratio of revenue to GDP from less than 10 per cent currently to 18 per cent within the current term of this administration.Efforts will however focus on improving tax administration and collection” the document, noted.
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