FG records N342.12b second quarter DEFICIT Central Bank of Nigeria (CBN) at the weekend estimated that the Federal Government’s spending activities between April and June resulted in a N432.12 billion deficit. The amount, 4.8 per cent of the nation’s Gross Domestic Product (GDP), was almost double the N221.77 billion or 3.1 per cent of GDP envisaged for the period in this year’s budget. Available data, according to the CBN’s Economic Report for the 2013 second quarter published on its website Friday, revealed a total federally-collected revenue of N2.37 trillion within the period, representing a 2.3 per cent slide from the first quarter’s figures. The revenue also represented a 5.2 per cent drop, when compared with the corresponding period of 2012; and 16.4 per cent down from the budget estimate. Of the amount, oil revenue accounted for N1.813 trillion or 76.5 per cent, a 6.1 per cent decline from the proportionate budget estimate and 1.9 per cent from the level in the preceding quarter. “The development relative to the preceding quarter was attributed to the decline in all the components of oil revenue during the review quarter, except non-oil receipts (gross), which at N556.95 billion (23.5 per cent of the total), was below the level in the preceding quarter and the proportionate budget estimate by 3.3 and 38.3 per cent, respectively. “The decline in non-oil revenue relative to the preceding quarter reflected, largely, the decline in customs and excise duties, independent revenue of the Federal Government, education tax and customs. “As a percentage of projected second quarter 2013 nominal GDP, oil and non-oil revenue were 25.6 and 7.9 per cent, respectively,” the report added. After all statutory deductions and transfers, N1.52 trillion was transferred to the Federation Account for distribution among the three tiers of government and the 13 per cent Derivation Fund, of which the Federal Government got N715 billion, while the state and local governments shared N362.66 billion and N279.59 billion, respectively. The balance of N163.03 billion went to the 13 per cent Derivation Fund for distribution to the oil-producing states. Within the period also, N280.07 billion was drawn from the Excess Crude Account (ECA) to bridge the short-fall in revenue for the period and was shared, with Abuja receiving the largest chunk of N128.36 billion or 45.85 per cent; states, N65.11 billion or 23.24 per cent; and local governments, N50.19 billion, or 17.92 per cent, leaving oil producing states with N36.41 billion, or 13 per cent. The report also noted that another N106.65 billion was distributed as the Subsidy Re-Investment and Empowerment Programme (SURE-P) among the three tiers of government and the 13 per cent Derivation Fund, in addition to N22.85 billion from Nigerian National Petroleum Corporation (NNPC) Refund, shared by the states, local govermnets and 13 per cent Derivation Fund. The additional sums brought total distributed revenue among the three tiers of government in the second quarter of 2013, the CBN said, to N2.115 trillion, higher than the 2013 quarterly budget estimate by 2.1 per cent. Of this amount, Abuja got N938.29 billion, 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. Total estimated expenditure for the period, however, stood at N1.28 trillion, a decline of 11.6 per cent relative to the quarterly budget estimate, but higher than the level in the preceding quarter by 7.3 per cent. Compared to the budget estimate for the second quarter, the development was attributed largely to the non- release of capital outlay during the period, a breakdown of which 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.
Posted on: Mon, 09 Sep 2013 08:30:28 +0000
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