In News by Oluwaseun Samuel on the 19th, August, 2020

FG Spent 97% Of Jan-Might Income On Debt Servicing

FG Spent 97% Of Jan-May Revenue On Debt Servicing

Zainab Ahmed, minister of finance, funds and nationwide planning

The federal authorities spent 97.5 p.c of its January to Might 2020 income on debt servicing.

In accordance with the 2021 funds name round printed by the Funds Workplace, the federal authorities generated complete income of N1.62 trillion out of the N2.62 trillion projected for the interval.

Throughout this five-month interval, N1.58 trillion was spent on debt servicing; representing 97.5 p.c of the N1.62 trillion income generated.

In June, the Worldwide Financial Fund projected that debt servicing will gulp all of FG’s income in 2020.

In accordance with the doc, the federal authorities spent a complete of N3.98 trillion inside the five-month interval; N1.79 trillion was stated to have been launched for non-debt recurrent expenditure, together with salaries, pensions and overheads.

A complete of N378.85 billion was launched for capital expenditure through the interval.

A breakdown of the income generated confirmed that N701.6 billion was realised as oil income whereas non-oil tax revenues totalled N439.32 billion (65 p.c of revised goal).

A complete of N213.24 billion was generated from firms revenue tax, N68.09 billion from value-added tax and N158 billion was realised from customs assortment.

The 2020 funds needed to be revised after crude oil costs fell on the again of a worth warfare between Russia and Saudi Arabia and the COVID-19 pandemic disrupted world provide chains.

Between the January and Might interval, the federal authorities incurred a complete debt of N2.35 trillion.

The revised N10.eight trillion 2020 funds features a N4.98 trillion deficit which is to be primarily financed by borrowing.

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Supply: TheCable

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