In the budget for 2023, the Federal Government proposes to spend N854.8 billion on pensions, gratuities, and retiree benefits.
This information was provided by President Muhammadu Buhari at the Friday joint session of the National Assembly in Abuja while he was introducing the 2023 appropriation bill.
He revealed that from January to July 2002, there were 3.24 trillion in non-debt recurring expenses, of which 2.87 trillion went for wages, pensions, and overhead. He stated that N20.15 trillion will be spent by the government in the fiscal year 2023.
The early presentation of the 2023 budget plan is noteworthy as it assures the sustainability of the return to the January budget cycle, according to Prof. Uche Uwaleke, a professor of capital markets and the chairman of the Chartered Institute of Bankers of Nigeria, Abuja Branch,
“It’s equally noteworthy that the Finance Bill will be considered alongside the 2023 Appropriation Bill as well as the fact that the budget of government-owned enterprises is integrated to promote transparency.
“I think the oil price benchmark of $70 is conservative in line with budget principles. I also think the oil production benchmark of 1.69mbpd is realistic given the assurance by the President that the NNPC Limited is doing something to curb oil theft and pipeline vandalism.
“It is, however, worrisome that capital expenditure as a proportion of total spending has gone down well below the government target of 30 per cent while debt service at over N6tn is more than the amount budgeted for capital expenditure.”
The Chief Executive Officer, Centre for the Promotion of Private Enterprise, Muda Yusuf, said, “The 2023 Federal Government budget has further amplified the troubling fiscal outlook for the economy. Expenditure continues to accelerate amid consistent weak revenue performance.
“We have a budget of N20.51tn naira and revenue projection of N9.73tn naira. This is a deficit of 10.78tn. In all probability, the deficit will be much bigger by year-end because of the track record of revenue underperformance over the last couple of years.
“We are also likely to see an acceleration of CBN financing of the fiscal deficit given the revenue performance trajectory. The public debt stock is growing and is currently at N42tn.
