FG overshoots Q1 budget estimate, records N725bn deficit

The current cash crunch facing the Federal Government became more pronounced on Monday,  as the Central Bank of Nigeria, CBN, released it Economic Report for the First Quarter of 2016, showing that the government recorded a deficit of N725.18 billion in its fiscal operations in the period under review.

According to the report, the country earned $1.02 billion from its non-oil exports during the period, representing an increase of 38.6 percent or $393.7 million (N78.7bn) over the amount earned in the same period of 2015.

The CBN, in the report, claimed that the deficit is due to an expenditure of N1.23 trillion, over retained earnings of N505.1 billion in the period under review.
It added that the deficit is attributable to a decline in oil and non-oil revenues and a rise in capital expenditure in the quarter under review.

Oil earnings, the report said was due to a sharp drop in oil and gas export, low price of crude oil in the international market and the persistent disruption in petroleum export due to vandalism and production shut-ins.

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The estimated fiscal deficit of N725.18 billion shows an increase of 178.6 percent above the 2015 provisional quarterly budget deficit of N260.25 billion.

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The report also indicated that the Federal Government overshot its budget estimate for the quarter by 3.4 percent but was below level in the fourth quarter of 2015 by 20.3 percent.

Breaking down the total expenditure, the report showed that recurrent expenditure took 72.8 percent of the total, while capital and statutory transfers accounted for 18 and 9.2 percent, respectively.

Non-debt component accounted for 72.7 percent of the recurrent expenditure while debt servicing payments accounted for the balance of 27.3 percent.

 

 

 

 

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