To conclude his tenure, President Muhammadu Buhari will formally present the 2023 budget estimates to the joint session of the National Assembly on Friday
According to the president, this 8th financial blueprint of his administration is tagged the budget of Fiscal Sustainability and transition.
Speaking to members of the legislature, Buhari emphasized that the 2023 transition budget was created to address important concerns and establish the groundwork for the new administration.
The president stated that he thinks the total federally recoupable revenue will be 16.87 trillion Naira in 2023 based on these financial factors and estimates.
The entire revenue available to cover the 2023 federal budget is projected to be 9.73 trillion Naira, while the total money that can be distributed by the federal government is predicted to be 11.09 trillion Naira.
The documents state that the oil benchmark is expected to be $70, that crude oil production will be 1.69 million barrels per day, that the exchange rate will be N435.57 to the dollar, that the inflation rate will be 17.16%, and that the growth rate will be 3.75 per cent, up from a revised estimate of 3.55% for the year 2022.
“Growth is expected to moderate to 3.30% in 2024 before picking up to 3.46% in 2025.
“The inflation rate is projected to average 17.16% in 2023, up from the revised average of 16.11% for 2022.
“Upward pressure on prices is expected to be driven by the current and lag effect of the global price surge due to the Russian-Ukraine war, domestic insecurity, rising costs of imports, exchange rate depreciation, as well as other supply-side constraints.”
Federal Government had proposed two options for the National Assembly to consider for the 2023 budget.
According to the Minister of Finance and National Planning, Dr Zainab Ahmed, in the first scenario, the deficit was projected to be N12.41 trillion in 2023, up from N7.35 trillion budgeted in 2022, representing 196 per cent of total revenue or 5.50 per cent of the estimated GDP.
Under the arrangement, Federal Government projected to spend the sum of N6.72 trillion on fuel subsidies.
In the second scenario, Federal Government projected a fiscal deficit of N11.30 trillion, which is 5.01 per cent of the estimated GDP.
Under this arrangement, the PMS subsidy for January to June 2023 was estimated at N3.3 trillion.
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