FG, States, LGs share N6tr in 9 months

• 
• 
  
• FG overspends by N740bn
• 
  

BY Babajide Komolafe
The three tiers of government shared N6 trillion from January to September from the federation account, while the federal government overspent its budget by N740 billion within the same period.
These were revealed in the Economic report for the first three  quarters of the year released by the Central Bank of Nigeria (CBN).

The report revealed that total federally collected revenue for the three quarters was N7.51 trillion while total allocation to the three tiers of government including VAT revenue stood at N6.051 trillion.
Further analysis revealed that N2.811 trillion was allocated to the federal government; the 36 state governments got N2.19 trillion, while the 774 local governments got N1.2 trillion.

CBN governor, Sanusi

During the period, the Federal Government spent N3.55 trillion, implying deficit of N740.95 billion. Analysis of federal government expenditure reveals that N2.35 trillion representing 66.28 per cent was spent on recurrent expenditure, while N933.12 billion representing 26.3 per cent was spent on capital expenditure.

Recall budget estimate for 2013 comprise federally collectible revenue of N11.34 trillion, with revenue for the Federal Government  estimated at   N4.1 trillion. Capital expenditure was also projected at N1.62 trillion.   The CBN economic report for the three quarters gave a summary of  the implementation of the budget.

First Quarter
Total federally-collected revenue during the first quarter of 2013 stood at N2,425.30 billion, representing a decline of 2.4   and 17.9 per cent below the receipts in the preceding quarter and the corresponding period of 2012, respectively. However, relative to the proportionate budget estimate, federally-collected revenue rose by 3.1   per cent.

At N908.14 billion, the Federal Government retained revenue for the first quarter of 2013 was lower than both the proportionate budget estimate and receipts in the preceding   quarter by 11.0 and 1.6 per cent, respectively. Relative to the receipts in the corresponding period of 2012, Federal Government retained revenue also declined by 10.6 per cent. Of this amount, the Federal Government share from the Federation Account, VAT Pool Account and FGN Independent Revenue were N643.87 billion, N26.34 billion and N35.42 billion, respectively, while “Others” accounted for the balance of   N202.51 billion.

Total estimated expenditure for the first quarter stood at N1,192.92 billion and was lower than the proportionate budget estimate by 8.0 per cent, but higher than the levels in the preceding quarter and corresponding period of 2012 by 5.5 and 8.3 per cent,respectively. The development (relative to the quarterly budget estimate) was attributed to the delay in capital releases during the review period.

A breakdown of the total expenditure showed that the recurrent component accounted for 65.5 per cent, capital component 27.0 per cent, while statutory transfers accounted for the balance of 7.5 per cent. Further breakdown of the recurrent expenditure showed that the non-debt component accounted for 77.4 per cent, while debt service payments accounted for the balance of 22.6 per cent.

Thus, the fiscal operations of the Federal Government resulted in an estimated deficit of N284.78 billion or 2.9 per cent of the estimated nominal GDP for the quarter, compared with the 2013 benchmark and the preceding quarter deficits of N276.11 billion and N207.32 billion, respectively. The deficit was financed mainly from domestic sources.

SECOND QUARTER
Total federally-collected revenue during the second quarter of 2013 stood at N2,370.71 billion, representing a decline of 2.3, 5.2 and 16.4 per cent below the levels in the preceding quarter, the corresponding quarter of 2012 and the proportionate budget estimate, respectively.

At N938.29 billion, the Federal Government retained revenue for the second quarter of 2013 was 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. Of this amount, the Federal Government share from the Federation Account, VAT Pool Account, FGN Independent Revenue, Revenue Augmentation and Sure-P were N715.00 billion, N27.88 billion,   N18.17 billion, N128.36 billion and N48.88 billion, respectively.

Jonathan and Okonjo-Iweala

Total estimated expenditure for second quarter 2013 stood at N1,280.41 billion, indicating a decline of 11.6 per cent relative to the quarterly budget estimate. It was, however, higher than the level in the preceding quarter by 7.3 per cent. The development relative to the quarterly budget estimate was attributed largely to the non-release of capital outlay during the period. A breakdown of the total expenditure 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.     Thus, the fiscal operations of the Federal Government resulted in an estimated deficit of N342.12 billion or 4.8 per cent of GDP, compared with a proportionate budget deficit of N221.77 billion or 3.1 per cent of GDP for the second quarter 2013.

THIRD QUARTER
Total federally-collected revenue during the third quarter of 2013 stood at N2,716.43 billion, representing a decline of 4.2 and 1.58 per cent below the quarterly budget estimate and the level in the corresponding quarter of 2012, respectively. However, relative to the level in the preceding quarter, total federally-colllected revenue rose by 14.4 per cent

At N964.86 billion, the Federal Government retained revenue for the third quarter of 2013 was lower than the proportionate budget estimate by 21.3 per cent, but exceeded the receipts in the preceding quarter and the corresponding quarter of 2012 by 9.0 and 9.2 per cent, respectively. Of this amount, the Federal Government share from the Federation Account, VAT Pool Account, FGN Independent Revenue and Sure-P were N769.83 billion, N27.99 billion,   N118.16 billion and N48.88 billion, respectively.

Total estimated expenditure for the third quarter 2013 stood at N1,078.91 billion, indicating a decline of 25.5 and 6.1 per cent below the quarterly budget estimate and the level in the preceding quarter, respectively. The development relative to the quarterly budget estimate was attributed to the decline in both recurrent and capital components during the period.

A breakdown of the total expenditure showed that the recurrent component accounted for 69.5 per cent, while capital and statutory transfers components accounted for 24.0 and 6.5 per cent, respectively. Further breakdown of the recurrent expenditure showed that the non-debt component accounted for 79.0 per cent, while debt service payments accounted for the balance of 21.0 per cent.

Thus, the fiscal operations of the Federal Government resulted in an estimated deficit of N114.05 billion or 0.95 per cent of GDP, compared with a proportionate budget deficit of N221.77 billion or 1.9 per cent of GDP for the third quarter 2013.