New Telegraph

CBN: FG Recorded N816.53bn Fiscal Deficit In July

The Federal Government recorded a fiscal deficit of N816.53 billion in July, the Central Bank of Nigeria (CBN) has said. The apex bank, which disclosed this in its monthly economic report for July 2023, released yesterday, stated that “provisional fiscal deficit of the FGN, at N816.53 billion, contracted by 5.3 per cent, relative to the level in the preceding month, and was 9.1 per cent below the proportionate budget threshold.

The contraction reflected lags in capital releases in the face of improved revenue outturns.” According to the report, the FG’s retained revenue (provisional) rose in July, due to higher receipts from the government’s independent revenue and exchange gain while provisional FGN expenditure though above the level in June 2023, was below the target by N438.27 billion. Specifically, the report said: “At N564.13 billion, FGN retained revenue in July 2023 was 57.1 per cent, above collections in June 2023, but fell below the monthly target of N920.43 billion.

“At N1,380.66 billion in July 2023, the provisional FGN expenditure was N159.01 billion (13.0%) above the level in June 2023 but was below the target by N438.27 billion (24.1%). Recurrent expenditure at 74.2 per cent, maintained its dominance in total FGN spending, while capital outlay and transfers accounted for 20.8 and 5.0 per cent, respectively.” It further stated that “at N1,667.83 billion, Federation Account receipt exceeded the level in June 2023 by 61.9 per cent but was 5.5 percent short of the budget benchmark. The improved performance, relative to June 2023 figure was attributed, mainly, to increased collections from non-oil sources.

“Non-oil revenue continued to dominate total collection, accounting for 85.2 percent, while oil revenue accounted for the balance of 14.8 per cent. At N1,420.36 billion, non-oil revenue sur- passed collections in June 2023, and the monthly target by 79.2 and 47.8 per cent, respectively. The increased performance was attributed, largely, to increased collections in Corporate Income Tax (CIT), and FGN Independent Revenue. “Receipts from CIT rose by 141.3 per cent to N780.65 billion in July 2023, from N323.58 billion in June 2023, while FGN Independent Revenue increased by 295.6 per cent, to N218.57 billion in July 2023, from N55.25 billion in June 2023.”

However, the report said that while at N247.47 billion, oil revenue, exceeded the level in June 2023 by 4.1 per cent, driven by higher collections from Petroleum Profit Tax & Royalties, oil receipts remained below the proportion- ate monthly target of N803.63 billion by 69.2 per cent. On money market developments, the report said that total disbursements at the Standing Lending Facility (SLF) window rose to N616.44 billion in the review month, from N124.68 billion in the preceding month, with an average daily disbursement of N61.64 billion, compared with N0.53 billion in June 2023.

Similarly, deposits at the Standing Deposit Facility (SDF) window increased to N878.34 billion from N621.88 billion, with average daily deposit of N41.83 billion, compared with N32.73 billion in June 2023. Meanwhile, the report stated that aggregate foreign exchange inflow into the economy rose by 11.6 per cent, to $6.17 billion in July, from $5.53 billion in the pre- ceding month, adding that foreign exchange outflow also increased by 36.2 per cent to $3.16 billion from $2.32 billion in June 2023.

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