PRESIDENT Muhammadu Buhari has written to the National Assembly, demanding the increase of the projected Federal Government aggregate expenditure for the 2022 budget from N13.98 trillion to N16.45 trillion.
The projected increase expenditure, including Government owned enterprises and project-ted loans is by N2.47 trillion of the initial proposal of N13.98 trillion.
President Buhari made the demand in a submission of the Revised 2022-2024 Medium Term Fiscal Framework (MTFF), accompanied by a letter read by Speaker of the House of Representatives, Femi Gbajabiamila at plenary on Tuesday.
According to the President, the increase in expenditure is due to N100 billion additional provision to the Independent National Electoral Commission)INEC) to cater for 2023 General Elections and the provision of N54 billion to the National Agency for Science and Engineering Infrastructure NASENI, which represents 1% Federal Government Share of Federation Account.
The letter identified other reasons for the increase as: “additional provision of N510 billion in the Service Wide Votes to cater for National Poverty Reduction with Growth Strategy (N300 billion), Police Operations Fund (N50 billion), hazard allowance for health workers (N50 billion), public service wage adjustments (additional N80 billion), and MDAs’ Electricity Bills Debt (additional N37 billion)”.
The rise is also due to additional capital provision of N1.70 trillion, attributed to projected increases in: “Capital supplementation by N179.1 billion; GOES capital by N222.1 billion; TETFUND expenditure by N290.7 billion;
-Multi-lateral / Bi-lateral Project-tied loans by N517.5 billion; and, MDAs capital expenditure by N390.5 billion (including N178.1 billion provision for population and housing census to be carried out in 2022)”.
There is also a projected increase of fiscal (budget) deficit by N692.0 billion, representing 3.42% of GDP from 3.05% of GDP in the initial fiscal deficit estimate of N5.62 trillion.
Buhari further stated that it was necessary to revise the MTEF to reflect the new fiscal terms in the recently signed Petroleum Industry Act (PIA) 2021, as well as other critical expenditures in the 2022 Budget.
