President Muhammado Bohari proposed a joint session of the National Assembly on October 7, 2022, a federal government’s budget for 2023. The budget is an opportunity to end the eight -year rule of the president, which begins in May 2015.
The federal government’s budget proposal for 2023 has been termed as a “budget for financial stability and transition.” This budget is formed to meet the target -targeting national development project from 2021 to 2025. It is believed that the budget promotes easily transition from the current administration to the next.
The possibility that the proposed budget will relieve Nigeria from their current situation, it is falling due to the outdated price of Nira, rising inflation, the country’s declining educational system, and almost complete destruction of all states through floods.
This article reviews the proposed budget for Nigeria 2023 and how it will affect the overall welfare of the population.
The proposed budget
The federal government proposes a budget of 20.51 trillion Naira, which is more than 19 % from the budget of 2022 and is the highest budget ever in the country’s history. In addition, the budget increases 19.76 trillion Naira by 750 billion naira, which was actually described in the financial strategy paper and medium -term framework for 2023-2025.
With more than 10 % of the proposed budget, the largest budget is allocated to the defense sector. This is important in view of the recent dangerous threats against extremists in the northeast, which have now extended to Abuja.
Repeated costs make the majority of the proposed budget costs, with a surprising 8.27 trillion naira (40.32 %) overall. With 6.31 trillion Nira (30.76 %), the loan service is second, followed by capital costs and public -owned enterprises, which spend the 5.35 trillion niras (26.08 %) and 2.42 trillion Naira (11.79 %) respectively at the third and fifth high expenditure levels.
The proposed budget is the risks of more than 70 than loan services and repeated expenditures. Repeated expenditure budgets are the costs that lead to operating expenses, such as salaries and wages, while the loan service budget is placed aside to pay interest and principal money on loans. According to the definition of repeated expenditure and loan service, when paid is paid in the future, the costs will not advance the overall development of the country.
The most terrifying thing is that only one -third of the loan service claims to be the entire proposed budget.
On the contrary, the capital costs are aimed at acquiring assets that benefit the nation and generate income, such as military hardware, road construction, construction of schools and hospitals. If the proposed budget is allocated for less than 30 % of capital costs, the country’s development goals are a mood.
The proposed budget also includes 247.73 billion niyara, personnel costs 4.99 trillion Naira, 1.1 trillion naira in overheads, and 744 billion nira funds in legal deductions. According to the above data, the loan service represents more than 100 % of all personnel and head -headed expenditures jointly and more than 121 % in all capital costs.
How will the budget be financed?
Many Nigerians and members of the international community are interested in how the federal government plans to fund the proposed budget, which will be the largest Nigeria’s largest after its establishment and the establishment of a total of 20.51 trillion Naira in 1914.
According to the federal government, 9.73 trillion Naira will be financed, which they intend to be born of the economy. The budget deficit in the proposed budget is 10.78 trillion Naira. 9.73 trillion niras pay for the tax will be paid by non -oil income through a total of 2.43 trillion Naira, which has a total of 2.42 trillion niyara, which has 2.21 trillion niras, and other revenue, 2.42 trillion niras, and other revenue revenue.
In the proposed budget, the deficit of 10.78 trillion Naira is a purpose that many people think will be difficult to achieve. The government could not cover the financing of the predicted deficit under the budget of 2022, which had a budget deficit 6.39 trillion Naira. 52.5 % of the total amount recommended is a budget proposal. The federal government will increase the proposed budget deficit through new loans through the privatization and sale of government assets in 8.8 trillion Naira, 206 billion Naira, and the repayment of 1.77 trillion Nira’s privileged loans.
In addition, claims for loan service represent more than 66 % of the expected income of 9.73 trillion Naira to financing the proposed budget. This means that for every Naira earned, the federal government earns more than 660 Naira, with 440 Naira to spend money.
Comparison between proposed 2023 budget and 2022 budget
| Budget assumption | Budget by 2022 November 2021 | Proposed budget until 2023 November 2022 |
|---|---|---|
| Inflation rate | 16.43 % | 20.77 % |
| GDP rate growth | 3.77 % | 3.65 % |
| Exchange Rate (CBN) | 4 404/ $ 1 | 40 440.63 |
| Oil benchmark price (per barrel) | $ 62 | $ 70 |
| The volume of oil production (barrel) | 1.78 million | 1.67 million |
| Frequent costs | 9 6.91 trillion | .2 8.27 trillion |
| Capital costs | ₦ 5.47 trillion | ₦ 5.35 trillion |
| Loan service | 61 3.61 trillion | ₦ 6.31 trillion |
| Legal transfer | 69 669.67 billion | 4 744.11 billion |
| Freight | 74 10.74 trillion | ₦ 9.73 trillion |
| Budget | . 17.13 trillion | .5 20.51 trillion |
| Deficit | ₦ 6.39 trillion | . 10.76 trillion |
The result and recommendation
The common people have closely examined the budget, and it is evident that a major budget is needed to present a clear way for Nigeria’s success. Nigerian residents are worried about a number of things, including paying the country’s annual loan service. The federal government should generally use this amount to advance the country’s development, but more than 30 % of the proposed budget has been allocated to serve loans.
In addition, the intention of collecting more loans is a process that will undoubtedly return to upset the nation. With the increase in the proposed loan service in the budget of 2023, that number will increase in the coming years.
How will the proposed budget affect my business?
With a proposed tax set over 9 trillion Naira, the federal government is bound to become a series of tax collection techniques to meet this goal.