President Muhammadu Buhari has warned that the government would initiate additional measures to cut the cost of governance and discontinue fuel subsidies.
He revealed this with a proposed spending plan of N20.51 trillion in his last year in office.
Buhari said while the government was mindful of the adverse effect on society of a drastic reduction in public spending, the current fiscal impact of the petrol subsidy has “clearly shown that the policy is unsustainable.”
The president spoke while presenting to a joint sitting of the National Assembly the 2023 “Budget of Fiscal Sustainability and Transition”.
Buhari said the principal objective of the government in 2023 was “to maintain financial viability and ensure a smooth transition to the incoming Administration,” and “it reflects the serious challenges currently facing our country, key reforms necessary to address them, and imperatives to achieve higher, more inclusive, diversified and sustainable growth.”
The proposed N20.51 trillion 2023 expenditure comprises the followings:
Statutory Transfers of N744.11 billion;
Non-debt Recurrent Costs of N8.27 trillion;
Personnel Costs of N4.99 trillion; Pensions, Gratuities, and Retirees’ Benefits of N854.8 billion; Overheads of N1.11 trillion; Capital Expenditure of N5.35 trillion, including the capital component of Statutory Transfers; Debt Service of N6.31 trillion; and Sinking Fund of N247.73 billion to retire certain maturing bonds.
To finance the deficit mainly by new borrowings totaling N8.80 trillion, N206.18 billion from Privatization Proceeds, and N1.77 trillion drawdowns on bilateral/multilateral loans secured for specific development projects/programs.
