FG To Borrow N5.62trn To Finance Deficit in 2022 Budget —Finance Minister

The minister for Finance, Budget and National Planning, Zainab Ahmad said the Federal Government has proposed to borrow the sum of N5.62 trillion to finance deficits in the 2022 budget.

Zainab Ahmad, while presenting the 2022—2024 Medium Term Expenditure Framework (MTEF), and Fiscal Strategy Paper(FSP), said the budget for 2022, as proposed by the Federal Government, is N13.918trillion with the proposal to slash capital expenditure by N259.315 billions.

The minister’s statement partly read “on capital expenditure, the sum of N1,759,804,022,579, as opposed to the N2,019,119,204,546, will be available to Ministries Department and Agencies of government in 2022.”

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“the budget deficit and the financing items for the expenditure. The budget deficit that is projected for 2022 is N5.62 trillion, up from N5.60 trillion in 2021.”

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“The deficit is going to be financed by new foreign borrowing. And domestic borrowing, both domestic and foreign in the sum of N4.89 trillion, then privatisation proceeds of N90.73 billion and drawdowns from existing project titles of N635 billion.

“This amount represents 3.05 per cent of the estimated GDP, which is slightly above the 3 per cent threshold that is spent recommended in the Fiscal Responsibility Act.” She explained on the deficit.