According to a review of the medium-term expenditure framework and fiscal strategy paper for 2022-2024, the Federal Government experienced a revenue shortfall of N1.4 trillion between January and May 2021.
A report obtained from the Federation Budget Office, the Federal Government’s projected revenue for the fiscal year 2021 is N7.9 trillion, with N3.2 trillion set aside as a pro-rata target for the period under consideration.
However, by May 2021, the government had only generated N1.8 trillion, or 56.25 per cent of the pro-rata estimate, resulting in an N1.4 trillion revenue shortfall.
During the review period, the total revenue of N1.8 trillion was made up of N423 billion in oil revenue, N618.76 billion in non-oil revenue, and N762.7 billion in other revenue streams, including N487.01 billion in independent revenue.
“As of May 2021, FGN’s retained revenue was N1.84 trillion, or 67% of the pro-rata target,” the study stated. The FGN’s portion of oil revenues was N423 billion (a 50% increase), while non-oil tax receipts were N618.76 billion (99.7 per cent of pro-rata).
Companies Income Tax and Value Added Tax revenues exceeded budget projections by N290.90 billion and N123.85 billion, respectively, accounting for 102 per cent and 125 per cent of the pro-rata targets for the period. Customs receipts totalled N204 billion, or 86% of the objective.
Other revenues totalled N762.7 billion, with independent revenues accounting for N487.01 billion.
Further examination of the report revealed that the government ran a three trillion Naira budget deficit during the same time period.
According to the report, the Federal Government released N4.8 trillion to cover expenditures made between January and May, accounting for 92.7 per cent of the prorated budget. “This does not include GOEs or project-related debt expenditures”.
N1.5tn was spent on personnel costs, including pensions; N973.13bn was spent on capital projects; and N1.8tn, the total revenue generated during the specified period, was spent on debt servicing.