The federal government’s total expenditure on financing of the national budget stood at N3.38 trillion representing N502.29 billion (17.43 per cent) in the first quarter of 2021.
The information is contained in the 2021 first quarter budget performance breakdown that was issued by the minister of finance, budget and national planning, Mrs. Zainab Ahmed.
According to the performance report, N1.09 trillion was spent on non-debt recurrent expenditure in the first quarter of 2021. This represents a decrease of N313.99 billion (22.26 per cent) and N50.79 billion (4.43 per cent) below the quarterly estimate of N1.4 billion and N1.14 trillion recorded in the first quarter of 2020 respectively. Statutory Transfers amounted to N124.13 billion during the review period.
A total of N384.52 billion was released and cash-backed in the first quarter of 2021 for the implementation of
2021 capital projects and programmes of Ministries, Departments and Agencies (MDAs).
According to the report that was published on the website of the budget office of the federation, a total of N1.09 trillion was received to fund the national budget in the first quarter of 2021.
This comprised N299.33 billion (27.43 per cent) oil revenues and N792.09 billion (72.57 per cent) non-oil revenue. The amount received was N905.19 billion (45.34 per cent) below the quarterly budget projection and N99.17 billion (9.99 per cent) above the N992.25 billion reported in the first quarter of 2020.
N813.10 billion was spent on debt service in the first quarter of 2021, indicating an increase of N32.01 billion (4.10 per cent) above the N781.10 billion projected for the quarter. The sum of N581.27 billion was used for domestic debt servicing while N231.83 billion was used for external debt service during the period under review.
“The revenue and expenditure outturn of the federal government resulted in a fiscal deficit of N2.29 billion during the quarter (6.43 per cent of the 2021 quarterly GDP) Mrs Ahmed said in the report.
The first quarter deficit was N1.07 billion (87.51 per cent) higher than the projected quarterly fiscal deficit of N1.2 billion. The 2021 fiscal deficit was also higher than the N1.37 billion deficit recorded in first quarter of 2020. The deficit was partly-financed through domestic borrowing of N550.0 billion, she added.
The finance minister said government continued to implement public expenditure reform initiatives during the period, including the Integrated Payroll and Personnel Information System (IPPIS) to higher institutions and introduction of the bottom-up cash plan module.
Average oil production and lifting (including Condensates) in the first quarter of 2021 was put at 1.72mbpd and 1.51mbpd respectively. Oil production was 0.14mbpd (7.53 per cent) below the 1.86mbpd benchmark for the 2021 Budget.
Aggregate revenue of the federation in the 2021 fiscal framework, gross federally Collectible Revenue is projected at N12.29 billion, comprising N5.18 billion (42.17 per cent) oil revenue and N7.11 billion (57.83 per cent) other revenues. Gross oil revenue in the first quarter of 2021 stood at N858.34 billion representing a N438.05 billion (33.79 per cent) decrease from the N1.29 billion quarterly projection in the 2021 budget. The performance in the first quarter of 2021 was also below the level in the corresponding period of 2020.