President Muhammadu Buhari on Friday presented the 2023 budget proposal of N20.5 trillion to a joint session of the National Assembly (NASS).
Accompanied by Vice-President Yemi Osinbajo and other federal cabinet members, Buhari addressed the lawmakers, describing the 2023 appropriation bill as a budget of fiscal sustainability and transition.
He also noted that this 2023 budget would be his last budget to be laid before the NASS as the second tenure of his administration winds up on May 29, 2023, just as it is the last for the consideration and approval of the 9th National Assembly.
The president said: “A total expenditure of N20.51 trillion is proposed for the Federal Government in 2023. This includes 2.42 trillion Naira spending by Government-Owned Enterprises.
“The proposed N20.51 trillion 2023 expenditure comprises: 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.
”It also includes Overheads of N1.11 trillion and 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.
“We expect total fiscal operations of the Federal Government to result in a deficit of N10.78 trillion.”
This represents 4.78 per cent of estimated GDP, above the three per cent threshold set by the Fiscal Responsibility Act 2007, he explained.
Besides, the idea is to maintain fiscal stability and ensure a smooth transition to the incoming administration in 2023, Buhari stressed.