BudgIT: FG spent N19trn in 2023 — but generated N5.9trn revenue

BudgIT, a civic-tech non-profit organisation, says the federal government spent more than three times what it earned in revenue in 2023.

In a post on X on Monday, BudgIT said the government made revenue of N5.99 trillion, spent N19.50 trillion and recorded a deficit of N13.50 trillion — 225 percent of the total revenue.

The organisation said this is according to the 2023 fiscal accounts report of the accountant general of the federation.

“N3.80 trillion came from the Federation Account Allocation Committee (FAAC), FG share of independent revenue raked in N1.98 trillion,” BudgIT said.

BudgIT said the government share of the federation account contributed N2.39 trillion, exchange rate differences were N715.75 billion, while value-added tax (VAT) accrued for N441.87 billion.

According to BudgIT, debt servicing accounted for 43.9 percent of the budget at N8.56 trillion — the largest single expense.

The civic tech organisation said non-debt spending took up 27.8 percent at N5.42 trillion, while capital expenditure was 23 percent at N4.49 trillion.

It said a significant portion of government spending was directed toward debt servicing, surpassing the revenue generated.

“As a result, the government continues to drift away from fiscal responsibility by borrowing more than it earns, resulting in a deficit of N13.50tn,” BudgIT added.

On July 9, the budget office of the federation said the government spent N5.78 trillion on debt servicing in the first nine months of 2023.