BREAKING: We’ll Borrow More To Finance N6.258trn 2022 Budget Deficit - FG

BREAKING: We’ll Borrow More To Finance N6.258trn 2022 Budget Deficit - FG

October 6, 2021

Amid outcry against frequent borrowing, the federal government has spoken of its plan to do more borrowings to finance the N6.258 trillion deficit in the proposed 2022 budget.

This is coming as the Federal Executive Council (FEC) approved the 2022 Appropriation Bill for an aggregate expenditure of N16.39 trillion.

The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, who disclosed the council’s approval at Wednesday’s meeting presided over by President Muhammadu Buhari, maintained that government would continue to borrow to fund infrastructure projects as it does not get enough from its revenues.

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She noted that Nigeria’s revenues could barely accommodate services even as she emphasized that despite the concerns, its borrowings are still acceptable limits.

She said: “If we just depend on the revenues that we get, even though our revenues have increased, the operational expenditure of government, including salaries and other overheads, is barely covered or swallowed up by the revenue.

“So, we need to borrow to be able to build these projects that will ensure that we’re able to develop on a sustainable basis.

“Nigeria’s boring, has been of great concern and has elicited a lot of discussions. But if you look at the total size of the borrowing, it is still within healthy and sustainable limits. As at July 2021, the total borrowing is 23% of GDP.”

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