It was reported that in 2020, out of total revenue of N3.42 trillion, the federal government spent N3.34 trillion on debt servicing, implying that for every N100 earned as revenue, N97 was spent on debt servicing.
Giving the breakdown, the finance minister said revenue generated from oil was N492.44 billion, representing 49 per cent performance, while the revenue from the non-oil sector totalled N778.18 trillion at 104.5 per cent performance, according to the News Agency of Nigeria (NAN).
She added that Companies Income Tax (CIT) and Value-Added Tax (VAT) collections are ahead of the budget targets with N397.02 billion and N129 billion respectively.
Ahmed said this represents 116.5 per cent and 108.2 per cent targets for the period.
The minister said that Customs collection was N234.02 billion at 92.1 per cent of target, adding that other revenues amounted to N922.09 billion, out of which independent revenue was N558.13 billion.
On the expenditure performance, the she disclosed that N5.81 trillion, representing 92.4 per cent of the budget had been spent, noting that it excludes GOEs and project-tied debt expenditure.
“Of the expenditure, N2.02 trillion was for debt servicing, which is 35 percent of the Federal Government expenditures and N1.795 trillion for personnel cost. This is including pension at 30.9 percent of Federal Government revenue,” she said
She further noted that as of June this year, N1.3 trillion, which represented 84.7 per cent, had been released for capital expenditure.
The minister said that the country faced serious economic challenges in 2020, with the microeconomic environment significantly disrupted by the COVID-19 pandemic, but that the economy made a slight recovery in the first quarter of 2021.
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