FG allocates N7.76 trillion for salaries and more in 2023 budget

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FG allocates N7.76 trillion for salaries and more in 2023 budget
FG allocates N7.76 trillion for salaries and more in 2023 budget

The agreed-upon wage between the Federal Government and the Labour Congress, along with salaries for federal workers and other non-debt recurrent costs, are projected to consume N7.76 trillion in 2023, as outlined in data from both the initial 2023 budget and the recently signed 2023 supplementary budget.

The additional budget of N2.18 trillion was approved by the central government to cover new expenses, including the wage reward for workers resulting from the removal of the fuel subsidy.

In the supplementary budget, Minister of Budget and Economic Planning Abubakar Bagudu highlighted key allocations, including N605 billion for national defense and security to sustain and accelerate gains in the sector.

An additional N300 billion was allocated for the repair of bridges, such as the Eko and Third Mainland bridges, as well as the construction, rehabilitation, and maintenance of roads nationwide.

Notably, N210 billion was earmarked for the payment of wage awards, covering about 1.5 million federal government employees for the months of September through December 2023.

Appropriation details from the budget office reveal that N1.01 trillion of the total budget is allocated for recurrent expenditure, with N1.17 trillion allocated for capital expenditure.

The supplementary budget raises the total non-debt recurrent expenditure of the Federal Government to N7.76 trillion and capital expenditure to N4.53 trillion, resulting in an overall budget increase to N19.81 trillion.

Excluding debt servicing, the budget totals N13.26 trillion.

Of the N7.76 trillion allocated for recurrent expenditure, at least N4.31 trillion (55.54%) will be allocated to salaries.

The government has already spent N978.10 billion on salaries in the first quarter of 2023, according to the 2023 Q1 implementation report.

N1.24 trillion has been expended on non-debt recurrent expenditure, and N175.45 billion on capital expenditure.

The government has borrowed N2.30 trillion to finance its budget, with a predicted fiscal deficit of N9.01 trillion for the year.

The Federal Government has expressed concerns over escalating expenditure costs amid declining revenues.

The Accountant General of the Federation, Mrs. Oluwatoyin Madein, emphasized the need to continuously address revenue generation strategies in the face of economic challenges and rising expenses.

Nigeria’s revenue challenges are well-documented, stemming from falling oil production and the persistent challenge of economic diversification, as highlighted by former Minister of Finance, Budget, and National Planning, Zainab Ahmed.