Policy Brief & Alerts

October 18, 2012

Budget 2013 And The Drive Towards Inclusive Economic Growth

This
brief examines Nigerias Budget 2013, entitled Budget of Fiscal Consolidation
with Inclusive Growth and highlights key sectoral allocations of the budget
and their targets.

Download Label
March 13, 2018 - 4:00 am
application/pdf
583.66 kB
v.1.7 (stable)
Read →

Publication Date:October, 2012

Document Size: 5pages


The budget proposal for fiscal year 2013 was presented to the joint session of the national assemblyby President Goodluck Jonathan on October 10, 2012. Titled Budget of Fiscal Consolidation withInclusive Growth, the budget proposal is tied to the 2013-2015 Medium Term ExpenditureFramework (MTEF) which provides the fiscal path for the next three years. Table 1 shows that thetotal expenditure of N4.92trn is 4.8% higher than the approved expenditure for 2012 while the totalrevenue accruable to the federal government is projected at N3.89trn, 9.2% higher than the budgetedN3.56trn in 2012. Juxtaposing the planned expenditure and projected revenue for 2013, thegovernment hopes to reduce the fiscal deficit to 2.17% of GDP as against 2.85% of GDP in 2012.However, the amount set aside for debt servicing increased by 5.7% to N591bn. A break-down of theexpenditure shows that a total of N1.54trn is projected to be spent on capital projects compared toN1.34trn in 2012 while recurrent expenditure is down marginally by 0.6% to N2.41trn. Statutorytransfers are down by 4.5% to N380bn from N398bn in 2012.




Related

 

Nigeria Economic Update (Issue 42)

The NSE market indices recorded a bear market rally for the third consecutive week in September. Specifically, All-share index and Market Capitalization increased marginally by 0.31 percent to close at 28,335.40 points and N9.73 trillion respectively on September 30, 2016. Major drivers of the rally include; increased trade-volume of financial, agricultural and consumer-goods securities. The continued rise in market indices may be connected to a sustained investor confidence in the agricultural and financial sectors on the account of the ongoing activities of the government and the CBN to stabilize the sectors.

Enhancing Oil Sector Governance In Nigeria Through Transparency Reforms

The paper highlights the importance of oil sector transparency in order to support governments push towards structural reforms and inclusive growth.

Nigeria Economic Update (Issue 19)

A recent report by the National Bureau of Statistics (NBS) indicates that Internally Generated Revenue (IGR) at the subnational level decreased slightly between 2014 and 2015. Specifically, the report shows that on the average, the IGR of all 36 states declined by 3.6 per cent from N707.9 billion in 2014 to N683.6 billion in 20157. A further disaggregation reveals that while IGR in 11 states improved in 2015 compared to 2014, IGR in 24 states were below their 2014 levels. As expected, Lagos state generated the most IGR during the period. Given that domestic resource mobilization is the most viable alternative to complement the shortfalls (driven by lower oil prices) in budgetary allocations to states from the federal government, state governments need to do more to improve the effectiveness and efficiency of revenue collection.

Nigeria Economic Update (Issue 25)

Naira appreciated in the week under review. At the parallel market, naira gained 0.54 percent to exchange at N368/$ on June 23, 20175. This is at the backdrop of injections into the forex market by the CBN to the tune of $195 million at the beginning of the review week, to meet various forex demands. This is amid a slight week-on-week increase in the external reserves (by 0.1 percent to $30.23 billion). Despite the recent naira appreciation, the long-term prospects seem bleak given that the ongoing intervention that seeks to stabilize naira by depleting reserves is unsustainable.