Budget 2013 and the Drive Towards Inclusive Economic Growth

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

Publication Date: October, 2012

Document Size: 5 pages

The budget proposal for fiscal year 2013 was presented to the joint session of the national assembly by President Goodluck Jonathan on October 10, 2012. Titled ‘Budget of Fiscal Consolidation with Inclusive Growth’, the budget proposal is tied to the 2013-2015 Medium Term Expenditure Framework (MTEF) which provides the fiscal path for the next three years. Table 1 shows that the total expenditure of N4.92trn is 4.8% higher than the approved expenditure for 2012 while the total revenue accruable to the federal government is projected at N3.89trn, 9.2% higher than the budgeted N3.56trn in 2012. Juxtaposing the planned expenditure and projected revenue for 2013, the government 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 the expenditure shows that a total of N1.54trn is projected to be spent on capital projects compared to N1.34trn in 2012 while recurrent expenditure is down marginally by 0.6% to N2.41trn. Statutory transfers are down by 4.5% to N380bn from N398bn in 2012.