Friday, 20 December 2013

Nigeria's Budget Breakdown 2014

Here is the breakdown of the budget for the fiscal year 2014. We can only hope and pray this budget goes beyond 40% implementation. Remember its an election year.We all know budget presentations are just  political noise.Lets just wait and see if this time would be just different.

Baseline Assumptions
*Benchmark Oil Price: $77.5pb
*Budgeted Oil Production: 2.3883mbpd
*Average Exchange Rate: N160/$, same as in 2013
*Real GDP Growth Rate: 6.75%

Revenue Projections
*Gross Federally Collectible Revenue: N10.88 trillion
*Gross Federally Collectible Oil & Gas Revenue: N7.16 trillion
*Total deductions, including cost of crude oil production, subsidy payments, and domestic gas development is N2.15 trillion, same as in 2013.
*Subsidy payments were maintained at the 2013 level of N971.1 billion.
*Gross Federally Collectible Non-Oil Revenue: N3.29 trillion
*FGN Budget Revenue: N3.73 trillion

Expenditure Projections
*Aggregate Expenditure (Net of SURE-P): N4.642 trillion
*Aggregate Expenditure (Inclusive of SURE-P): N4.910 trillion
*Statutory Transfers: N399.7 billion
*INEC’s expenditure is to increase from the N32 billion provisioned in 2013 to N45 billion. This is to enable the Commission intensify preparations towards the 2014 elections.

*National Assembly’s allocation is to be maintained at the 2013 level of N150 billion.
*The provision for debt service is N712 billionfrom the 2013 level of N591.8 billion.
*Recurrent (non-debt) Spending: N2.43 trillionfrom N2.80 trillion in 2013
*Personnel cost increased slightly from the 2013 amendment Budget provision of N1.718 trillion to N1.723 trillionfor 2014.
*Capital Expenditure: N1.100 trillion
lShare of Capital in total Expenditure: 27.29%down from 31.9% in 2013 reflecting the increased allocation to pension as well as high wage bill
*Share of Recurrent in total Spending: 72.71%
*Provision for SURE-P: N268.37 billion

Fiscal Balance
*Fiscal Deficit: N911.96 billion
*Fiscal Deficit as share of GDP: 1.90
*New Borrowing Requirement: N571 billion, a decrease from N577 billion in 2013

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