The Federal government spent N2.02 trillion on debt servicing in the first six months of this year.
This figure represents 90.5 per cent of the total revenue of N2.23tn generated by the federal government within the period.
This was disclosed by the Technical Adviser to the Director General of the Budget Office, Alfred Okon while presenting the “Overview of FGN 2022 Budget Call Circular” report.
Okon made the presentation on Thursday at a training on, “Government Integrated Financial Management Information System Budget Preparation Subsystem For Ministries, Department and Agencies.”
The report stated that as of June 2021, the federal government’s retained revenue was N2.23tn, which is 67.3 per cent of prorata target of N3.3tn for the review period.
The total revenue comprises oil revenue of N492.44bn, non-oil tax revenue of N778.18bn, Company income tax of N397.02bn, Value Added Tax of N129bn and Customs collections of N234.02bn.
Other revenues amounted to N922.09bn, of which Independent revenues was N558.13bn.
Okon noted that the N2.02tn used to service debt in the first half of this year represented 35 per cent of total expenditure of N5.81tn.
According to the report, “On the expenditure side, N5.81tn (representing 92.4% of the prorated budget) has been spent. This excludes GOEs’ and project-tied debt expenditures.
“N2.02tn was for debt service (35% of FGN expenditures); and N1.795tn for Personnel cost, including Pensions (30.9% of FGN revenues).”