FEC approves proposed N16.39trn 2022 budget

 

The Federal Executive Council (FEC) has approved the 2022 appropriation bill for an aggregate expenditure of N16.39 trillion.

 

The FEC gave the approval at its weekly meeting presided over by President Muhammadu Buhari on Wednesday.

 

The federal government affirmed that its plan to do more borrowings to finance the N6.258 trillion deficit in the proposed 2022 budget, notwithstanding the crisis that has trailed the previous borrowings.

 

Earlier, the senate passed a revised version of the medium term expenditure framework (MTEF) and fiscal strategy paper (FSP) for the 2022 budget. The upper legislative chamber reduced the 2022 budget by N60 billion from N16.45 trillion sent by the president.

 

In July, the federal executive council (FEC) had approved N13.98 trillion for the proposed 2022 budget sum.

 

Zainab Ahmed, minister of finance, budget and national planning, made this disclosure while briefing state house correspondents, maintaining that government would continue to borrow to fund infrastructure projects.

 

“If we just depend on the revenues that we get, even though our revenues have increased, the operational expenditure of government, including salaries and other overheads, is barely covered or swallowed up by the revenue,” Ahmed said.

 

 “So, we need to borrow to be able to build these projects that will ensure that we’re able to develop on a sustainable basis.

 

“Nigeria’s borrowing has been of great concern and has elicited a lot of discussions. But if you look at the total size of the borrowing, it is still within healthy and sustainable limits. As at July 2021, the total borrowing is 23 percent of GDP.”