The Federal Government recorded a 29 percent year-on-year (YoY) decline in deficit spending to N2.83 trillion deficit in the first quarter of 2024 (Q1’24) from N3.99 trillion recorded in same period of last year, Q1’23.
The Central Bank of Nigeria’s, CBN, disclosed this in its Statistical Bulletin for Q1’24.
Vanguard analysis showed that fall in deficit was driven by 20.5 per cent YoY rise in revenue and 15.8 per cent YoY decline in expenditure.
According to the CBN, FG’s expenditure fell at N4.59 trillion in Q1’24, down by 15.8 percent from N5.45 trillion in Q1’23.
However, revenue grew by 20.5 percent, YoY to N1.76 trillion in Q1’24 from N1.46 trillion in Q1’23.
In its Macro Economy Outlook for 2024, CBN noted that the fiscal operations of the FGN in 2024 is anticipated to result in a projected deficit of 3.9 per cent of GDP, that will be financed through new borrowings, asset sales, privatisation proceeds, and multilateral/bilateral project-tied loans.
The apex bank also projected FG expenditure including GOEs and project tied loans to reach N28.77 trillion by 2024 ending.
On the revenue side, CBN expects the FGN revenue to grow to ¦ 19.59 trillion in 2024 from N8,361.84 trillion estimated for 2023 .
It noted that its fiscal outlook is hinged on government drive to stimulate economic activity and ease the pressure on households.
“The fiscal outlook is generally optimistic, riding on reforms to enhance tax administration and the efficiency of public expenditure and leaning on the MediumTerm Expenditure Framework and Fiscal Strategy Papers 2024-2026.
“The projections incorporate global and domestic factors that shape the trajectory of public finance and define the underlying automatic stabilisers in fiscal operations”, it added.