Business

FG’s fiscal deficit hits N643 billion in one month despite higher revenue

FG’s fiscal deficit hits N643 billion in one month despite higher revenue

The fiscal conditions were noted to be challenging especially in April 2022 despite the country having higher revenue outcomes.

In April, federally collected revenue rose by 66.3 percent when compared to March, but fell short of the budget by 14.7 percent.

Provisional federally collected revenue performance, according to the report, was boosted by enhanced oil receipts, improved economic activities and the effect of the booming income associated with tax receipts.

While the FGN retained revenue increased by 14.3 percent, a 23.8 percent rise in total expenditure created an offset which resulted in a 30.9 percent expansion in the overall deficit.

Petroleum Profit Tax & royalty and corporate tax were reported to play a massive role in the increased revenue.

While also comparing the sources of revenue, at 65.6 percent, non-oil revenue sources maintained its dominance of gross federation receipts, while oil revenue constituted the balance of 34.4 percent.

The report also revealed that during the period, oil revenue, at N450.06bn, rose by 72.5 per cent, above the level in the preceding month, but below the prorated budget by 43.2 per cent.

Also, non-oil receipts at N857.68 billion, towered above the March earnings and the prorated budget by 63.3 percent and 8.8 per cent, respectively.

The report which showed an increase in non-oil revenue over oil source revenue explained the surge in non-oil revenue as a result of the rise in tax payments, an activity which stemmed from the corporate tax collection deadline given to companies to file in their annual tax returns.

Add Comment

Click here to post a comment

Categories

Newsletter

Loading