The Federal Government has stated that the 2023 budget, which was approved at N21.82 trillion, will have a N11.34 trillion budget deficit.
It was also revealed that the budget will be financed through domestic and foreign sources and also multi-lateral-bilateral loan drawdowns.
According to Nairametrics, this was disclosed by the Minister of Finance, Zainab Ahmed on Wednesday during the presentation of the 2023 N21.8 trillion budget.
According to Ahmed, debt service accounts for 29% of government spending at N6.31 trillion.
“This is 71% higher than the estimate for 2022, including interest repayment of N1.2 trillion for CBN overdraft called ways and means loans.
“You will see that statutory transfer is N967 billion, and debt service N6.3 trillion, higher than N3.685 trillion projected in 2022 budgeted”
The Minister revealed that the budget deficit will be mostly funded by borrowings.
“The overall budget deficit is N11.34 trillion for 2023 and it would be financed through, Domestic sources: 7.04 trillion; Foreign sources: N1.76 trillion; Multi-lateral-bilateral loan drawdowns N1.77 bn and Privatisation proceeds N208.18 bn”. She added.