The Central Bank of Nigeria (CBN) has disclosed that the federal government recorded a fiscal deficit of N699.4billion, after recording an aggregate expenditure of N1.09trillion and retained revenue of N394.11billion in July.
The apex bank in its economic report for July disclosed that the government in June 2021 recorded a deficit of N688.79billion when its aggregate expenditure was N1,004.25 billion and retained revenue of N315.46billion.
According to the report, the impact of improved revenue out-turn in July 2021 was weakened by 8.9 per cent growth in expenditure, triggering an expansion of the fiscal deficit.
The report said: “Payoffs from expenditure rationalisation and revenue mobilization efforts appeared subdued by new and rising non-discretionary spending, particularly on security and COVID-19 mitigation measures. Consequently, the provisional fiscal deficit of the FGN, at N699.48 billion, exceeded the position in June 2021 and the budget benchmark by 1.6 per cent and 49.8 per cent, respectively.”
The economic report by CBN explained that growth in FGN retained revenue was owing to the 60.4 per cent rise in receipt from the Federation Account. “Retained revenue of the Federal Government increased by 24.9 per cent to N394.11 billion, relative to June 2021.
