Finance Minister, Ngozi Okonjo-Iweala has revealed that the Federal Government has been forced to borrow N473 billion to meet up with recurrent expenditure in the country. Okonjo-Iweala made the disclosure on Tuesday, May 5, 2015, while addressing journalists in Abuja. “Of the N882 billon budgetary provision for borrowing, the government has borrowed N473 billion to meet up with recurrent expenditure, including salaries and overheads. No capital release so far,” she said.
“Traditionally, the first part of the year witnessed low revenue because tax receipts come in from the middle of the year. This has compounded the challenges caused by the steep drop in revenues due to the oil price fall. As a consequence of the revenue challenges, there has been no capital budget release so far this year but we have kept the recurrent expenditure going,”she added.
The minister also stated that the 2015 budget had provided the sum of N145.2 billion for oil subsidy payments despite reports to the contrary.