With the rate at which things are going at the moment, it seems unlikely that the 2015 budget will be passed by the national assembly before the general elections as lawmakers are already in full campaign mode, relegating other businesses to a later date.
But that does not mean we should not scrutinise the budget pending when lawmakers are ready to do the needful. Unfortunately, not much is being said about that most important document.
Thankfully, BudgIT has a new Infographic summarising the 2015 budget that could maybe help kick-start the conversation.
As you can see, whereas the FG expects to get revenues of about N3.6trillion, it plans to spend N4.35trillion. This means that we would not even be able to fund our budget with what we make in the course of the year. In simple English, Nigeria would have to borrow to finance the shortfall of the budget.
The N4.35trillion which is to be expended is less than what was budgeted as expenditure last year (N4.695trillion). This clearly shows that the crash in oil prices seriously affected Nigeria’s budget for the year.
Perhaps what is most shocking about the budget is that just 9% of the total is left for capital expenditure, while a whopping 91% is recurrent. Of this recurrent budget, salaries and allowances would take the largest share of 42%, while debt servicing will gulp 22%.
See Infographic below: