Sunday, October 17, 2021

Budget Deficit Rises To N20.64tn Under Buhari’s Administration

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The budget office has shown that Budget deficit has risen to N20.64tn under President Muhammadu Buhari in a data released.

The data covered periods from 2016 to 2020 revealed that more than N7.97tn was borrowed from foreign and domestic sources to fund these deficits.

Investopedia said a budget deficit occurs when expenses exceed revenue and indicate the financial health of a country.

The office added that the Federal Government generated a revenue of N3.42tn to fund the budget in 2020 and that total government spending between the period was N10.02tn, 0.43% above the N9.97tn budgeted.

Hence, the budget deficit for the year was N6.59tn (14.17%)of the 2020 GDP), partly financed by domestic borrowing of N2.06tn.