Debt servicing gulped N1.8tn in five months, says FG

The Federal Government says it released N973.13bn for the implementation of capital projects contained in the 2021 budget between January and May.

It also disclosed that debt servicing gulped N1.8tn within the same timeframe.

The Minister of Finance, Budget and National Planning, Zainab Ahmed, disclosed these at the presentation of the draft for 2022-2024 Medium Term Expenditure Framework and Fiscal Strategy Paper in Abuja on Thursday.

According to the minister, as of May, the Federal Government had spent 92.7 per cent of the prorated budget, which amounted to N4.8tn.

Out of this amount, N1.8tn was released for debt servicing, which represented 37 per cent of expenditure; N1.5tn was spent on personnel cost, including pensions while N973.13bn was spent on capital projects.

The MTEF/FSP is the government’s pre-budget statement which is usually taken into consideration during the preparation of the budget estimates for Ministries, Departments and Agencies.

The MTEF/FSP presents the development priorities of the Federal Government for the period covered.