The deficit spending of the Federal Government, FG, rose by 51 per cent, year-on-year, YoY, to N5.1 trillion in seven months to July 2021, driven by rising non-discretionary spending on security and COVID-19 mitigation measures, IgbereTV reports.
Public Finance analysis of data on the FG’s fiscal activities in the seven months to July (7mths-2021), showed that revenue rose to N2.45 trillion from N2.17 trillion in the corresponding period of 2020 (7mths-2020), indicating 13 per cent increase.
The above resulted in a deficit of N5.1 trillion in 7mth-2021, representing, 51 per cent, YoY increase when compared to the N3.36 trillion recorded in 7mths-2020.
Consequently, the FG is projected to exceed the budget deficit of N5.62 trillion for 2021, as the average monthly deficit recorded in 7mths-2021, at N729 billion, translates to N8.74 trillion full year deficit.
