FG to fund 2017 Budget with Recovered Loot

The Nigerian Government is planning to fund the 2017 budget deficit of N2.69 trn from recovered loots according to a report by Punch.

The proposal was made in the Medium Term Expenditure Framework/Fiscal Strategy Paper, which was submitted to the National Assembly according to the news report.

The Senate only recently rejected the document stating that it was ’empty’.

In the document, the Federal Government plans to spend N6.68trn in 2017 and project a revenue of N4.16tn, leaving a deficit of N2.69tn.

The government indicated that the deficit will be funded through recovered loots and borrowings.

It read in part, “Based on the revenue and expenditure estimates, the fiscal deficit is estimated to increase by about N492bn or 22.32 per cent from the estimate of N2.2tn in 2016.

“However, while this remains below the maximum three per cent of the Gross Domestic Product stipulated in the Fiscal Responsibility Act, 2007, it is projected to take a downward turn afterwards.

“The deficit is to be financed mainly by borrowing as well as recoveries of misappropriated public funds/assets.”

“Borrowing will be geared towards funding critical capital projects that have potential to effectively increase productivity, and hence, provide mechanism for refinancing the debt,” it added.