Federal Government Deficit Hits N409.39 Billion in August

The Central Bank of Nigeria (CBN) has said the Federal Government spent N409.39 billion more than it generated in the month of August.

This is despite the Federal Government revenue generation rising by 2.7 percent to N767.55 billion in the month.

Still, the amount generated was below the N846.84 billion budget benchmark by 9.4 percent, the apex bank disclosed in its latest economic report.

It attributed the increase in revenue to the recent improvement in oil revenue sources.

“Retained revenue of the Federal Government in August 2020 was N290.31bn, while total expenditure stood at N699.70bn, resulting in a deficit of N409.39bn,” it said.

The apex bank said oil revenue rose in August because of the improvement made to collection from Petroleum Profit Tax and royalties, which increased by 103.9 percent when compared with July receipts.

It said, “With regard to non-oil revenue performance, collections fell below their levels in July 2020 and August 2019 by 24.6 per cent and 15.1 per cent respectively.

“Notably, receipts from Corporate Tax declined by 45.4 per cent and 30.7 per cent vis-à-vis July 2020 and August 2019 positions respectively.

“Value Added Tax, however, increased by 2.9 per cent and 40.8 per cent in comparison with receipts in July 2020 and August 2019 respectively.”