The Federal Government has proposed to borrow N4.89trn domestic and foreign loans to finance the 2022 budget deficit of N5.62trn.
This is contained in the highlights of 2022-2024 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper(FSP) presented to the House of Representatives on Monday.
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The Minister of Finance, Budget and National Planning, Zainab Ahmed, in her presentation said the three year projections were based on the key parameters of the budgets.
According to her, the federal government will also reduce the capital expenditure allocation of Ministries Departments and Agencies (MDAs) in the budget by N259.31 billion.
She disclosed that the budget deficit projected for 2022 is N5.62 trillion an increase over the N5.60 trillion in 2021.
“The deficit is going to be financed by new foreign borrowing and domestic borrowing, both domestic and foreign in the sum of N4.89 trillion. Then, privatisation proceeds of N90.73 billion and drawdowns from existing project titles of N635 billion,” she said.