The Federal Government’s expenditure exceeded its accrued revenue in the first six months of 2024, resulting in a budget deficit of N4.53tn, a new report from the budget office has indicated.
The deficit spending was driven by a 73.91 per cent increase in its expenditure which moderated the impact of improved revenue receipt of N8.70tn between January and June 2024.
An analysis of the newly released second-quarter budget implementation report obtained by our correspondent on Sunday revealed that the deficit was 29.85 per cent higher than N3.488tn recorded within the review period in 2023, but was N59.55bn (1.30 per cent) below the projected half-year deficit of N4.589tn.
It stated the amount was financed through domestic borrowing, increasing the nation’s debt profile. Economic analysts have expressed concerns about the nation’s debt sustainability, emphasizing the urgent need to diversify its revenue base.
In simple terms, a fiscal deficit happens when a government’s spending exceeds its revenue from taxes and other sources. It means the government is spending more money than it’s bringing in.
