Why is our government always borrowing money to fund national budget?
Let’s do the Maths; WHERE IS THE BALANCE?
I have seen COMMENTS on Social Media like if FIRS generate money this much, why then borrowing to fund the budget? That, ‘If the FG can earn as high as N15 Trillion, then why do they need to borrow to fund a budget of N9 Trillion’?
I will start by asking a question and then proceed to answer the question.
Q: What are the revenue collection agencies of Nigeria?
A: Nigeria has many Revenue Collection Agencies, but the major ones are: FIRS, NCS, DPR, Others (NPA, NIMASSA, JAMB etc). #WhereIsTheBalance?
FIRS – Collects the following taxes on behalf of the Federal Republic of Nigeria.
Company Income Tax (CIT)
Petroleum Profit Tax (PPT)
Personal Income Tax
Capital Gains Tax
Nigerian Customs Services
Custom and Excise Duties.
Department of Petroleum Resources (via the NNPC)
Royalties on Oil Producing fields
Rent accruing from awarded concession
Gas flaring penalties.
Some in USD proceeds and some in Naira proceeds.
A: They are paid into the Federation Account from where a committee known as FAAC meets monthly to divide it among the Federating units in accordance to the revenue sharing formula.
Q: What is the sharing formula used by FAAC?
A: The sharing formula is
A: No. The VAT collected by FIRS and paid into the Federation Account is shared with a different formula.
Q: What of the N9 Trillion Budget, then ?
A: The N9 Trillion Budget is the budget of the Federal Government of Nigeria, FGN, and NOT the FEDERAL REPUBLIC OF NIGERIA, which includes the 36 States plus FCT (1), all the 774 LGA that made up this Federal Republic of Nigeria.
This means that the FG can only Budget on its portion of Federally-collected Revenue and not on the Collectable Revenue. From our estimate, the maximum revenue available to the FG would be N6.5 Trillion, meanwhile FG wishes to spend N9 Trillion. Meaning in layman term, FG is having less money that it desires to spend, out of necessities. Therefore, the FG must borrow the difference between its desired spend of N9 Trillion and what it has of N6.5 Trillion. Do the maths : N2.5 Trillion !
This is what we call Budget DEFICIT !!!
Q : So where is the balance ?
A: The Balance is with your State Government, your Local Government.
Please engage those you elected to run the affairs of these two tiers of government: Your Governors and his team; your LGA Chairman and His/her Councillors. Challenge them to show you what they have done and are doing with the balance of N7.5 Trillion (by our rough estimate); as well as, the monies they collect locally from you as IGR (Internally-Generated Revenue)
The money pilferage is at your level. People you sent to represent you. As for the efficacies of our budgeting and performance, we are coming to ask the FG cogent questions, too.
By C. Fatanmi.
Just look at this scenario where a state government receives allocations on monthly basis, collected Paris club fund, bailout fund… instead, salaries are not paid, workers are owned countless numbers of months, never heard of any commissioned state own projects from day1 in office. So, what on earth does the state government uses the funds for? All we hear and they’re good at is screening and retrenchment of poor civil servants trying to earn legitimately and put food on the table!!!
Nobody to prosecute anybody nor ask sensitive questions, the presidency is castrated, senators, senate president, nobody in house of representative that can say nor do something but every single larger percentage of them go to the house to have a nap and get paid for doing that and of cause represents their pockets and interest, the next thing you gonna hear is; “President Muhammadu Buhari, in a letter written to Senate President Ahmed Lawan, which was read during Tuesday’s plenary, requested for the resolution of the Senate for the approval of the sum to be issued to the Kogi State Government.”
If I OlusogoDAViD am a thief, do you think I’ll have the guts to arrest and prosecute my kind?
“Challenge them to show you what they have done and are doing with the balance of N7.5 Trillion (by our rough estimate); as well as, the monies they collect locally from you as IGR (Internally-Generated Revenue).” How can we challenge them when they have our balls in their hands, they’ve strangled the citizenry, impoverished us all, when the hope of common man “law house” also is in the pocket of slick, arms-less, pen-thieves. What should the common man do? Wait patiently for ARMAGEDDON or APOCALYPSE cause presently Nigeria is obviously a ticking bomb mix with volcano waiting for explosion of ticking bomb to erupt that will or may never occurred cause we Nigerians are not tired of the hardship yet.
Have done the widow’s mighty I think could spark the effective needed change, ain’t you gonna do your bit…?
God bless Nigeria!!!
Áyò ní ooooooo
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