The Federal Government’s expenditure in the first six months of 2022 exceeded revenue by N6.23tn, latest figures obtained from the Central Bank of Nigeria has revealed.

According to the second quarter economic report on fiscal sector development compiled from the CBN staff estimates, the Federal Government recorded N3.2tn and N2.74tn fiscal deficit in the first and second quarters of 2022.

The drop in FGN expenditure, compared with the decline in FGN retained revenue, induced a contraction in fiscal deficits in the second quarter of 2022 from first quarter report.

It however exceeded the Federal Government’s fiscal deficit budget of N1.6tn for the period under review.

Driven by a reduction in capital spending, the provisional aggregate expenditure of the FGN fell by 17.1 per cent and 11.4 per cent, relative to the level in the first quarter of 2022 and the quarterly target, respectively.

The provisional aggregate expenditure of the FGN amounted to N3.79tn in the review period.

Gross federation receipts in the second quarter of 2022, at N3.2tn, exceeded the level in the first quarter of 2022, by 40.8 per cent, but fell below the benchmark of N4.6tn by 30.3 per cent.

The higher revenue outcome was attributed to the sustained rise in crude oil prices and the seasonality effect on the corporate income tax receipt.