Nigeria – Federal government spending 2021.
In a fiscal year, the federal budget can weigh heavily on a country’s economy or Gross Domestic Product, or GDP.
The Nigerian government budget for 2021 is ₦14.57trn.
How is the government spending this budget and what are the deficits?
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Government expenditure and revenue
For the previous year, the total government budget of ₦10.27trn was later revised to N10.59trn in response to the pandemic pressure.
Budget Nigeria said the total government expenditure for 2020 was ₦10,017.26bn representing ₦43.34bn 0.43% higher than the ₦9,973.92bn projected for the year and 12.1% of the GDP.
The federal government collects revenues from all levels and divisions in the country. Its expenditures for 2021 like other years encompass several purchases, services, salaries, pension, payment, healthcare and more.
How will the FG spend the 2021 budget?
Healthcare
Though only 5% of Nigerians historically have health insurance access in Nigeria, the FG provides and finance for all citizens.
Health insurance is also provided for government employees and the total expenditure by the FG on healthcare in Nigeria is 3.8% of the GDP.
This is an insight that can further explain the number of its citizens with access to healthcare. Healthcare expenditure in Nigeria is projected to increase in 2021 with a forecast of ₦1,478 billion.
National Defense
Purchase of goods and services for the country’s defence system including weaponry and armoury is the direct responsibility of the FG. More so, the FG pays soldiers to provide national defence.
Defence expenditure in Nigeria represents about 0.4% of the federal government’s overall spending.
Education
The expenditure on education annually in Nigeria is in the range of 7% to 10% of the total Federal budget. The highest figure ever reached by the FG on education was in 2014 which was over 10% of the national budget.