FG revenue falls 12.6% below budget as non-oil receipts drop
July 16, 2013 | 10:24 am| | | Start Conversation
The Federal Government revenues for May 2013 were 12.6 percent below the budgeted estimates, largely as a result of weaker non-oil revenues.
The decline, relative to the monthly budget estimate, reflected largely the low receipts from Customs and Excise Duties, VAT, and the Education Tax Fund.
The Economic Report of May 2013 released by the Central Bank of Nigeria (CBN) yesterday, has revealed that Non-oil receipts (gross), at N177.73 billion or 21.5 percent of the total, were lower than both the monthly budget estimate and the level in the preceding month, by 40.8 and 4.2 per cent, respectively.
Oil accounts for about 80 percent of the total budgeted revenues, while non-oil taxes make up the remainder.
The estimated federally-collected revenue (gross), at N826.36 billion, fell below the provisional monthly budget estimate by 12.6 per cent, in May 2013, but exceeded the receipt in the preceding month by 2.5 percent, the Central Bank of Nigeria (CBN) said in the report.
Relative to the level in the corresponding period of 2012, gross federally collected revenue fell by 1.9 per cent.
Of the federally-collected revenue (gross), the sum of N527.43 billion (after accounting for all deductions and transfers) was transferred to the Federation Account for distribution among the three tiers of government and the 13.0 percent Derivation Fund.
The Federal Government received N246.69 billion, while the states and local governments received N125.12 billion and N96.47 billion, respectively.
The balance of N59.15 billion was credited to the 13.0 percent Derivation Fund for distribution to the oil-producing states.
From the VAT Pool Account, the Federal Government received N7.86 billion, while the state and local governments received N26.19 billion and N18.34 billion, respectively.
Overall, the total allocation to the three tiers of government from the Federation and VAT Pool Accounts amounted to N715.42 billion.
This was lower than the provisional monthly budget estimate of N729.44 billion and the level in the preceding month by 1.9 per cent and 1.3 per cent, respectively.
Provisional data from the report indicated that total non-oil export earnings at $ 252.30 million, was 14.2 and 28.0 per cent below the level in the preceding month and corresponding month of 2012, respectively.
The development reflected largely the decline in receipts from the industrial, minerals and food products sectors, according to the CBN.
A breakdown of receipts showed that proceeds of industrial, manufactured, agriculture, food products, and minerals sub-sectors stood at $ 60.86 million, $113.19million, $ 52.81million, $ 6.66million, and $ 18.78 million, respectively. There were no receipts recorded in the transport sector.
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