How much would VAT increase add to states’ coffers? – BudgIT
Taking critical looks at the Federal Government’s proposed VAT rate increase, from 5% to 7.2%, BudgIT has analysed what that “revenue uptake” would mean, and also the implications, for each state in Nigeria (assuming collection charges remain the same).
ANALYSIS: 2018 Q4 Budget Implementation Report
As part of its transparency drive, BudgIT has analysed the Federal Government Q4 Budget Implementation Report, amplifying key insights while spurring citizens to ask questions.
According to from the report, FG’s total revenue in 2018 geared up to N3.86tn, with oil revenue accounting for 51% of the total revenue. Also, Company Income Tax (CIT) saw impressive growth of 21%. On debt servicing, it was discovered that the government spent a total of N2.09tn in 2018, making it the highest spent on debt servicing ever.
THREAD: We are ending the week with infographics on #2018budget performance after our long text thread.
— BudgIT Nigeria (@BudgITng) September 6, 2019
We emphasised that Nigeria needs improved revenues. #AskQuestions pic.twitter.com/XGIWHmnNym
Nigeria Faces Huge Revenue Challenge Amidst Escalating Debt Costs
Going by the figures above, Nigeria might be facing another financial crisis as a result of government failing revenues.
In an analysis of the federal government 2018 budget performance, released on September 2, 2019, BudgIT pointed out that the government spent a sum of N7.51tn based on a total revenue of N3.86tn, creating a deficit of N3.64tn. It also noted that while FG planned to earn N7.16tn in 2018, it was only able to reach N3.85tn, which represents 54% revenue performance.
100 level student kidnaps own sister in Taraba
Our examination shows: the government is also spending more on debt servicing at the same time its debt profile is growing astronomically. Although it recorded a revenue of N3.86tn, FG spent N5.86tn on recurrent expenditure, meaning that N2tn was borrowed to fund recurrent expenses.
