The Federal Government plans to spend 61.63 per cent of its planned 2024 budget on personnel and debt service costs, The PUNCH has learnt. The personnel and pension costs of N7.78tn and the debt service cost of N8.25tn make up N16.03tn out of the N26.01tn 2024 budget. The PUNCH also observed that the government would spend more on debt servicing than it would spend on paying the salaries and pensions of its workers. Also, the amount budgeted for personnel and pension costs is expected to increase from N5.87tn in 2023 to N7.78tn in the 2024 budget. This showed an increase of N1.91tn or 32.54 per cent amid concerns for a reduction in the cost of governance. The PUNCH also observed a 30.74 per cent increase in debt service cost from N6.31tn in 2023 to N8.25tn by 2023. The World Bank in June 2023 stated that the Federal Government’s spending on personnel costs and debt servicing exceeded total revenues in 2022. According to the Washington-based bank, this was the first time the Federal Government’s personnel costs and debt servicing surpassed its total revenue. The bank added that due to this, spending on capital expenditures weakened.
Punch