THE total federally collected revenue fell by 14.9 per cent in the second quarter of 2007 to N1.094 trillion although nation�s Gross Domestic Product (GDP) growth rate etched up to 5.73 per cent.
The Central Bank (CBN) in its economic report for the second quarter of the year released last week attributed the fall in the federally collected revenue to the restiveness in the Niger Delta region.
It said: �Aggregate output growth measured by the Gross Domestic Product (GDP) was estimated at 5.73 per cent during the second quarter of 2007, compared with 5.65 per cent in the preceding quarter. The growth was driven by the non-oil sector, which was estimated at 9.2 per cent.
�Total federally-collected revenue during the second quarter of 2007 stood at N1, 094.25 billion, representing a decline of 11.2 and 10.6 per cent from the proportionate budget estimate and the level in the preceding quarter, respectively. Total federally collected revenue fell by 14.9 per cent, compared with the corresponding period of 2006.
�At N917.09 billion, oil receipts which constituted 83.8 per cent of the total, declined by 3.6 and 10.0 per cent from the budget estimate and the level in the preceding quarter, respectively.”
The fall in oil receipts relative to the budget estimate was blamed on the restiveness in the Niger Delta region. Similarly, non-oil receipts at N177.15 billion or 16.2 per cent of the total was lower than the receipts in the preceding quarter and the budget estimate by 14.0 and 36.9 per cent, respectively. The fall in non-oil receipts during the period was attributed to the decline in Customs & Excise duties and Companies Income Tax (CIT) collections �Of the total federally-collected revenue during the review quarter, N705.23 billion was transferred to the Federation Account for distribution among the three tiers of government and the 13 per cent derivation fund. The Federal Government received N330.24 billion, while the state and local governments received N167.50 billion and N129.14 billion, respectively. The balance of N78.34 billion went to the 13 per cent derivation fund.
�At N622.76 billion, the Federal Government retained revenue for the second quarter of 2007 were 30.5 and 31.6 per cent higher than the proportionate budget estimate and the receipts in the preceding quarter, respectively. The increase in retained revenue was attributable to the payment of N100.00 billion due to the Federal Government from the FGN Natural Resources Development Account during the month of May 2007.
�At N451.17 billion, total expenditure for the period fell by 7.0 and 22.8 per cent from the levels in the preceding quarter and the proportionate budget estimate, respectively. The decline in total expenditure for the period relative to the preceding quarter and budget estimate was attributable largely to the reductions in personnel costs and the decline in interest payments on domestic debts.
�A breakdown of total expenditure showed that recurrent, capital and transfers accounted for 55.2, 39.2 and 5.6 per cent respectively. The fiscal operations of the Federal Government in the second quarter of 2007 resulted in a surplus of N171.59 billion, in contrast to the proportionate budgeted deficit of N107.37 billion. Relative to the preceding quarter and the corresponding period of 2006, the fiscal operations of the Federal Government resulted in a deficit of =N=12.03 billion and N19.73 billion, respectively,� the report stated.