Despite assurances by the Federal Government to reduce domestic borrowing, there are indications that it will raise N633.85bn from the bond market in 2013.
The Medium Term Expenditure Framework 2012 – 2014 obtained by one of our correspondents in Abuja on Monday showed that out of a proposed expenditure of N4.83tn in 2013, the Federal Government would resort to the domestic debt market to borrow N633.85bn.
Coordinating Minister of the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, had at a forum raised the alarm over the nation’s domestic debt, which stood at $38.37bn (or N5.97tn) as at March 31.
She also disclosed that the Federal Government would establish a sinking fund aimed at reducing the volume of the domestic debt.
In an apparent contradiction of this intention, government, in the MTEF prepared by the Budget Office of the Federation, said it would run a deficit of N833.85bn in 2013 and 76.01 per cent of this would be funded through borrowing from the domestic debt market.
The proposed expenditure in 2013 would reflect an increase of 275 per cent from the 2005 wage bill.