President Muhammadu Buhari on Friday, said the national debt increased from N39.6tn in December 2021 to N42.8tn in June 2022.
According to him, the budget for the previous year had a deficit of N4.6 trillion, which is 63% of the projected deficit for the fiscal year 2022.
The 2023 appropriation bill was presented by Buhari to the National Assembly in a joint session in Abuja.
Explaining further, he said the rising deficit was due to high debt servicing resulting from rising interest rates.
According to him, the Federal Government disbursed N1.48tn for recurrent expenditures for all its Ministries, Department and Agencies in the past year.
He argued that reducing government spending too drastically will be socially destabilising. Therefore, the regime is focused on increasing economic activity and by extension, revenue.