Tuesday, 3 January 2017

FG extends 2016 budget implementation to March 2017

The Federal Government has extended the execution of the
N 1 . 58 tn capital component of the 2016 budget to the end
of March 2017 .

The development was confirmed by the Accountant -
General of the Federation , Alhaji Ahmed Idris , via a
circular with reference number OAGF / CAD/ 026/ V . 111/ 108.

The circular, which was obtained by our correspondent on
Friday in Abuja , was addressed to top government officials
such as the Chief of Staff to the President , Secretary to the
Government of the Federation , ministers, National Security
Adviser , Governor of the Central Bank of Nigeria and all
service chiefs.

Others are the Chairman of the Federal Inland Revenue
Service , all permanent secretaries ( federal) , Clerk of the
National Assembly , Auditor General of the Federation , all
vice chancellors of federal universities , all directors of
finance and internal audit and all directors -general .

The circular , titled “ Guidelines for financial activities for
end of year 2016” , stated that while the implementation of
the recurrent budget was expected to end on December 31 ,
2016 , the capital component would be allowed to go on
until March ending .

Idris said the need to issue the circular became imperative
in order to promote probity , transparency and good
governance .

The circular read in part, “ It has become imperative to
provide guidelines to all Ministries , Departments and
Agencies and other arms of government on financial
activities for the fiscal year ending December 31 , 2016 .

“ The objective of the guidelines is to promote probity ,
transparency , accountability and good governance in line
with the policy of trust of the present administration .

“ All ‘unspent ’ balances in the recurrent expenditure cash
books at the end of 2016 financial year will be closed.

“ The Government Integrated Financial Management
Information System platform will be closed by midnight of
December 31 , 2016 and the MDA balances will be mopped
into the Consolidated Revenue / Treasury Single Account
accordingly .

“ The unexpended recurrent votes of the MDAs on the TSA-
sub accounts under the CBN/ Remita gateway for the 2016
financial year shall similarly lapse at midnight of
December 31 , 2016. ”

It added , “ Capital allocation and statutory transfer for the
financial year ended December 31 , 2016 will not be closed
but extended to March 31 , 2017 .

“ Accordingly , all MDAs will have access to their capital
funds and statutory transfers up until March 31 , 2017 as
may be applied by the National Assembly . ”

The circular, however , stipulated that the MDAs would be
responsible for transfering the relevant legal or financial
commitments into the New Year.

The transfer commitment , it added , would have impact on
the 2017 budget including the capital budget transferred
from the 2016 fiscal period .

It however , noted that such transactions would be
separately disclosed in the consolidated financial
statements of the Federal Government .

The N 6 . 06 tn 2016 budget , which was signed into law by
President Muhammadu Buhari on May 5 had a recurrent
expenditure of N 2 . 65 tn ; capital expenditure of N 1. 58 tn,
with debt service of N 1 . 47 tn and fiscal deficit of N 2 . 2 tn.

So far , about N 753. 6 bn has been released by the Ministry
of Finance for capital projects with the Ministry of Power
receiving the highest amount of capital releases of
N 209. 24 bn .

The Special Adviser on Media to the Finance Minister , Mr.
Festus Akanbi , said in a statement that the Ministry of
Defence had N 69 . 5 bn and the Ministry of Transportation
followed with N 30 . 5bn .

Others are agriculture , N 29 . 5 bn; water resources ,
N 25 . 2 bn; interior , N 21 . 2bn ; health , N 18 . 4bn ; education,
N 16 . 7 bn; Niger Delta , N 8. 1 bn; science and technology ,
N 6 . 6bn ; mines and steel, N 3 . 3 bn; and petroleum
resources , N 2. 4bn .

The statement from the ministry also stated that the sum
of N 312. 5 bn was released to what it described as “ others ” .

The Minister of Budget and National Planning , Senator
Udo Udoma, said a total of N 753. 6 bn already released for
capital expenditure in 2016 was the highest in the nation ’s
recent history, even in the era of high oil prices.

At an interactive session with members of the Senate
Committee on Appropriation in Abuja , Udoma had said
that in spite of the shortfall in revenue expectation , the
government was committed to its debt obligations and had
made efforts to fund the critical sectors to enable the
government to function smoothly while seeking lasting
solutions to the revenue shortfalls .

He explained that although the 2016 budget was well
conceived , with reasonably conservative benchmarks, it
recorded unanticipated revenue shortfalls along the line
due to militants ’ activities in the oil - producing Niger Delta
region .

This development, he added , adversely affected the


Ifeanyi Onuba

No comments:

Post a Comment