2017 Budget: FG Keeps Mum on Capital Releases
There are indications that the federal government may be
having difficulties funding the capital component of the
N7.44 trillion 2017 Budget as none of the ministries,
departments and agencies (MDAs) could confirm to
THISDAY as at Monday, the release of any capital vote to
them, three months after the appropriation bill was
assented to by Vice-President Yemi Osinbajo, who was
then acting president. The budget with a capital vote of
N2.36 trillion, which was passed by the National Assembly
on May 9, 2017, was assented to by Osinbajo on June 12,
2017.
At the public presentation of the budget in Abuja on June
19, 2017, the Minister of Finance, Mrs. Kemi Adeosun, had
assured Nigerians that funds were at the disposal of the
government to immediately release N350 billion for capital
projects.
However, THISDAY investigations have cast some doubt
not only on government’s promise to release the funds as
soon as the budget was signed but also its capacity to fund
the entire capital vote.
About three months after the budget was signed into law,
efforts by THISDAY in the last two months to confirm the
release of the N350 billion and other possible releases had
met a brick wall.
Neither the officials of the Ministry of Finance nor the Office
of the Accountant General of the Federation (OAGF) have
been forthcoming with information.
Some top officials of the Ministry of Finance, who were
contacted to provide information on whether or not the
N350 billion had been released, referred our inquiries to the
Office of the Accountant-General of the Federation and the
Ministry of Budget and National Planning.
Efforts to make an inroad into the OAGF also fell flat as the
Director, Public Affairs in the Office, Mrs. Kene Offie, neither
responded to calls nor a text message.
Although the Ministry of Finance is saddled with the task of
ensuring the release of funds for budget implementation,
nonetheless, THISDAY still made attempts to see if the
Budget and National Planning Ministry could be of any help
in terms of providing information on capital releases/
budget implementation generally.
An official of that ministry, who was contacted, expressed
the obvious, adding that the release of budgeted funds was
the prerogative of the Ministry of Finance.
He advised THISDAY to seek the needed information from
the finance ministry.
Indications are that the federal government may be finding
it difficult not only to fund capital projects but some
recurrent line items, especially overhead.
The Statistician-General of the Federation, Dr. Yemi Kale,
disclosed recently that the delay in the release of the
second quarter Gross Domestic Product (GDP) figures was
due to the paucity of funds.
The delay, he noted, put the statistical agency in some
financial constraints to embark on the mobilisation of the
necessary data for second quarter GDP figures, which came
almost two months late.
To further lend credence to government’s not-too-cosy
financial position to fund the capital budget, THISDAY’s
request for details of the capital release so far to the
Ministry of Power, Works and Housing was repeatedly
evaded by Mr. Hakeem Bello, the Senior Special Assistant
on Communications to the minister, Mr. Babatunde
Fashola.
On several occasions, Bello explained away the delay in
responding to the inquiries.
But there were pointers to the fact that the government was
exploring alternative sources of funding for capital projects,
as Fashola at a meeting with contractors who were
complaining about paucity of funds to execute their
contracts noted: “Sukuk is coming. If it is fully subscribed,
at least, in 25 major roads, we will have some
interventions.”
The N100 billion sovereign Sukuk bonds recently issued by
the government is promising to pay subscribers of Sukuk
risk-free rental income of 16.47 per annum.
Some major capital expenditure allocations in the 2017
Budget are N553.71 billion for Power, Works and Housing;
N241.71 billion for Transportation; N150 billion for Special
Intervention Programmes; N139.29 billion for Defence;
N104.24 billion for Water Resources; N81.73 billion for
Industry, Trade and Investment; N63.76 billion for Interior;
N151.91 billion for Education (including Universal Basic
Education Commission); N55.61 billion for Health; and,
N103.79 billion for Agriculture.
having difficulties funding the capital component of the
N7.44 trillion 2017 Budget as none of the ministries,
departments and agencies (MDAs) could confirm to
THISDAY as at Monday, the release of any capital vote to
them, three months after the appropriation bill was
assented to by Vice-President Yemi Osinbajo, who was
then acting president. The budget with a capital vote of
N2.36 trillion, which was passed by the National Assembly
on May 9, 2017, was assented to by Osinbajo on June 12,
2017.
At the public presentation of the budget in Abuja on June
19, 2017, the Minister of Finance, Mrs. Kemi Adeosun, had
assured Nigerians that funds were at the disposal of the
government to immediately release N350 billion for capital
projects.
However, THISDAY investigations have cast some doubt
not only on government’s promise to release the funds as
soon as the budget was signed but also its capacity to fund
the entire capital vote.
About three months after the budget was signed into law,
efforts by THISDAY in the last two months to confirm the
release of the N350 billion and other possible releases had
met a brick wall.
Neither the officials of the Ministry of Finance nor the Office
of the Accountant General of the Federation (OAGF) have
been forthcoming with information.
Some top officials of the Ministry of Finance, who were
contacted to provide information on whether or not the
N350 billion had been released, referred our inquiries to the
Office of the Accountant-General of the Federation and the
Ministry of Budget and National Planning.
Efforts to make an inroad into the OAGF also fell flat as the
Director, Public Affairs in the Office, Mrs. Kene Offie, neither
responded to calls nor a text message.
Although the Ministry of Finance is saddled with the task of
ensuring the release of funds for budget implementation,
nonetheless, THISDAY still made attempts to see if the
Budget and National Planning Ministry could be of any help
in terms of providing information on capital releases/
budget implementation generally.
An official of that ministry, who was contacted, expressed
the obvious, adding that the release of budgeted funds was
the prerogative of the Ministry of Finance.
He advised THISDAY to seek the needed information from
the finance ministry.
Indications are that the federal government may be finding
it difficult not only to fund capital projects but some
recurrent line items, especially overhead.
The Statistician-General of the Federation, Dr. Yemi Kale,
disclosed recently that the delay in the release of the
second quarter Gross Domestic Product (GDP) figures was
due to the paucity of funds.
The delay, he noted, put the statistical agency in some
financial constraints to embark on the mobilisation of the
necessary data for second quarter GDP figures, which came
almost two months late.
To further lend credence to government’s not-too-cosy
financial position to fund the capital budget, THISDAY’s
request for details of the capital release so far to the
Ministry of Power, Works and Housing was repeatedly
evaded by Mr. Hakeem Bello, the Senior Special Assistant
on Communications to the minister, Mr. Babatunde
Fashola.
On several occasions, Bello explained away the delay in
responding to the inquiries.
But there were pointers to the fact that the government was
exploring alternative sources of funding for capital projects,
as Fashola at a meeting with contractors who were
complaining about paucity of funds to execute their
contracts noted: “Sukuk is coming. If it is fully subscribed,
at least, in 25 major roads, we will have some
interventions.”
The N100 billion sovereign Sukuk bonds recently issued by
the government is promising to pay subscribers of Sukuk
risk-free rental income of 16.47 per annum.
Some major capital expenditure allocations in the 2017
Budget are N553.71 billion for Power, Works and Housing;
N241.71 billion for Transportation; N150 billion for Special
Intervention Programmes; N139.29 billion for Defence;
N104.24 billion for Water Resources; N81.73 billion for
Industry, Trade and Investment; N63.76 billion for Interior;
N151.91 billion for Education (including Universal Basic
Education Commission); N55.61 billion for Health; and,
N103.79 billion for Agriculture.
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