FG Says It Has Spent N3.6trn Out Of N6trn Of 2016 Budget

Nigeria has so far spent N3.577 trillion out of the full
year’s budget of N6,060 trillion for the 2016 fiscal year, according to the
News Agency of Nigeria (NAN).

This translates to a 79% performance of the prorated budget
for the three quarters up to September 30, 2016.

In addition to the total of N2,439.9trn so far released for
Capital, non-debt recurrent and service-wide vote expenditures, a total of
N1,137.7 trillion has also been paid out in domestic and foreign debt service
expenditures.

This includes N44 billion transferred to the sinking fund to
retire maturing obligations on bonds issued to contractors.

To date, budgeted personnel cost and debt service
obligations have been fully met on schedule.

The Minister for Budget and National Planning, Mr. Udoma Udo
Udoma, said additionally, that government has done reasonably well in the
challenging circumstances with respect to capital expenditures.

It is noteworthy that the total amount of N753.6 billion
already released for capital expenditure in 2016 is the highest in the nation’s
recent history, even in the era of high oil prices.

Indeed, the capital releases to date exceed the aggregate
capital expenditure budget for 2015 of N700 billion, inclusive of capital
expenditure in statutory transfers.

At an interactive session with members of the Senate
Committee on Appropriation in Abuja, he said that in spite of the shortfall in
revenue expectations, government was committed to its debt obligations and has
also made efforts in funding the critical sectors to enable government function
smoothly, while seeking lasting solutions to 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, a development which seriously affected the
budgeted production levels for the fiscal year.

Government, he said, adopted a targeted approach with
respect to capital expenditure to ensure that releases are consistently made to
those sectors whose activities have the capacity of driving economic growth and
fostering job creation.

Particular attention was focused to infrastructure,
agriculture and other areas with high job creation potentials. The minister
pointed out that all the releases have been cash-backed. (NAN)