The federal government on Monday announced the imminent release of the first budget allocation of N350bn to its Ministries, Departments and Agencies (MDAs).
The disclosure was made by the Minister of Finance, Kemi Adeosun, in Abuja during the public presentation of the 2017 budget.
Other ministers present at the budget presentation were the Minister of Budget and National Planning, Udo Udoma; Minister of State for Budget, Zainab Ahmed; Minister of Health, Prof. Isaac Adewole; and Minister of Foreign Affairs, Geoffrey Onyema.
Adeosun said the monies would be released to the MDAs after the Cash Management Committee (CMC) has met and agreed on the MDAs that would receive the first tranche of allocations.
“We are ready to make releases as soon as the budget is loaded. We have a cash plan meeting and we will release the first tranche of N350bn for capital projects,” she stated.
Udoma, in his presentation at the event, said the 2017 budget would run for till June 2018, a whole year after it was assented to by the executive.
He said the “2017 Budget envisages a total FGN revenue of N5.08 trillion, exceeding executive proposal by 2.9 per cent and 2016 projection by 31.9 per cent. The projected revenue receipt from oil is N2.122 trillion and non-oil is N2.96 trillion.”
He, however, said that both the executive and the legislature were working on a template that would enable the country to run a fiscal calendar that runs from January to December. commence a predictable budget year that would run between January and December of every year.
If this occurs in before June 2018, the current budget would cease to be in effect.commence a predictable budget year that would run between January and December of every year.
Explaining, he said “the period of the 2016 budget was up till May and the period of the 2017 budget is again by the provision of the bill that was sent to us, which is now an Act of Parliament, continues again, this time, till June.
“However, whenever a new Appropriations Act comes into law, it overtakes the previous Appropriations Act. This means that assuming we were as we intend to achieve this year, we pass the 2018 budget into law; when it is signed into law, then the other one ceases to exist.
“So our aim is by January 2018, we want to get back to the January to December budget year. That means some of the projects in the 2017 budget will have to be carried over.”
Budget adjustments
The budget signed was assented to by Acting President Yemi Osinbajo on the understanding the National Assembly would adjust the budget after the submission of virement applications for projects the lawmakers tinkered with.
He said: “We have agreed with the National Assembly that virement application for them to restore those projects be forwarded to the legislature. Some of these projects include the railway, health and FCT projects.
“Until that is done, the budget and the appropriation must reflect exactly what is passed at the National Assembly and this is what the law is, What was passed at the National Assembly is what was signed into law.”
The minister said the capital allocation of N2.36tn, which represents 31.7 per cent of the total budget, was directed at projects that were aligned with the core execution priorities of the Economic Recovery and Growth Plan.
The 2017 budget christened, ‘Budget of Recovery and Growth’, was presented to the National Assembly on December 14, 2016, and passed by the lawmakers on May 11, 2017.
It was signed into law by the Acting President Yemi Osinbajo on June 12, 2017 and had a total expenditure outlay of N7.44tn, out of which N2.99tn was for non-debt recurrent spending; N2.36tn for capital expenditure; while debt servicing is to gulp N1.66tn.
