Fg Spends N3.6trn So Far As 2016 Budget Records 79% Performance

SAN FRANCISCO, October 28, (THEWILL) – The Federal Government says it has so far spent N3.577trn out of the full year's budget of N6,060trn for the 2016 fiscal year which was signed into law in May, translating to a 79 per cent performance of the prorated budget for the three quarters up to September 30, 2016.

This was contained in a statement released on Friday night by Akpandem James, the Media Adviser to the Minister of Budget and National Planning, Senator Udoma Udo Udoma.

According to the statement, in addition to the total of N2,439.9 trn so far released for capital, Non-debt Recurrent and Service-wide vote expenditure, a total of N1,137.7 trn had also been paid out in domestic and foreign debt service expenditure.

He stated that this included N44 bn transferred to the Sinking Fund to retire maturing obligations on bonds issued to contractors.

The statement reads in part, “To date, budgeted personnel cost and debt service obligations have been fully met on schedule.

“Additionally, government has done reasonably well in the challenging circumstances with respect to capital expenditures. It is noteworthy that the total amount of N753.6bn 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 N700bn, inclusive of capital expenditure in Statutory Transfers.”

Udoma had, at an interactive session with members of the Senate Committee on Appropriation in Abuja on Thursday, said that despite the shortfall in revenue expectations, government was committed to its debt obligations and had 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, he said, seriously affected the budgeted production levels for the fiscal year.

The minister explained that government 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.

He pointed out that all the releases had been cash-backed.