Government to continue execution of 2016 budget till May 2017

The Federal Government is to continue the implementation of the 2016 budget till May 2017, a top Presidency official told The Guardian yesterday.

The source, who preferred anonymity, said whereas the 2016 calendar year ends in December, the Appropriation Act that legalised the 2016 budget stipulates that the implementation will run for one fiscal year, ending in May 2017.

The official, who also revealed that plans were ongoing to secure foreign loans to serve as a buffer for the shortfall in oil revenue, maintained that the Federal Government would continue the implementation of capital and recurrent expenditures spelt out in the 2016 budget as passed into law.

The official stated that the executive arm of government was empowered constitutionally to source additional funds when necessary to beef up government spending in the face of revenue shortfall.

He added that all aspects of the 2016 budget would be executed on or before May 2017.

Meanwhile, the Federal government has said that so far, it has spent a total of N3.577 trillion out of the full year budget of N6, 060 trillion legislated for the 2016 fiscal year. The amount translates to a 79 per cent performance level of the prorated budget for the three quarters up to September 30, 2016.

According to the Media Adviser to the Minister of Budget and National Planning, Akpandem James, a total of N1, 137. 7 trillion has been paid out in domestic and foreign debt service during the period captured.

He said that in addition to the total of N2, 439 trillion so far spent on capital expenditure, the capital releases to date (as at September) is N700 billion inclusive of capital expenditure in statutory transfers, far exceeding the budgets of the past.

“In addition to the total of N2, 439. 9 trillion 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. Additionally, government has done reasonably well in the challenging circumstances with respect to capital expenditures.