FEDERAL Government said yesterday that it will today (Friday) begin full
disbursement of funds for the execution
of capital projects captured in the 2016
Appreciation Act.
Minister of Budget and National
Planning, Udoma Udo Udoma
disclosed this Thursday at the
presidential villa while giving a
breakdown of the budget.
He said “by tomorrow (today) some
releases would be made. We are ready
to start releases as far as the budget is
concerned”.
Udoma pointed out that the ministry
of budget and national planning
intends to work closely with the
Federal Ministry of Finance in ensuring
effective cash backing for all capital
projects.
The minister explained that the 2016
budget will run concurrently until
May next year, pointing out, during a
question and answer session that the
Government intends to return to the
January to December financial year.
“We intend to take the budget to
where it ought to be, the January to
December financial year which is much
better for implementation.
“So for the next year’s budget
we intend to get it to the National
Assembly so that it is passed by the
year end”, Senator Udoma explained.
In the 2016 budget, the federal
government plans to spend N940
million under the ministry of
agriculture capital project to develop
strategic grazing reserves.
The Appropriation Act includes six
strategic areas cutting across economic
diversification, critical infrastructure
and reforms in the oil and gas sector.
Other areas are ease of doing business,
policy environment, national security,
and governance and social investment.
“The Strategic Implementation Plan
forms the basis for the preparation and
implementation of the 2016 Budget, as it
documents the key short-term priorities
of the incumbent administration to
place the economy on this upward
trajectory as it repositioned for change,
inclusive growth and sustainable
development” Udoma said.
Senator Udoma also explained that
government plans to actively support
the use of public private partnerships
in the development of infrastructure
and encourages ministers to explore
concessioning arrangements for
airports, major roads and other
infrastructure projects.
The government, he said is working
to raise $25billion for the establishment
of an infrastructure fund within three
years.
Some priority projects listed for
implementation by government are
the Dualisation of the Kano-Maiduguri
road (sections I-V) for N13billion;
Lagos-Ibadan Expressway (section1)
for N40billion; N1.1billion for the
generation of 700MW from Zungeru
Hydro Power Project; N18.3 billion
for the completion of Abuja (Idu) –
Kaduna 186.5KM single track rail
line; N60 billion counterpart funding
for Lagos- Kano Standard Guage rail
line; N60 billion counterpart funding
for Calabar-Lagos Standard Guage rail
line.
A breakdown of the 2016 budget
projections shows that the fiscal
document envisages net distributable
revenue of N5.72 trillion comprising
main federation account revenue of
N4.303 trillion and N1.416trillion from
the value added tax pool account.
Out of the distributable revenue, net
oil receipts amount to N1.48 trillion or
25 percent while net non-oil revenue
accounts for the balance of N4.22 trillion
or 75 percent.
The 36 states of the federation
and 774 local governments share
of the distributable pool amount
to N3.24trillion while the federal
government will receive N2.48trillion.
The budget breakdown also shows
that Federal Government’s budgeted
revenue is projected at N3.855trillion
largely contributed by the Internally
Generated Revenue (IGR) of N1.51
trillion, which is 35 percent increase
over the N2.855 trillion for the 2015
budget.
Growth in the FG’s revenue is mainly
to be derived from the growth in nonoil
resources from Corporate Tax;
VAT and dividends from government
corporations and independent revenue.
A projection of N1.88 trillion was
made on corporate taxes in the 2016
budget as against N1.42 trillion in 2015,
and VAT collection of N1.48trillion in
2016 from N1.28 trillion last year.
Provisions for expenditure of the
N6.06 trillion 2016 budget shows a 35
percent increase over the 2015 budget
of N5.067 trillion.
Statutory transfer (inclusive of
N157 billion capital component is
put at N352.37billion, Debt Servicing
including sinking fund of N1.48 trillion,
recurrent (non debt ) expenditure is put
at N2.65trillion.
Capital expenditure (excluding share
of capital in statutory transfers) is
put at N1.59 trillion while the Capital
Expenditure (including share of capital
expenditure in statutory transfer) is put
at N1.7trillion.
Some other key allocations in the
2016 budget include provision for
the Ministry of power, works and
housing, N456.93billion, transpiration,
N202.34billion, defence N443.07billion,
interiors N513.65billion, education
N403.16billion, health, N250.06billion,
agriculture and rural development,
75.80billion, solid minerals
N16.73billion, youth and sports
development, N75.79billion, water
resources, N53.30 billion and
special intervention programmes of
N500billion.
The budget is predicated on an oil
production benchmark of 2.2 million
barrels per day at $38 per barrel and an
exchange rate of N197 naira to a dollar


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