• Wednesday, July 24, 2024
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Budget release fall short by 75%, as FG disbursed N1.23 trn for capital projects

Budget release fall short by 75%, as FG disbursed N1.23 trn for capital projects

Total amount disbursed by the Federal Government for the implementation of capital projects stood at N1.23 trillion, as of September 30, 2023. Representing a 75 percent decline from N5 trillion allocation in the 2023 budget.

This is contained in the 2023 third quarter Budget Implementation Report released by the Budget Office on Sunday. According to the report, the execution of the 2023 Budget in the third quarter was very challenging mainly due to significant revenue mobilisation challenges.

The report indicated that the third quarter of 2023 was characterized by weakening global economy as the macroeconomic environment was adversely affected by the effects of Russia Ukraine war and tightening financial conditions.

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These it stated resulted in the downturn of most economic activities and volatility in crude oil demand and price in the international market. “On the domestic scene, the macroeconomic environment has improved due to the different measures adopted by the government to support economic growth in Nigeria.

“Of the prorated budgeted expenditure of N12.51 trillion, N11.72 trillion was spent reflecting a decrease of 6.32%. As at 30thSeptember, 2023 the Government had released and cash backed a total of N1.23 trillion for capital spending by Ministries, Departments and Agencies and has continued to meet its non discretional expenditures,” it stated.

The report showed that the release of funds to MDAs for capital expenditure as at the third quarter of 2023 was done in tranches based on availability of resources and government priorities.

A total sum of N351.44 billion was released as first tranche, N331.92 billion was released as second tranche, and N208.08 billion was released as third tranche. Also, a total of N75.35 billion was released as AIEs MDAs Budget and N261.11 billion as AIEs Service Wide.

It also indicated that a total of N237.08 billion was released as Statutory Transfers in the third quarter of 2023 which was N4.80 billion (1.98 percent) below the quarterly projection of 241.87 billion.

Of the total disbursement made in the period, the ministries of Defence received N189.39 billion out of which N180.69 was utilised. This was followed by the Ministry of Works and Housing with a total cash-backed allocation of N178.62 billion of which N118.65 billion was utilised in the period.

The Ministry of Agriculture, Science Innovation and Technology, Transport and Humanitarian Affairs and Disaster Management received N128.24 billion, N44.08 billion, N56.5 billion and N53.4 billion of which N109.89 billion, N12.7 billion, N43.39 billion, and N37 billion were respectively spent in the period.

Also, the Office of Secretary General of Federation disbursed N14.04 billion out of its N17.37 billion allocation. Police Affairs Ministry spent N27.42 billion out of the N29.79 billion released, Labour and Productivity disbursed N6.06 billion out of N8.87billion and the Ministry of Interior disbursed N15.66 billon out of its allocation of N16.81billion.

On the revenue side, the report showed that the of total sum of N11.04 trillion (based on the amended Budget Framework) projected to fund the Federal Budget in 2023, indicating a quarterly share of N2.76 trillion.

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According to the report, the total retained revenue of the Federal Government stood at N7.108 trillion in the first three quarters of the year 2023. This represents an increase of N1.186 trillion (55.04 percent) from the 2023 three quarter prorate budget estimate.

Quarterly, a total of N3.343 trillion was received in the third quarter of 2023, this represents a N582.19 billion (21.08 percent) increase compared to target and N839.35 billion (33.52 percent) above the N2.50 trillion generated in the second quarter of 2023.

The report showed that the sum of $791.87 billion was received from oil sources in the third quarter of 2023, higher than the quarterly estimate of N557.41 billion by $234.46 billion (42.06 percent).

“FGN’s share of Solid Minerals revenue stood at N2.09 billion, indicating an increase of 81.18 billion (129.87 percent).”

A breakdown of the non-oil revenue indicates that FGN’s share of Company Income Tax of N744.07 billion, VAT of N123.87 billion, Electronics Money Transfer (Stamp Duties) of N5.50 billion, Signature Bonus of 821.71 billion and Education Tax (TETFUND) of N491.99 billion were above their corresponding quarterly budget estimates of N233.32 billion, N95.77 billion, N4.77 billion, N14.26 billion, N10.76 billion and N62.07 billion.

Also, FGN’s share of Customs of N235.46 billion, FGN’s Share of Federation Levies of N33.03 billion and Independent Revenue of N313.47 billion were, on the other hand, below their corresponding quarterly budget estimates of N237.40 billion, N41.80 billion and N792.27 billion.