Osinbajo transmits N222.2bn FCT for NASS approval

Acting President Yemi Osinbajo on Wednesday transmitted the N222,360,551,512 budget proposal for Federal Capital Territory (FCT) for the approval of the House of Representatives.

The request was contained in a 3-page letter dated 20th July, 2017 was read by Speaker Yakubu Dogara in line with Section 121 of the Constitution (as amended).

Meanwhile, the House failed to enlist the N136 billion virement request of the Acting President on the Order Paper for consideration.

Osinbajo who noted that FCT Administration runs two budgets namely, National and Statutory budgets, solicited for expedite consideration and passage of the budget in the bid to enhance the implementation of critical projects across the nation’s capital city.

“The FCT component of the national budget is funded directly by the Federal Government for the provision of district infrastructural development, water supply, sewage treatment and infrastructural development of the satellite towns of the Federal Capital Territory (FCT) the statutory budget on the other hand, is funded from the statutory allocation, internally generated revenue (IGR) and other sources of funds accruable to the Federal Capital Territory (FCT)

“It should be recalled that the sum of N30,397,122,872 was appropriated for FCTA in 2017 approved federal budget. The statutory budget is presented to the national assembly after the passage of the Federal budget in order to enable the FCTA capture essential capital projects that are often removed from the federa; budget.

“The FCTA has prepared the 2017 FCT statutory budget of the sum of N222,360,551,512 based on the 2017-2019 Medium Term Expenditure Framework (MTEF) and key assumptions of the Federal Government for 2017 budget.

“The breakdown of the budget is as follows: Personnel cost – N52,574,479,667 which represents 23.64 percent; overhead cost – N41,294,590,480 representing18 percent while Capital Expenditure is N128,491,481,366.00 representing 67 percent.

“In line with the federal government’s emphasis on capital projects, the FCT budget ratio for capital and recurrent expenditure is 57.79 percent and 42.21 percent respectively considering the need to complete ongoing projects, 93 percent of the capital expenditure proposal is dedicated for such projects, while seven percent is for new projects mainly for the provision of access roads and social amenities.

“The estimated revenue for the FCT 2017 budget proposal is to accrue from the following main sources: total revenue allocation and FCT share of one percent out of the Federal Government share of account allocation committee inclusive of VAT and internally generated revenue of which N139,988,517,303 is accrued on major revenue from agencies of the FCT.

 

KEHINDE AKINTOLA, Abuja