The Minister of Finance, Kemi Adeosun says the Federal Government is set to release N350bn for capital projects contained in the 2017 budget.
The Minister who made the disclosure at an event tagged "2017 Budget Breakdown" held in Abuja on Monday stated that the Cash Management Committee (CMC) had perfected arrangements to meet and consider the list submitted by the various Ministries, Department and Agencies (MDAs) in order to release the first tranche of funds for the capital projects.
While presenting a breakdown of the budget, the Minister of Budget and National Planning, Sen. Udo Udoma stated that the “2017 Budget envisages a total FGN revenue of N5.08 trillion, exceeding executive proposal by 2.9 per cent and 2016 projection by 31.9 per cent. The projected revenue receipt from oil is N2.122 trillion and non-oil is N2.96 trillion.”
The figure according to him represents 41.7% contribution from oil revenue compared to 19% in 2016. He further disclosed that 11% of the projected revenue for the implementation of the budget would be drawn from recovered loot.
According to him, Company Income Tax (CIT) will contribute 15.9 per cent, Value Added Tax (VAT), 4.8 per cent, Independent Revenue, 15.9 per cent and others, 5.2 per cent. The projected budget deficit which stood at N2.36 trillion, he said, remained relatively low at 2.18 per cent of the Gross Domestic Product (GDP).
This is within the 3 per cent threshold stipulated in the Fiscal Responsibility Act (FRA). The budget is to be financed mainly by borrowings which have been projected at N2.32 trillion. Of this amount, N1.07 trillion is intended to be sourced externally, while N1.25 trillion will be sourced domestically.
About N35 billion, the minister said, was expected as revenue from the sale of government property and privatisation of state-owned enterprises.
Some of the capital projects listed by the Minister include the Lagos-Kano, Calabar-Lagos rail project, dualization of East-West road, rural electrification in federal universities, the construction of 3,050MW Kashimbilla hydropower project worth N10bn and Lagos-Sagamu road among others.
Commenting on the lifespan of the budget, the Minister said it will be operational till June 2018. “Whenever a new Appropriation Bill comes into law, it overtakes any previous appropriation law, which means that the 2018 Budget will overtake the other one which seizes to be valid.”
He however hinted that since the current administration was working assiduously to return the nation to January to December Fiscal year, the lifespan of the budget could be cut short in 2018.
