Bud­get: FG records rev­enue deficit of N1.06 tril­lion

Daily Trust - - FRONT PAGE - By Fran­cis Arinze Iloani

The ex­pected rev­enue of the fed­eral govern­ment to fi­nance the 2016 bud­get fell short by N1.064 tril­lion as at June 2016.

This was made known in the 2017 to 2019 Medium-Term Ex­pen­di­ture Frame­work and Fis­cal Strat­egy pre­sented to the pub­lic at a Stake­hold­ers Con­sul­ta­tive Fo­rum held in Abuja, yes­ter­day.

The Pres­i­dent, Muham­madu Buhari, on May 6, 2016, signed into law the bud­get of N6.060trn for the year with ap­proved bor­row­ing of N1.819trn.

The Frame­work pre­sented by the Min­is­ter of Bud­get and Na­tional Plan­ning, Se­na­tor Udoma Udo Udoma, re­vealed that the fed­eral govern­ment aug­mented the 55.2 per­cent short­fall in rev­enue as at June by do­mes­tic bor­row­ing amount­ing to N600bn.

The amount bor­rowed to fi­nance the bud­get, as at June, rep­re­sented about 33 per­cent of the ap­proved bor­row­ing of N1.819trn meant to fi­nance the to­tal deficit of the bud­get.

A break­down of the rev­enue short­falls be­tween Fe­bru­ary and June showed that the fed­eral govern­ment’s net share of the fed­er­a­tion ac­count al­lo­ca­tion dropped by N397.280bn against what was pro­jected in the bud­get while the fed­eral govern­ment’s gen­er­ated in­ter­nal rev­enue also dropped by N646.320bn from what was bud­geted.

On the im­ple­men­ta­tion of the bud­get as at June, the min­is­ter dis­closed that a to­tal of N2.123trn has been dis­bursed with re­cur­rent ex­pen­di­ture “largely cov­ered.”

He dis­closed that N253bn has been re­leased to Min­istries, De­part­ments and Agen­cies (MDAs) to in­vest in crit­i­cal in­fra­struc­ture projects as at July 18.

“Govern­ment’s fo­cus is to en­sure qual­ity of ex­pen­di­ture,” he said. “Cap­i­tal re­leases are based on pri­or­i­ties, MDAs’ per­for­mance as well as val­uead­di­tion to the im­me­di­ate needs of the econ­omy.”

The MTEF an­a­lysed by the Daily Trust showed that the fed­eral govern­ment had con­sid­ered a con­ser­va­tive oil price bench­mark of $42.5 per bar­rel for 2017, $45 per bar­rel in 2018 and $50 per bar­rel in 2019.

The Frame­work pro­jected oil pro­duc­tion at 2.2mbpd in 2017, 2.3mbpd in 2018 and 2.4mbpd in 2019 with the ex­change rate sta­bil­is­ing at N290 per dol­lar for the pe­riod.

The Frame­work fore­cast a pos­i­tive Gross Do­mes­tic Prod­uct (GDP) growth of 0.35 per­cent for 2016 which was ex­pected to rise to 4.04 per­cent in 2019, av­er­ag­ing 3.77 per­cent dur­ing the MTEF pe­riod.

The min­is­ter said the 2017 bud­get will be sub­mit­ted to NASS by Oc­to­ber this year.

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