The Minister of Finance, Mrs Kemi Adeosun has said that the government will soon release N350 billion, being the first tranche for capital votes implementation of the 2017 budget.
Speaking yesterday at the public presentation of 2017 Appropriation Act, Adeosun said the Government had enough cash available to commence the execution of key projects and initiatives scheduled for the 2017 fiscal year.
“We are ready, we are having a cash-plan meeting very soon and after that, N350 billion will be released as first tranche of capital releases for the 2017 budget,’’ she said.
Speaking at the event, the Minister of Budget and National Planning, Senator Udoma Udo Udoma, said the federal government is “making strenuous efforts” to find the resources required to fund the N7.44 trillion budget.
“We are challenging our revenue generating agencies, particularly the FIRS and Customs, to improve their efficiencies and broaden their reach so as to achieve the targets set for them in the 2017 Budget,” the Minister said.
Udoma said the federal government would strive to maximise the revenues generated from the oil and gas sector as it is clear that the foreign exchange generated from the sector is critical for the plans to diversify to the non-oil sectors.
“While we are introducing creative measures to improve on the efficiencies in that sector to increase Government’s take, we are also engaging more extensively with the communities and people of the Niger Delta to minimise disruptions to oil production,” the Minister said.
The 2017 Budget recently signed by the Acting President, Yemi Osinbajo, envisages total federal government revenue of N5.08 trillion with N2.122 trillion as the projected revenue receipt from oil and N2.96trillion from non-oil.
The overall projected budget fiscal deficit is – N2.36 trillion, which is about 2.18 per cent of GDP.
Udoma said the budget deficit would be financed mainly by borrowings of which N1.07 trillion would be sourced externally, while N1.25 trillion would be sourced domestically.
The Minister said the N2.36 trillion capital allocation are aligned with the core execution priorities of the economic recovery and growth plant of this administration
“Allocations have been targeted at critical economic sectors that have quick transformative potentials such as infrastructure, agriculture, manufacturing, solid minerals, services, and social development,” he said.
The Minister enumerated some major capital expenditure allocations as N553.71 billion for Power, Works and Housing; N241.71 billion for Transportation; N150 billion for Special Intervention Programmes; N139.29 billion for Defence; N104.24 billion for Water Resources; N81.73 billion for Industry, Trade and Investment; N63.76 billion for Interior; N151.91 billion for Education (including Universal Basic Education Commission); N55.61 billion for Health; and, N103.79 billion for Agriculture.
Some major initiatives in the 2017 Budget include: N100 billion provisioned for a new Social Housing Programme; N46 billion for Special Economic Zone Projects to be set up in each of the geo-political zones to drive manufacturing / exports; N16 billion voted for the revival of the Export Expansion Grant (EEG) in the form of tax credits; N15 billion to recapitalize Bank of Industry (BOI) and Bank of Agriculture (BOA) to strength their capacities to support Micro, Small and Medium Scale Enterprises (MSMEs). (Dailytrust)
