{"id":7931,"date":"2016-07-16T10:59:24","date_gmt":"2016-07-16T09:59:24","guid":{"rendered":"http:\/\/nationalwire.com.ng\/?p=7931"},"modified":"2016-07-16T10:59:24","modified_gmt":"2016-07-16T09:59:24","slug":"fg-explains-why-capital-releases-are-delayed","status":"publish","type":"post","link":"https:\/\/nationalwire.com.ng\/sub\/fg-explains-why-capital-releases-are-delayed\/","title":{"rendered":"FG explains why capital releases are delayed"},"content":{"rendered":"

The Federal Government said, yesterday, that procurement procedure and low revenue were responsible for the delay in capital releases to service the 2016 Budget.<\/p>\n

The Minister of Budget and Planning, Senator \u00a0 Udoma Udoma, disclosed this, in Abuja, while briefing the Sen. Danjuma Goje-led \u00a0 Senate Committee on Appropriations, on the\u00a0 2016 budget implementation.<\/p>\n

He lamented the level of performance of projected revenue which stood at a mere 55 per cent in the first quarter of the year.<\/p>\n

The minister also blamed the\u00a0 activities of members of the Niger Delta Avengers\u00a0 that have consistently attacked oil and gas facilities for the dwindling revenue in the country, adding that revenue from the Nigerian Customs Service (NCS) and Federal Inland Revenue Service (FIRS) were equally below projections.<\/p>\n

His words, \u201cThe overall releases are; N1.7trillion was budgeted \u00a0 and as at April, \u00a0 N871 billion was released and that is almost 50 \u00a0 per cent release.\u00a0 For overhead, N218 billion was budgeted and N52 billion was released, amounting to 25 per cent release and this is because of the low performance of revenue generation.\u00a0 For Capital, N1.5\u00a0trillion was budgeted and N235 billion was released, amounting to 15 per cent release.<\/p>\n

\u201cThere is a revenue meeting going on in Kano hence I won\u2019t be able to give adequate revenue breakdown because we are not with the document here. That is why it is the expenditure figure that we will be able to give you. The Kano meeting was called to review revenue and the revenue situation because we are not achieving revenue targets which we set for the revenue generating agencies.<\/p>\n

\u201cThe second reason for the low capital releases is the low revenue. Overall for the first quarter we were running at about 55 per cent in terms of our revenue expectations. The bulk of it is because of the problems in the Niger Delta which affected oil production which prevented us from reaching the 2.2 billion barrels even though the price is going up.\u00a0 Oil production at a point dropped to below one million barrels per day.<\/p>\n

According to the Minister, the releases so far cut across personnel, overhead and capital allocation to the Ministries, Departments and Agencies (MDAs) of government. He noted that it would be difficult to meet the expected target if generated revenues were not enough, said, \u00a0 \u201cWe are not achieving the targets set for revenue generating agencies in the country. If we don\u2019t get the revenue we cannot meet the expenditure target.<\/p>\n

Sen. Udoma, however, expressed optimism that things would improve with better revenue outlook before the end of the year with, especially with the recovery of\u00a0 \u00a0 oil prices and increased revenue from NCS and FIRS. He said, \u201cWe are hoping that as the year goes along, we will recover some revenue from oil as production increases. We also expect revenue coming from FIRS because people don\u2019t pay taxes in the first quarter. FIRS had already reached 60 percent of the projected revenue as of June this year and we expect it to keep on rising.<\/p>

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Advertisement<\/div>\r\n\t\t\t\t\t\t\t<\/a>\r\n \r\n\t\t\t\t\t\t\t<\/div>\n

Senator Udoma who called on the need for improved budgetary allocation for the\u00a0 Integrated Payroll and Personnel Information System (IPPIS) to extend the programme to all agencies of government, said that\u00a0 the extension would help to check ghost workers in the country.<\/p>\n

On\u00a0 Treasury Single Account (TSA), the minister said that the expectations of the device had not been realized, stressing that there was the need for agencies to collaborate to make it effective.<\/p>\n

He added that the 2017 budget\u00a0 would be transmitted to the National Assembly in October.<\/p>\n

Also in his remarks, the Director General, Budget Office, Ben Akabueze, said, \u201cThe inability of the country to generate the expected revenue target has to do partly due to difficulties in accessing foreign exchange that affected the import volume and therefore affected customs revenue because the importers and manufacturers cannot import, but now the situation had changed there was improvement in importation since the access to forex had also improved.<\/p>\n

“Statutory transfer \u00a0 of N175, 681m had been met in full as priority projects of the MDAs were considered.\u00a0 \u201c<\/p>\n

\u00a0In his remarks, Chairman, Senate Committee of Appropriations, Senator Danjuma Goje who noted that the budget performance as at first quarter of the year was impressive despite dwindling revenue, said, \u201c\u00a0 You have done well, the Personnel is okay the\u00a0 \u00a0 Federal Government\u00a0 is on course in paying salaries unlike states.<\/p>\n

\u00a0\u201cThe only problem is capital release, which is understandable. The important thing is that we needed to let Nigerians know what the government is doing. We will call on the Finance Minister when she comes back from Kano. Senator Goje commended the minister for his comment on the importance of constituency projects to Nigerians, and said, \u201cWe had the concern that for the Secretary of the Government of the Federation, Lawal Babachir,\u00a0 \u00a0 to single out constituency\u00a0 \u00a0 projects for non-implementation because of funding\u00a0 \u00a0 gave us concern.\u00a0 \u201cWe feel there is more to it.\u00a0\u00a0 We are uncomfortable and you\u00a0 \u00a0 know the importance attached to constituency projects.\u201d<\/p>\n

\n<\/p>","protected":false},"excerpt":{"rendered":"

The Federal Government said, yesterday, that procurement procedure and low revenue were responsible for the delay in capital releases to service the 2016 Budget. The Minister of Budget and Planning, Senator \u00a0 Udoma Udoma, disclosed this, in Abuja, while briefing the Sen. Danjuma Goje-led \u00a0 Senate Committee on Appropriations, on the\u00a0 2016 budget implementation. He …<\/p>\n","protected":false},"author":11,"featured_media":7880,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[23],"tags":[602,600,608,601,605,301,607,232,606,54,603,604],"coauthors":[2392,2393],"class_list":["post-7931","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-business","tag-ben-akabueze","tag-danjuma-goje","tag-firs","tag-lawal-babachir","tag-mdas","tag-national-assembly","tag-ncs","tag-niger-delta","tag-oil-production","tag-senate","tag-tsa","tag-udo-udoma"],"yoast_head":"\nFG explains why capital releases are delayed - National Wire<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/nationalwire.com.ng\/sub\/fg-explains-why-capital-releases-are-delayed\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"FG explains why capital releases are delayed - National Wire\" \/>\n<meta property=\"og:description\" content=\"The Federal Government said, yesterday, that procurement procedure and low revenue were responsible for the delay in capital releases to service the 2016 Budget. 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