BY NSE ANTHONY-UKO
ABUJA, (Sundiata Post) – The Federal Government is to continue with implementation of the 2016 budget, particularly the capital component, until May 2017 despite the presentation of the 2017 estimates, which is expected to be passed earlier than the current year’s.
Speaker of the House of Representatives, Dr Yakubu Dogara revealed this during the presentation of the 2017 Budget estimates to the joint session of the National Assembly, in Abuja by President Muhammadu Buhari on Wednesday.
Dogara lamented that over the years, the budget process has been concluded without unlocking the full potential for the benefit of all citizens due to low implementation of the capital budget, thus resulting in a vicious circle of failed budgets over the years.
According to him, the appropriation Action must be structured in a manner that allows uninterrupted implementation of the budget for 12 months.
He said that the executive arm of government must continue to implement the 2016 budget, especially the capital component till May 2017, adding that due to the late passage and the delay in the procurement process, the 2016 budget cannot be realistically implemented in six months.
Dogara urged the executive arm of government to develop creativity in the execution of the budget.
Meanwhile, highlights of 2017 Budget proposal are as included total estimates of N7.3 trillion; Capital Expenditure of N 2.243 trillion representing 30.7 per cent of the 2017 budget; Recurrent Expenditure of N1.8 trillion and debt Service of N1.6 trillion
President Buhari said the capital expenditure was increased from N1.8trillion in 2016 to N2.24trillion in 2017.
The president also announced N2.98trillionn as recurrent expenditure for the 2017 fiscal year.
He said, having reviewed the trends in the global oil industry, the government had decided to set a benchmark price of $42.5 per barrel and a production estimate of 2.2m barrels per day for 2017 fiscal year.
According to him, the aggregated revenue available to fund the 2017 budget is N4.94trillion, 28 per cent higher than the 2016 budget.
He said that oil was projected to contribute N1.99trillion of the amount and non-oil revenue would be contributing N1.73trillion.
Crude Oil Benchmark was pegged at $42/per barrel with crude oil production estimates of 2.2 million barrels per day and an Exchange Rate of $/N305.
