Business

2016 budget: FG cuts capital vote by 50%

Published

8 years ago

June 10, 2016

There are indications that the Federal government has opted to reduce total budgetary spending on 2016 capital expenditure by half, as it envisages that the budget would not be fully implemented.

The Minister of Finance, Mrs Kemi Adeosun, had given indication in London that the budget may not be fully implemented but came short of indicating which areas will be affected.

But a budget office source said that looking at the current revenue trend, over 50 percent of the capital expenditure budget would not be implemented.

Read also: Buhari names Ben Akabueze, DG Budget Office

With this, about N900 billion out of the total N1.8 trillion budgeted for capital expenditure in 2016 will be done away with.

According to the source, the unimplemented portions would be transferred to 2017 budget.

Adeosun also hinted that government would not want to increase its debt to GDP ratio in 2016, but said the ratio would eventually go up over the next three years to about 20 per cent from current 13 per cent.

This means that the administration of President Muhammadu Buhari would be borrowing annually throughout its first term.

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