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FG to close 2017 budget with over N1.5tn capital expenditure

FAAC to set new revenue reporting template, disburses N715bn for July

The Federal Government of Nigeria says it will be closing the 2017 fiscal year with spending on capital projects in excess of N1.5 trillion.

Kemi Adeosun, Minister of Finance, who made this disclosure on Sunday in a series of tweets using her official Twitter handle @HMKemiAdeosunm, said the figure was higher than what the government achieved in the 2016 budget.

Adeosun expressed her delight over the achievement, stressing the amount is higher than what was achieved in 2016.

“I’m pleased to note that we’re going to close the 2017 budget with capital spending in excess of N1.5 Trillion, which is higher than what we achieved in the 2016 budget. We’re also looking forward to the passage of the 2018 budget by @nassnigeria (National Assembly),” she tweeted.

The government had released a record high of N1 trillion for capital expenditure from the 2016 budget in March 2017, while expressing high-level of optimism, Adeosun said the government would increase the spending on capital projects in 2017.

She earlier projected that the capital spending would close at N1.3tn mark after it hit N1.2tn in March, 2018, adding that Ministry of Power, Work and Housing, Defense, Agriculture, Transport were the four biggest areas with N301.88bn, N151.2bn, N119.9bn and N127.9bn worth of allocation respectively while other areas combined received N547.6bn.

Adeosun, while noting the need for diversification of the nation’s revenue base also added the current administration had in the last two years, through the Federal Inland Revenue Service (FIRS) in collaboration with Tax Authorities at the State level, expanded the country’s tax base by over 5 million.

Read also: https://www.ripplesnigeria.com/number-nigerians-pay-tax-rises-19-million/

“More than 5 million new taxpayers added to Nigeria’s tax base in the last two years. @firsNigeria an other Tax Authorities (at State level) are doing a great deal of work on expanding the tax base and enforcement of tax payment. We must diversify our revenue base,” the Minister tweeted.

Three days ago, the Minister had said the present administration was determined to drive the mobilisation of more revenues to sustain the nation’s economic growth.

Read also: WHISTLEBLOWING POLICY: Nigerian govt Recovers N14bn, Pays N439m

Speaking on the country’s debt profile, the Minister hinted that the debt management strategy focusing at reducing borrowing costs was working.

She said the government brought the average cost of borrowing down from 18 per cent in the corresponding period last year to 13 per cent presently.

According to her, “This time last year, @AsoRock was borrowing at an average cost of about 18 per cent, today it is 13 per cent. We will continue to work very hard on debt service cost.”

 

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Olakoyenikan Oluwasegun