FRC report puts FG’s 2017 expenditure shortfall at N977.57bn

A report by the Fiscal Responsibility Commission (FRC) on the key components of the 2017 federal budget has revealed that the Federal Government had an expenditure shortfall of N977.57 billion.

The report also indicated that the N977.57 billion represents the difference between the total expenditure appropriated in the 2017 budget and the actual amount expended by the Federal Government.

The report said: “Total expenditure in the Appropriation Act was N7.44tn compared with the actual amount of N6.46tn expended, thereby leaving an annual deficit of N977.57bn or 13.14 per cent of the projected amount.

“While the total expected revenue was N5.08tn, the projected deficit of N2.36tn was financed largely through borrowing.”

The report further revealed that “The total capital expenditure appropriated for 2017 was N2.17tn, representing 29.22 per cent of the aggregate expenditure, which shows an increase of N587.1bn or 36.98 per cent over the 2016 appropriation of N1.59 trillion or 26.19 per cent.

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“With reference to the 2017 fiscal framework, there was a projected quarterly deficit of N589.19bn. This deficit was expected to be financed through privatisation proceeds of N2.5bn, foreign borrowing of N266.88bn, domestic borrowing of N313.57bn and sale of government properties of N6.25bn.

“Statutory transfers to government agencies received an appropriation of N434.41bn while N1.66tn was allocated for debt servicing, N177.46bn for sinking fund and total recurrent non-debt expenditure stood at N2.99tn.

“However, a total of N434.41bn was spent as statutory transfers in 2017. This represents 100 per cent of the appropriated amount in the budget.

“It is important to note that quarterly releases to beneficiaries under this subhead were made on request, subject to budgetary provisions and availability of funds. This explains the difference in the amounts captured in the quarterly budget implementation reports.”

The FRC however bemoaned the lack of willingness of most Ministries, Departments and Agencies, MDAs to comply with the provisions of the Fiscal Responsibility Act, which placed the monitoring of budget provisions on the commission. This, it said has made it job challenging.

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