The Federal Government will, today, be-gin full disbursement of N350 billion funds for the execution of capital projects captured under the 2016 budget. Minister of Budget and National Planning, Senator Udoma Udo Udoma, disclosed this yesterday at the presidential villa while giving a breakdown of the budget. Udoma said “by tomorrow (today) some releases  would be made. We are ready to start releases as far as the budget is concerned.”
The minister said the Ministry of Budget and National Planning would work closely with the Federal Ministry of Finance in ensuring effective cash backing for all capital projects. He explained that the 2016 budget would run concurrently until May next year.
Government, according to him, intends to return to the January to December financial year. A breakdown of the 2016 budget projections shows that the fiscal document envisages a net distributable revenue of N5.72 trillion, comprising of main federation account revenue of N4.303 trillion and N1.416 trillion from the value added tax pool account.
Out of the distributable revenue, net oil receipts amount to N1.48 trillion or 25 per cent, while net non-oil revenue accounts for the balance of N4.22 trillion or 75 per cent. The 36 states of the federation and 774 local governments share of the distributable pool amount to N3.24 trillion, while the Federal Government will receive N2.48 trillion.
The budget breakdown also shows that Federal Government’s budgeted revenue, projected at N3.855 trillion, is largely contributed by the Internally Generated Revenue (IGR) of N1.51 trillion, which is 35 per cent increase over the N2.855 trillion for the 2015 budget. Growth in the Federal Government’s revenue is mainly to be derived from the growth in non-oil resources from Corporate Tax, VAT and dividends from government corporations and independent revenue.
A projection of N1.88 trillion was made on corporate taxes in the 2016 budget as against N1.42 trillion in 2015 and VAT collection of N1.48 trillion in 2016 from N1.28 trillion last year. Provisions for Budget- FG releases N350bn for capital projectsexpenditure of the N6.06 trillion 2016 budget shows a 35 per cent increase over the 2015 budget of N5.067 trillion. Statutory transfer (inclusive of N157 billion capital component) is put at N352.37 billion, debt servicing including sinking fund of N1.48 trillion, recurrent (non-debt) expenditure is put at N2.65 trillion.
Capital expenditure (excluding share of capital in statutory transfers) is put at N1.59 trillion, while the capital expenditure (including share of capital expenditure in statutory transfer) is put at N1.7trillion.
Some other key allocations in the 2016 budget include provision for the Ministry of Power, Works and Housing, N456.93 billion; Transport, N202.34 billion; Defence, N443.07 billion; Interior, N513.65 billion; Education, N403.16 billion; Health, N250.06 billion; Agriculture and Rural Development, N75.80 billion; Solid Minerals, N16.73 billion; Youth and Sports Development, N75.79 billion; Water Resources, N53.30 billion and Special Intervention Programmes of N500 billion.
The budget is predicated on an oil production benchmark of 2.2 million barrels per day at $38 per barrel and an exchange rate of N197 naira to a dollar.
The breakdown shows that other priority projects listed for implementation by government are the dualisation of the Kano- Maiduguri road (sections I-V) for N13 billion; Lagos- Ibadan Expressway (section1) for N40 billion; N1.1 billion for the generation of 700MW from Zungeru Hydro Power Project; N18.3 billion for the completion of Abuja (Idu)- Kaduna 186.5KM single track rail line; N60 billion counterpart funding for Lagos-Kano Standard Guage rail line; N60 billion counterpart funding for Calabar-Lagos Standard Guage rail line.
One of the capital projects captured in the budget is the development of strategic grazing reserves estimated to cost government a total of N940 million under the Ministry of Agriculture. “We intend to take the budget to where it ought to be, the January to December financial year, which is much better for implementation. “So, for the next year’s budget, we intend to get it to the National Assembly so that it is passed by the year end,” he said.
The budget includes six strategic areas cutting across economic diversification, critical infrastructure and reforms in the oil and gas sector. Other areas are ease of doing business, policy environment, national security, governance and social investment.
“The Strategic Implementation Plan forms the basis for the preparation and implementation of the 2016 Budget, as it documents the key short-term priorities of the incumbent administration to place the economy on this upward trajectory as it is repositioned for change, inclusive growth and sustainable development,” Udoma said.
Udoma said government would distribute the capacity through privatisation and concessioning under its priority strategies in power, rail and roads sectors. “It will ensure that tariff includes all costs of transmission, generation and gas at new price and that DISCO cost required operating, maintaining and upgrading distribution network.
“It will ensure delivery of 2,193 kilometres of federal roads across 31 projects scheduled for 2016 (through public works and other interventions) and explore Private Public Partnership options for completing other projects. “The government will undertake the construction of 3,552 Mixed Housing Units as pilot scheme in the 36 states and FCT under the National Housing Programme in a secured and planned environment.”