Economy

2016 Budget: Capital Releases to MDAs Hit N1tn

  • 2016 Budget: Capital Releases to MDAs Hit N1tn

The Federal Government has said that it has so for released N1tn to its Ministries, Department and Agencies for the implementation of the capital component of the 2016 budget.

The Minister of Finance, Mrs. Kemi Adeosun, who disclosed the figure during a meeting with members of the House of Representatives’ Tactical Committee on Recession in her office in Abuja, stated that the amount was the highest release to be made in the history of the country.

A statement from the Director of Information in the Ministry of Finance, Mr. Salisu Dambatta, on Sunday, quoted Adeosun to have said that the release of the funds would enable the government to achieve its objective of creating jobs and stimulating economic activities.

The minister said the amount was released for various projects, including the commencement of the construction of a dual standard railway line that would link Lagos and Kano, rehabilitation of roads, expansion of irrigation facilities to boost agriculture and the upgrading of aviation infrastructure throughout the country.

Adeosun stated, “So far, N1tn has been released on capital and this is the highest so far in the history of this country. With the current stability in oil price and the return of normalcy in the Niger Delta, I am sure we will do more this year.

“We are determined to transform the economy and this is why we are focused on capital expenditure. If we have our rail, road and power, then we will be able to generate jobs and prosperity.”

She said that the components of the releases included aggregate sum of N870.05bn to the MDAs as of the end of February 2017, and additional release of N65.39bn.

Others are authority to incur expenditure in February 2017 in the sum of N11.17bn and an additional AIE worth N45.8bn as of March 13, 2017.

The statement added, “Adeosun noted that the overall capital releases totalling N992,433,595,071.42 have made impact on the Nigerian economy by creating jobs, stimulating economic activities in communities, and upgrading infrastructure, thereby improving the well-being of Nigerians.”

The minister pointed out that contractors returning to project sites around the country had employed workers, contributed to economic growth and improved the well-being of Nigerians in line with the strategic objectives of the administration of President Muhammadu Buhari.

The N6.06tn 2016 budget had a capital vote of N1.58tn, which was about 26 per cent of the total budget size.

The Minister of Budget and National Planning, Senator Udo Udoma, had while presenting highlights of the budget, explained that the government would be investing massively in infrastructure, adding that huge funds had been made available for over 40 road and bridge projects spread across the federation.

Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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