FG Recorded N977bn Expenditure Shortfall in 2017 — FRC

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  • FG Recorded N977bn Expenditure Shortfall in 2017 — FRC

The Federal Government suffered a shortfall of N977.57bn in appropriated expenditure in 2017, the Fiscal Responsibility Commission said.

The FRC disclosed this in a report on the performance of key components of the 2017 budget, which was obtained by our correspondent in Abuja on Monday.

According to the report, the N977.57bn 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.”

On other major components of the budget, the report said, “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 N1.59tn or 26.19 per cent.

“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 said the responsibility of monitoring the budget provisions, which the FRA Act conferred on the commission, remained challenging as a result of the unwillingness of most Ministries, Departments and Agencies to comply with the provisions of the Act.

About the Author

Samed Olukoya
CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade long experience in the global financial market. Contact Samed on Twitter: @sameolukoya; Email: samed@investorsking.com.

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