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HomeTop NewsAbsence Of cabinet Delay Release Of 2019 Capital Expenditure To Ministries

Absence Of cabinet Delay Release Of 2019 Capital Expenditure To Ministries

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More than six months into the 2019 fiscal year and 43 days after President Mohammadu Buhari signed this year’s appropriation act, the government is yet to release any portion of the capital expenditure component of the budget to relevant agencies.

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The President had signed the 8.91 trillion naira 2019 budget into law on May 27, but none of the ministry and agency of government has received any disbursement from the capital vote.The government had proposed to spend 2.09 trillion naira on capital projects in the fiscal year, 4.07 trillion naira on recurrent expenditure and fiscal deficit of 1.92 trillion nairas.
A report by the Debt Management Office (DMO) on Wednesday put the country’s total debt at 24.9 trillion naira at the end of the first quarter of the year.
The report showed that the debt stock rose 2.3 percent within the first three months of the year, an indication that the government had borrowed up to 560 billion naira in the three months to March, this year.
Government sources said funds for capex is yet to be released to finance capital projects as stated in the budget, this has led frustration by contractors carrying out ongoing projects across the country.
Top government officials are blaming factors such as the delay in obtaining procurement certificates for the projects, in the absence of a cabinet to supervise the ministries and agencies and the low approval limit of Permanent Secretaries currently in charge of government business.
The president is yet to constitute his cabinet, more than a month after he was inaugurated for a second term of four years in office.
Although the President of the Senate has hinted that the president could forward the list of his cabinet members to the parliament this week, it was doubtful if the list is ready as at the close of business on Wednesday, a source said.

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