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FG begins implementation of budget three months into 2013

By on March 15, 2013
Finance Minister, Okonjo-Iweala

Finance Minister, Okonjo-Iweala

The Federal Government has kick-started the implementation of the 2013 budget, as it has released about N400 billion first quarter capital vote.

In a statement by the Special Adviser to the Coordinating Minister for the Economy and Minister of Finance, Paul Nwabuikwu, the N400 billion capital was released “to give fresh impetus to the execution of projects captured in 2013 Budget.”

He said: “Of this amount, N120 billion had been front-loaded to cater for two important initiatives: N75 billion for retiring bonds which have all come due. This is in line with the new debt management strategy that focuses on reducing the stock and flow of debt in a proactive manner, and N45 billion for the payment of Power Holding Company of Nigeria’s (PHCN) workers.”

The Accountant-General of the Federation (AGF), Jonah Otunla, who spoke at the end of the monthly Federation Account Allocation Committee (FAAC) meeting in Abuja, yesterday, said that the implementation of the 2013 budget was triggered after the FAAC meeting where the three tiers of government collected their cheques from the Federation Account.

Last week, the Minister of Finance, Dr. Ngozi Okonjo-Iweala, had hinted that N886.402 billion will be shared among the three tiers of government.

This amount comprises N450.263 billion statutory disbursements to the federal, state and local governments; N62.707 billion as Value Added Tax (VAT); N173.505 billion augmentation for the month; N35.549 billion from SURE-P; N7.617 billion refund by the Nigeria National Petroleum Corporation,NNPC and N156.761 billion arrears of January, 2013 augmentation (December, last year account).

From the statutory allocations, the Federal Government received N209.856 billion or 52.68 per cent of the net sum. States on their part, got a cheque of N106.442 billion or 26.72 per cent, while the 774 local governments received N82.062 billion or 20.60 per cent on the net statutory allocation.

However, the House of Representatives said it had uncovered a plot by the Executive to undermine the implementation of the budget.

The Director-General, Budget Office of the Federation, Dr. Bright Okogwu, was accused of instructing Ministries, Departments and Agencies,MDA to ignore the 2013 Appropriation Act and work in accordance with the amended Act.

Already, Okogwu has been invited to appear before the Appropriation and Finance Committees to state his position.

Minority Whip, Mr Samson Osagie,ACN (Edo) speaking under a matter of urgent public importance, said MDAs were directed by Okogwu to implement only the amended part of the Act.

“The action of the DG of Budget Office is an infraction on the powers of the National Assembly, as well as an attempt to stop at nothing, but to blackmail the legislature.

“We must sound a note of warning here that no proposed amended budget shall be implemented by the MDAs, other than what was passed by the National Assembly and assented to by the President,” he said.