THE Federal Government may have halted new projects in 2020 budget in favour of completion of ongoing and abandoned projects, according to feelers from the Ministry of Finance.
Besides, there is a stoppage to purchase of vehicles.

The budget estimate is likely to be submitted to the National Assembly next week after President Muhammadu Buhari’s return from his state visit to South Africa.

It was learnt that all Ministries, Departments and Agencies (MDAs) have been given a budgetary ceiling for their capital expenditure needs in the 2020 budget.

Each of them has been given an envelope detailing what their capital expenditure covers, a source said on Tuesday.
The source added that because the Federal Government had resolved to complete ongoing and abandoned projects, the MDAs have been directed to remove the purchase of vehicles from their budgetary requirements.

But, military establishments may be exempted because they require operational vehicles to tackle insurgency and insecurity.
MDAs that have capital expenditure requirements higher than their approved ceiling, have been asked to adjust their budget or give convincing reasons why their demands should be accommodated.

Since the MDAs got their envelopes, ministers, permanent secretaries and top military and para-military chiefs have been visiting the Ministry of Finance and the Budget Office to defend their capital budget requirements.
The Federal Government has pegged capital expenditure for MDAs at N1.01 trillion exclusive of capital in statutory transfers.

The Wednesday (today) deadline given to the Senate Committee on Finance to submit its report on the 2020-2022 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) is no longer feasible, it was learnt on Tuesday.

The panel, which has since embarked on back-to-back meetings since the document was referred to it last Wednesday by the President of the Senate, Ahmad Lawan, is yet to receive presentation from Ministries, Departments and Agencies (MDAs) to enable it conclude its assignment on the MTEF/FSP.

The Chairman of the Senate Committee on Finance, Senator Solomon Adeola, disclosed on his twitter handle on Tuesday that the panel would be taking submissions from relevant agencies Wednesday (Today).

Adeola twitted that: “Shortly after the @MBuhari Broadcast, I headed for office in Senate to continue work on (MTEF/FSP) 2020-2023 as Chairman of Sen Cmtee on Finance.
“I was joined by Sen Ayo Akinyelure, a member, to prepare for invited FG agencies’ presentation tomorrow. All hands/ sacrifices on deck,” he said.
The Senate had on September 25 received the 2020-2022 MTEF/FSP from President Muhammadu Buhari and on September 26, referred the document to its committee on Finance to report back on Wednesday October 2.
In the document, the Federal Government proposed the sum of N10.002trillion as the 2020 Appropriation Bill and the sum of N2.45trillion for debt service for next year.

It also proposed to borrow N1.7trillion.

Share on:  Whatsapp  Twitter  Facebook