FG Hopeful of Improved Budget Performance

Abuja — The Budget Office of the Federation in the Ministry of Finance said yesterday that the momentum recorded in the budget performance so far, was a strong indication that the implementation would improve in the third and fourth quarters of the fiscal year.

The office said the Second Quarter Budget Implementation Report registered a bright spot regarding implementation. The report, the office indicated, had revealed that , several key ministries showed strong performance during the period, stating that, progress was made in the execution of important road projects such as the East-West road, the dualisation of which is expected to be completed next year.


As exclusively reported by THISDAY, the Federal Government recorded a 42.92 percent overall implementation of the capital budget in the second quarter of the year as stated in the implementation report prepared by the office. The performance level represented an improvement over 21 percent recorded in the first quarter.

Director-General of the Budget Office of the Federation, Dr. Bright Okogu, said the recently released Second Quarter Budget Implementation Report was prepared in line with the Fiscal Responsibility Act of 2007.

He said the quarterly budget review was an intrinsic part of the government's strategy to measure progress and infuse a sense of urgency in the pursuit of government's economic priorities encapsulated in the Seven-Point Agenda.

Okogu gave the assurances that, "in accordance with the vision of the President, the Ministry of Finance and the Budget office of the Federation are determined to work with the other MDAs to ensure that clear and visible progress is made in the areas which will improve the lot of Nigerians in a systematic and sustainable way."

He expressed the hope that, "given the momentum which can be seen in the budget performance, there is a strong basis for believing that the implementation rate will improve in the final two quarters of the year."

Okogu recalled that the capital budget implementation for the quarter averaged 42.92 percent, being N193.08 bn out of N449.88 bn cash-backed by the office of the Accountant-General of the federation.

This is an improvement of about 20 percent over the first quarter performance. The DG recalled that a capital vote of 93.2percent of the 2009 Budget was allocated to priority sectors like Transport, Power, Works, Housing & Urban Development, the FCT, Police, Food Security (Agriculture and Water Resources), the Niger Delta, and Human Capital Development (Education and Health).

The Report showed that some sectors are beginning to show visible signs of the attention being devoted to them. These include the FCT, Agriculture , Niger Delta, Education and Health.

"Of the 44 Federal Ministries, Departments and Agencies (MDAs) assessed, 12 of them utilised over 70 percent of the capital vote

released to them. Three - FCT, Aviation and Niger Delta - improved from below average performance to 70.85percent, 77.25percent and 100percent respectively. MDAs which need to do more to meet their targets include Works, Power, Police, Education, and Transport," he added.