Following indications that it might not be fully implemented, the federal government has decided to slash the funding of the 2016 budget.
Finance Minister, Mrs Kemi Adeosun, who gave this indication in London while addressing international investors, said the decision was favoured against an option of increased borrowing to plug the increasing revenue gap.
Adeosun said FG doesn’t want to increase its debt to GDP ratio in 2016, but hinted that the ratio would eventually go up over the next three years to about 20 per cent from the current 13 per cent.
Although she didn’t specify the expected amount to be cut from the budget, an official of the budget office said over 50 percent of the capital expenditure budget would not be implemented. This gives about N900 billion out of the total N1.8 trillion budgeted for capital expenditure in 2016.
The official added that the unimplemented portions would be transferred to 2017 budget, although the present government adopted a zero-based budgeting.