2022 Budget: Health, Defence, Transport, Works Get Highest Capital Allocations

2022 Budget: Health, Defence, Transport, Works Get Highest Capital Allocations
  • As FG begins training for 900 MDAs

Charles Ebi

The Ministries of Works and Housing, Defence, Health and Education are to get the highest capital allocation in the 2022 federal budget.

This is according to the 2022 Budget Call Circular released on Tuesday night.

The circular sets out the requirements and instructions that must be satisfied and followed in the preparation of the 2022 Federal Government Budget Proposal.

Details of the capital allocation as contained in the budget call circular signed by the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, showed that the Ministry of Works and Housing was to get the highest allocation of N352.65bn.

The N352.65bn represents about 20% of the entire N1.75tn capital allocation for MDAs in the 2022 budget.

This is followed by the Ministry of Finance, Budget and National Planning with N158.07bn while Defence with N128.94bn, Transport with N12.6bn; Health with N108.29bn and Education with N100.75bn.

Other ministries with high capital allocation are Water Resources which had N86.72bn; Aviation N69.3bn; Agriculture N83.82bn; Trade and Investment N51.08bn; Science and Technology N48.33bn; Power N40.25bn; Police Affairs N32.34bn; Interior N39.64bn and Presidency N25.82bn.

There was also Information and Culture which had N10.44bn; Communications N10.88bn; National Security Adviser N43.14bn; Labour N19.65bn; Mines and Steel N11.55bn among others.

It stated, “The aggregate amount available for capital expenditures in the 2022 budget is N3.61tn. This represents 26% of total expenditure and is 17.3% less than the 2021 provision of N4.13tn.

“The 2022 provision comprises of N1.76tn for MDAs, N366.14bn capital supplementation, N345.78bn capital component of statutory transfers, N10bn capital component of the Special Intervention Programme, N425.02bn capital budget of GOEs, N62.24bn for donor/grant funded expenditures and N638.32bn funded by project-tied loans”.

The document stated that the provision for development expenditure had been constrained by low revenues, increasing personnel and pension, as well as debt service costs.

It explained further that the continual provision of fuel and electricity subsidies was a major drainer to overall government revenues.

The document also disclosed that the Federal Government had barred its Ministries, Department and Agencies from introducing fresh capital projects to the 2022 fiscal period.

In allocating capital budget resources, the government urged MDAs to accord priority to ongoing projects, especially those nearing completion that fitted into the government’s current priorities.

In line with the objectives of the Medium Term National Development Plan, the government stated that projects with likelihood of completion not later than 2024 should be considered in prioritising capital projects.

In a related development, the federal government has commenced training for 4,000 workers drawn from 900 ministries, departments and agencies (MDAs), expressing its resolve to ensure consistent and timely preparation, submission and approval of annual budgets in tandem with its public financial management (PFM) reforms objective.

The Director General, Budget Office of the Federation (BoF), Mr. Ben Akabueze stated this in Abuja, yesterday during the takeoff of the training of MDAs on the 2022 budget preparation using Government Integrated Financial Management Information System – Budget Preparation Sub-System (GIFMIS/BPS).

To achieve consistent and timely preparation, submission and approval of annual budgets, Akabueze stated that the BoF had already commenced a series of activities related to the process of preparing the 2022 Budget. He said that these included a series of engagements and stakeholder consultations with key revenue-generating agencies, civil society organisations (CSOs), the National Executive Council (NEC), the National Assembly as well as the Federal Executive Council (FEC).

According to him, another key activity on the 2022 Budget calendar is the training of MDAs’ personnel who will be involved in budget preparation adding that the main goal of the training is to provide continuous learning to equip budget personnel with the requisite knowledge, skills and the tools they require to prepare and submit the 2022 Budget in a timely manner.

The budget, he stated, is also intended to be in tandem with extant FGN policies and guidelines as articulated in the 2022 FGN Budget Call Circular and other relevant laws/policies.

He regretted that MDAs do not study the Budget Call Circular in detail and as such make mistakes that should ordinarily be avoided if they had complied with the relevant sections of the Budget Circular. To this end, he disclosed that one of the modules at the training this year will address key items and sections to note in the 2022 FGN Budget Call Circular.

The 2022 FGN Budget Call Circular, Akabueze informed, had been issued ahead of the training to ensure that all issues and questions that participants may have are adequately addressed during the course of the training sessions.

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