Buhari vows to release 100 percent 2021 capital allocations to MDAs

President Muhammadu Buhari promised ministries and agencies of the federal government that they will receive 100 percent their capital allocations this year.

President Buhari made the pledge in Abuja Thursday at the presentation of the 2022 budget to the National Assembly.

Up til 4 October Buhari revealed that only 1.732 trillion Naira had been released for capital expenditure.

This was less than 50 percent of the N3.85 trillion projected for the year.

But he vowed to change the narrative.

“I am pleased to inform you that we expect to fund MDAs’ capital budget fully by the end of the fiscal year 2021”, he said.

Buhari who agonised over revenue shortfall this year, said the government had prioritised capital funding in respect of roads and rail projects, power, education, agriculture and health.

“Despite our revenue challenges, we have consistently met our debt service commitments.

“We are also up to date on the payment of staff salaries, statutory transfers, and overhead costs”, he said.

Except for an 11 percent increase in non-oil tax revenue, which totalled N964.13 billion as July, other revenue heads for the government nosedived.

Although oil sold at an average of $68.53, well above the $40 benchmark, actual revenue that accrued to the Federation was N2.61T as against the projected N3.95T.

Federal Government got N570.23B from oil, which is 51 percent of the expected, the difference being consumed by subsidy costs.