THREAT of recession is pushing the President Muhammadu Buhari-led Federal Government to plan massive infrastructural and social investment spending, The Guardian has learnt.

Last night, the Presidency hinted of plans to spend not less than 40 per cent of the 2016 budget on capital projects, a move which one of the sources described as ‘unprecedented in the nation’s budgetary history.’

Also top on the agenda of the Buhari administration is to mobilise substantial funds within and outside government to fund the Conditional Cash Transfer (CCT).

CCT programmes aim to reduce poverty by making welfare programmes conditional upon the receivers’ actions, meaning that the government (or a charity) only transfers the money to persons who meet certain criteria.

Government also plans to make significant savings from leakages and fraud, which, according to one of the sources, “have marred government spending in the past.”

No doubt, reports about government’s plan to spend up to N8 trillion in 2016 have continued to dominate the media space without any of the presidential officials confirming it. Yet, it is clear that the Buhari presidency has decided to raise such huge funds to build critical infrastructure as rail, roads and power, while also commencing in 2016 some of the promises of the All Progressives Congress (APC) for a Conditional Cash Transfer — including perhaps the N5,000 welfare package for the unemployed (youths) — and school feeding on a national scale.

Going by the yet-to-be-confirmed report on an N8 trillion budget estimate in 2016, therefore, it would appear that the Federal Government is ready to spend up to N3 trillion on roads, rail infrastructure as well as on other safety nets.

Sources within the Central Bank of Nigeria (CBN) confirmed that the saving from the new implementation of the Treasury Single Account (TSA) is working and is projected to bring in hundreds of billions of naira for the 2016 budget.

Specifically, some members of the newly inaugurated Federal Executive Council, have started holding several planning meetings with the Vice President on finalising the budgetary estimates and making a proposal ready for consideration of the Federal Executive Council on President Buhari’s directve.

The Guardian was told last night that the president is determined to ensure that every available resource of the Federal Government is applied to “funding a very ambitious budget just to bring economic succour to the Nigerian people in a way that has not been done for a long time now in the area of public infrastructure and social safety nets for the very poor people, many of whom came out to support his election earlier this year.”

It was disclosed that even before the new ministers were sworn in last week, the presidency had been holding meetings with top civil servants and CBN officials on how to fund to CCT. A template was said to have been decided which the FEC will be considering soon for final approval before going to the National Assembly for appropriation.


Read more from Raw Global News via http://www.rawglobalnews.com/news/40-per-cent-of-2016-budget-may-go-to-capital-projects/

It will be very interesting if the APC government can truly expend about 40% of next year's budget on capital expenditure. I strongly believe they can achieve this feat by proper planning, serious cutting of all unnecessary government overhead cost and sustained blockage of revenue loopholes as currently being done through the TSA.

If this comes to pass, it is save to say that Nigeria is on the path to greatness once again. From less than 20% of budget on capital projects despite unsurpassed earnings, to 40% of about 8 trillion Naira during this recession, we have made a wise decision in electing Buhari.

Sources within the Central Bank of Nigeria (CBN) confirmed that the saving from the new implementation of the Treasury Single Account (TSA) is working and is projected to bring in hundreds of billions of naira for the 2016 budget.

We can only imagine what we can achieve if loopholes and wastages are blocked. Yet some dolts will want us to believe differently.

May God continue to guide the president and his team aright.

.

In other words, Deputy Vice-President Fashola is about to get very very busy. This is highly ambitious, but the resolve of the President to aggressively pursue government savings gives me informed hope that the President Buhari will achieve this.

RawJooh:
The Guardian was told last night that the president is determined to ensure that every available resource of the Federal Government is applied to “funding a very ambitious budget just to bring economic succour to the Nigerian people in a way that has not been done for a long time now in the area of public infrastructure and social safety nets for the very poor people, many of whom came out to support his election earlier this year.”

When last did we receive news that even pretended to care for the interest of the common Nigerian? During those rotten forgotten years, if it wasn't N1 Billion Aso Rock kitchen budget it was N10 Billion for independence celebrations.

Change. Delivered.

40% is a VERY tall order and would indeed be a milestone if it is achieved.

I strongly believe my president has what it takes to deliver on his promises.

God bless Nigeria.

Lalasticlala Seun Obinoscopy, this is worthy of FP. It relates to our national progress.

With 40% Capital investment i expect unprecedented economic growth.....

I wonder where the money would come from to finance an N8 Trillion budget, elections are over so there's no need to continue making wonderful promises. However, IF (I pray this comes to pass) they can achieve this feat (even if it's N6Trillion), then I would have no fears any more about Nigeria certainly being on the path to reclaim its glory.

Which ever way they do it is good so long it is for the best insterest of the country.

obailala:
I wonder where the money would come from to finance an N8 Trillion budget, elections are over so there's no need to continue making wonderful promises. However, IF (I pray this comes to pass) they can achieve this feat (even if it's N6Trillion), then I would have no fears any more about Nigeria certainly being on the path to reclaim its glory.

The first part of your post is very needless.

If you read the OP, the TSA alone can give us a fifth of the proposed budget.

With the reforms in Customs and the expected improved revenue, we can get up to a sixt of the budget from there.

Reforms in FIRS, Petroleum sector and a host of others will surely improve the govt earnings.

Agreed it's an audacious budget but witha determined govt, it is doable.

No, 40% of next year budget should go to capital expenditure....then it should increase to nothing less than 60% before 2019. That's the change we expect and I'm certain, with what I've seen so far, that's what we'll get.

obailala:
I wonder where the money would come from to finance an N8 Trillion budget, elections are over so there's no need to continue making wonderful promises. However, IF (I pray this comes to pass) they can achieve this feat (even if it's N6Trillion), then I would have no fears any more about Nigeria certainly being on the path to reclaim its glory.

"Aim for the stars, even if you miss, you land among the clouds" - Anonymous.

This is indeed a bold, giant leap away from the norm. I can only imagine the output of this decision. For those questioning the possibility of this because of the decline in crude prices, realize that in three months FIRS was able to credit the FG with over 900billion. There's no doubt in my mind that it's POSSIBLE with this government.

40 percent is a fair share, but the problem we have is full implementation of budget

40 percent is a fair share, but the problem we have is full implementation of budget.

40 percent is a fair share, but the problem we have is full implementation of budget

these guys have started again ooo! okay let me help you guys to understand all that English in naira and kobo.

1,right now the fg budget is #4.4trillion and the forecasted revenue is #3.6trillion with a deficit of #1trillion this is at a cost of $60-$65 per barrel.

excluding #4 trillion to be disbursed to states and l.g.a as revenue shared.
this budget has zero budget for subsidy!

2,fg currently
has #1.3trillion for capital budgets (guess why you can't see it.........)

3.with a present 20% of capital budget,you want to push it to 40%.it means (#2.6trillion)

4.(#4.4tr + #1.3=#5.7 trillion budget

5.#5.7tr-#3.6tr=#2.1trillion federal budget deficit alone

6.the federal budget is shared 53:47 ratio of oil to non oil.from #3.6 trillion oil receipts is #1.903trillion at $60-$65 per barrel (now with $40 per barrel)
total receipts is #1,1trillion and the fg is paying subsidy means addition ally reduction to less than #1trillion

7.remember the f.g budget is #5.7 trillion with #4.4 trillion to be disbursed to states and l.g.a
total re riots required is #10.1 trillion at #200 a dollar($50.6 billion).

8.and the op is mentioning 8 trillion for federal budget alone.it is A very talll figure if you understand the implication.

Rawani:


"Aim for the moon; even if you miss you’ll land among the stars" - Anonymous.

do you understand that the nearest star is light years away form the earth's moon

Lol you're right, I think it's actually "aim for the stars, even if you miss, you land among the clouds".

baralatie:

do you understand that the nearest star is light years away form the earth's moon

infrastructure as well as on other safety nets.
Sources within the Central Bank of Nigeria (CBN) confirmed that
the saving from the new implementation of the Treasury Single Account (TSA) is working and is projected to bring in hundreds of billions of naira for the 2016 budget.

so why did d dullaard said nigeria is broke

PassingShot:

The first part of your post is very needless.

If you read the OP, the TSA alone can give us a fifth of the proposed budget.

With the reforms in Customs and the expected improved revenue, we can get up to a sixt of the budget from there.

Reforms in FIRS, Petroleum sector and a host of others will surely improve the govt earnings.

Agreed it's an audacious budget but witha determined govt, it is doable.

FIRS and customs are presently part of the TSA. But I hope the revenues from both agency will improve significantly next year as a result of the ongoing reforms.