₦airaland Forum

Fellow Nairalanderz,
I don't know much about government administration that's why am here with my confusion.
My question is, now that 2020 budget is out, what happens to 2019?
Let take a look at 2019 budget.
.
lalasticlala do what you do best

Remember this are not numbers but money in Billions

Where are all this proposed project? Have they complete all this project? Are they going to fund it from 2020 budget? What happen to the 2019 budget fund allocated to it?

Apologies, I like inforgraphics

From a positive angle, In an organization, increase in recurrent expenditures can be due to increase in capital project (maintenance, new employees then salaries, wages, operational costs etc).
So how far has Nigeria development to warrant this yearly increase in recurrent expenditures.?

xmanco42:
Remember this are not numbers but money in Billions

Actually, they are just numbers and not money in billions. Nigeria’s budget is an estimate and actual performance is far from what was envisaged. Implementation of the 2019 budget is still ongoing with full implementation of the recurrent and debt servicing aspect. Sadly, implementing the capital component is the problem. Government began implementation (cash backing) last month and even Buhari said sometimes last week that they are planning to see if they can cash back about N600billion before December. If things go according to plan and the country is returned to January -December budget cycle, that mean only about N600billion out of the estimated N2trn was expended on capital projects in 2019. That’s just about 30% of the Budgeted sum.

seunmsg:
Actually, they are just numbers and not money in billions. Nigeria’s budget is an estimate and actual performance is far from what was envisaged. Implementation of the 2019 budget is still ongoing with full implementation of the recurrent and debt servicing aspect. Sadly, implementing the capital component is the problem. Government began implementation (cash backing) last month and even Buhari said sometimes last week that they are planning to see if they can cash back about N600billion before December. If things go according to plan and the country is returned to January -December budget cycle, that mean only about N600billion out of the estimated N2trn was expended on capital projects in 2019. That’s just about 30% of the Budgeted sum.

thanks but you need to down a bit to my level.
From what I understand the 2019 budget has not been fully implemented. This the revenue from 2020 will be use to implement it right? and also the revenue from 2021 will be use to implement 2020 budget.
My head is paining me, or am I the only not understanding this.

Interesting

Roll over budget......paying for previously paid for contracts!

xmanco42:
From a positive angle, In an organization, increase in recurrent expenditures can be due to increase in capital project (maintenance, new employees then salaries, wages, operational costs etc).
So how far has Nigeria development to warrant this yearly increase in recurrent expenditures.?

Government agencies keep employing people irrespective of whether they need their services or not. Minimum wage was also increased from N18k to N30. It’s not so hard to figure out why recurrent expenditure keeps going up every year.

xmanco42:
thanks but you need to down a bit to my level.
From what I understand the 2019 budget has not been fully implemented. This the revenue from 2020 will be use to implement it right? and also the revenue from 2021 will be use to implement 2020 budget.
My head is paining me, or am I the only not understanding this.

Implementation of the capital component of the 2019 budget started last month when government released about N290billion to MDAS. The president in his budget speech yesterday also said he has directed the finance minister to release an additional N600billion before the end of the year to bring capital implementation to N890b out of the budgeted N2.1trn. The 2019 budget will end in December according to plan and the 2020 budget will kick off.

Revenue from 2019 cannot be used to implement 2020 budget because 2019 budget is already running on deficit. The president disclosed that actual revenue generated as at June, 2019 is only 58% of what was projected. Simply put, the revenue generated in 2019 is not even enough to implement recurrent expenditure not to talk of capital or rolling some over to implement t 2020 budget.

seunmsg:
Implementation of the capital component of the 2019 budget started last month when government released about N290billion to MDAS. The president in his budget speech yesterday also said he has directed the finance minister to release an additional N600billion before the end of the year to bring capital implementation to N890b out of the budgeted N2.1trn. The 2019 budget will end in December according to plan and the 2020 budget will kick off.

Revenue from 2019 cannot be used to implement 2020 budget because 2019 budget is already running on deficit. The president disclosed that actual revenue generated as at June, 2019 is only 58% of what was projected. Simply put, the revenue generated in 2019 is not even enough to implement recurrent expenditure not to talk of capital or rolling some over to implement t 2020 budget.

If that is the case, why making bogus budge seeing that its actualization is bleak? Mind you govt has never reached or fulfilled its budget at anytime.

Ok

mabea:
If that is the case, why making bogus budge seeing that its actualization is bleak? Mind you govt has never reached or fulfilled its budget at anytime.

Those making the budget are in a better position to answer your question.

Imagine a budget that will be sustained by taxation, debt servicing ratio is higher than capital expenditure? Buharimonics is a voodoo economy.

Racoon:
Imagine a budget that will be sustained by taxation, debt servicing ratio is higher than capital expenditure? Buharimonics is a voodoo economy.

The alternative to sustaining our budget with taxation is to sustain it with debt. You cannot be criticizing imposition of taxes to fund budget and also be criticizing huge debt obligation. Government can’t do without the two.

seunmsg:
The alternative to sustaining our budget with taxation is to sustain it with debt. You cannot be criticizing imposition of taxes to fund budget and also be criticizing huge debt obligation. Government can’t do without the two.

What have the govt done with most of the borrowings that hitched Nigeria's debt burden to what it's today in order to resort to taxation?

How can govt adopt this uneconomical option in this midst of a poor GDP, mainly crude oil-dependent/import economy with poor investor confidence?
Where are the improved revenues the govt have been lying about? TSA savings, FIRS, Customs,
so called recovered/relooted funds etc?