FG extends capital elements of 2016 budget

The federal government has extended the tenure of the capital elements of the 2016 budget to May 5, 2017 or the passage of the 2017 budget, adding “whichever is the earliest.”

Minister of Finance, Mrs. Kemi Adeosun, said that the extension was in line with a circular from the Accountant-General of the Federation, Mr. Idris Ahmed.

Mrs. Adeosun therefore, urged federal ministries, Departments and Agencies to take note of the content of the circular.

s issued a Circular extending the tenure of the Capital elements of the 2016 Budget until May 5, 2017 or the passage of the 2017 Budget, whichever is the earliest, Minister of Finance, Mrs. Kemi Adeosun has announced.

Federal Ministries, Departments and Agencies are hereby urged to take note of the content of the Circular.

Recall, the Chairman, Senate Committee on Appropriation, Senator Danjuma Goje, had recently said that the 2017 Appropriation Bill may be passed before May 2017, warning heads of Ministries, Departments and Agencies (MDAs) to desist from the practice of “mopping up” of funds at the end of March, 2017.

The lawmaker observed that the lifespan of the 2016 budget would end on May 5, 2017.

He however, said the National Assembly maybe compelled to extend the validity period of the budget, in the event that it is unable to pass the 2017 Appropriation Bill on or before the midnight of May 5, 2017.

Goje said: “Last year, when we were producing this 2016 Appropriation Bill, we realized that at the end of each year, there were usually requests for an extension of the budget from the executive. To avoid that, we decided to incorporate this new thing.

“In the 2016 Appropriation Act, which President Muhammadu Buhari signed into law, clause 11 of it says that “in line with the provisions of Section 318 of the Constitution of the Federal Republic of Nigeria 1999, as amended, this bill will run for a period of 12 months, starting from the day it is assented into law.”