State House 2016 budget 48% implemented ― Permanent Secretary

IMPLEMENTATION of the 2017 capital budget of State House has reached 47.5% with the release so far of N5.196billion.

State House Permanent Secretary, Jalal Arabi, disclosed this when members of the House Committee on Special Duties came to the premises on their oversight function.

Out of the money released, he said N4.8billion (93.1%) was spent on the projects tied to the funds, saying that N5.745billion representing 52.5% was yet to be released.

According to him, State House has re-prioritized projects in the Medical Centre under the 2017 budget and has suspended most of its capital expenditure proposals for now.

He said the State House would take advantage of the supplementary budget window when necessary as he noted that the 2017 budget has been reviewed downwards to
N13,567,979,278.72 from N16,563,395,992.00.

Arabi said the 2017 budget has become less ambitious than the 2016 appropriation as personnel, overhead and capital costs were minimally reviewed upwards.

The Permanent Secretary revealed that all allocations for the 2016 recurrent expenditure have been received up to the month of December 2016.

Arabic told the Hon. Nasiru Daura-led committee:  “The state house capital budget has always been situated in five cost centres as against seven under the recurrent, with a total appropriation of N11,140,852,010. However, releases were only made to three cost centres.

“N5,196,581,458.64 was released to date amounting to 47% of the amount
appropriated, leaving a balance of N5,745,905,910.36 and representing 52.5%.

“Of the released amount N4,839,238,955.97(93.1%) has so far been expended on the projects for which the funds were tied and released.

“We are still expecting additional releases before the end of March especially on hospital equipment to enable us conclude some of the procurements as per the budget.”

He explained that State House estimates were all based on existing projects that were
classified as ongoing and rolled over from the 2016 appropriation “and so, have the potential of being reduced in case additional releases are made for the projects before the end of the extended implementation period (March 2017). There is therefore no newly conceived project for the 2017.”

He added: “We have equally re-prioritised the State House Medical Centre projects which are undergoing a review, hence the suspension of all the capital expenditure proposals for now. We shall however take advantage of the supplementary budget widow when necessary.”

Chairman of the committee had earlier explained that they were in State House to determine the level of implementation of the 2016 budget as well as to inspect completed and ongoing projects.