Four months into the 2024 fiscal year, the Federal Government has yet to commence the implementation of the capital component of the 2024 national budget.
Experts say the delay has significant implications for the nation’s economy, particularly concerning the government’s January-December budget cycle and its national development plan for 2021-2025.
Mrs Nkeiruka Onyejeocha, the Minister of State for Labour and Employment, explained that the government is still executing the capital allocations of the 2023 budget, which the National Assembly extended at the end of the previous year.
Despite the availability of funds for all requisitions from Ministries, Departments, and Agencies for 2023 capital projects, the implementation of the 2024 budget has yet to begin.
The delay in rolling out the 2024 cash plan is partly due to a decision to align it with the revised policy on cash management and bottom-up cash planning.
Dr. Oluwatoyin Madein, the Accountant General of the Federation, emphasized the importance of ensuring that the revised policy is integrated into the implementation of the 2024 capital budget.
On his part, Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, reiterated the government’s unwavering commitment to reforming the nation’s economy for the betterment of Nigerians.
He also emphasized the need for financial reforms and transparency to achieve national development goals.
The revised cash management policy includes provisions for investing idle cash balances in interest-yielding deposits and consolidating the monthly expenditure needs of Ministries, Departments, and Agencies.
It also outlines strategies for cash flow planning, adequate public expenditure funding, and management, with a focus on ensuring government commitment to budget implementation and value for money in public expenditure.
Edun had earlier announced the federal government’s strategic departure from the contentious practice of borrowing from the Central Bank of Nigeria (CBN) to cover budget shortfalls.
Addressing reporters during the signing of the 2024 budget in Abuja, Edun emphasized the Tinubu-led administration’s commitment to reforming government borrowing practices.
He stated that the government will move towards market-based financing to meet fiscal requirements.