Osinbajo writes Reps, seeks approval of N222.2bn FCT budget
Acting President, Yemi Osinbajo has requested the approval of the House of representatives for the Federal Capital Territory administration’s 2017 budget proposal of N222, 360, 551,512.
The request was contained in a letter dated 20th July 26, 2017, and read yesterday by Speaker Dogara in line with Section 121 of the c0nstitution.
The letter reads in part: the FCTA runs two budgets namely, national and statutory budgets. The FCT component of the national budget is funded directly by the federal government for the provision of district infrastructural development, water supply, sewage treatment and infrastructural development of the satellite towns of the federal capital (FCT) the statutory budget on the other hand, is funded from the statutory allocation, internally generated revenue (IGR) and other sources of funds accruable to the federal capital territory (FCT).
“It should be recalled that the sum of N30,397,122,872.00 was appropriated for FCTA in 2017 approved federal budget. The statutory budget is presented to the national assembly after the passage of the federal budget in order to enable the FCTA capture essential capital projects that are often removed from the federal budget.
“The FCTA has prepared the 2017 FCT statutory budget of the sum of N222, 360,551,512.00 based on the 2017-2019 medium term expenditure framework (MTEF) and key assumptions of the federal government for 2017 budget. The breakdown of the budget is as follows: Personnel cost-N52, 574,479,667.00 which represents 23.64%; overhead cost-N41,294,590,480.00 representing18% while Capital Expenditure is N128,491,481,366.00 representing 67%.
“In line with the federal government’s emphasis on capital projects, the FCT budget ratio for capital and recurrent expenditure is 57.79% and 42.21% respectively considering the need to complete on9going projects, 93% of the capital expenditure proposal is dedicated for such projects, while 7% is for new projects mainly for the provision of access roads and social amenities.
“The estimated revenue for the FCT 2017 budget proposal is to accrue from the following main sources: total revenue allocation and FCT share of 1% out of the federal government share of account allocation committee inclusive of VAT and internally generated revenue of which N139.988,517303.00 is accrued on major revenue from agencies of the FCT