By Babajide Komolafe
Central bank of Nigeria (CBN) said that capital expenditure accounted for 12.8 per cent of total budget implemented in the first half of the year by the federal government.
The CBN in its economic report for the first half of 2012, show that out of the N2 trillion spent by the federal government during the period, only N259 billion was released for capital expenditure
The report said, “Provisional data showed that aggregate expenditure of the Federal Government stood at N2,023.80 billion or 10.6 per cent of GDP in the first half of 2012. This was 20.9 per cent lower than the proportionate budget estimate, but 3.3 per cent higher than the level in the corresponding period of 2011. The lower aggregate expenditure relative to the proportionate budget estimate largely reflected the delayed disbursement of capital outlays and transfers. Of the total amount disbursed, recurrent and capital expenditures accounted for 79.5 and 12.8 per cent, respectively, while transfers accounted for the balance of 7.7 per cent.
“The economic classification of the recurrent expenditure showed that N1,194.31 billion or 6.2 per cent of GDP was expended on goods and services, N314.46 billion or 1.6 per cent of GDP on interest payments, while transfers appropriated N99.67 billion or 0.5 per cent of GDP. The expenditure on social and community services fell by 9.6 per cent to N259.56 billion or 1.4 per cent of GDP as against the N287.08 billion or 1.6 per cent of GDP recorded in the corresponding period of 2011. Similarly, the expenditure on economic services declined by 33.2 per cent to N130.46 billion or 0.7 per cent of GDP, from N195.35 billion or 1.1 per cent of GDP in the first-half of 2011.
“Provisional data on the functional classification of the Federal Government’s capital expenditure in the first-half of 2012 revealed that aggregate capital releases for economic services fell by 17.7 per cent below its level in the first half of 2011 to N97.82 billion or 0.5 per cent of GDP and accounted for 37.7 per cent of the total releases. Social and community services accounted for 15.3 per cent of the total but declined by 27.8 per cent from the level in the corresponding period of 2011 to N39.62 billion or 0.2 per cent of GDP in the first half of 2012. The outlay on administration accounted for 43.8 per cent of the total and decreased by 4.7 per cent to N113.61 billion or 0.6 per cent of GDP. Overall, total capital releases at N259.25 billion was 38.7 per cent of the proportionate budget estimate of N669.99 billion in the first-half of 2012.”