The 2022 budget call circular released by the Federal Ministry of Finance shows that the Ministries of Works and Housing, Defence, Health and Education would get the highest capital allocations.
According to the circular signed by the minister, Zainab Ahmed, the Ministry of Works and Housing will get the highest allocation of N352.65 billion representing about 20 per cent of the entire N1.75 trillion capital allocation for MDAs in the budget, followed by the Ministry of Finance, Budget and National Planning with N158.07 billion.
This is followed by Defence with N128.94 billion, Transport with N12.6 billion; Health with N108.29 billion and Education with N100.75 billion.
Other ministries that have been allocated high capital budgets include Water Resources N86.72 billion; Aviation N69.3 billion; Agriculture N83.82 billion; Trade and Investment N51.08 billion; Science and Technology N48.33 billion; Power N40.25 billion; Police Affairs N32.34 billion; Interior N39.64 billion and Presidency N25.82 billion.
The budget call circular spells out the requirements and instructions that must be satisfied and followed in the preparation of the 2022 Federal Government Budget Proposal.
“The aggregate amount available for capital expenditures in the 2022 budget is N3.61tn. This represents 26 per cent of total expenditure and is 17.3 per cent less than the 2021 provision of N4.13tn.
“The 2022 provision comprises of N1.76tn for MDAs, N366.14bn capital supplementation, N345.78bn capital component of statutory transfers, N10bn capital component of the Special Intervention Programme, N425.02bn capital budget of GOEs, N62.24bn for donor/grant funded expenditures and N638.32bn funded by project-tied loans,” the document read in part.
It further stated that the provision for development expenditure had been constrained by low revenues, increasing personnel and pension, as well as debt service costs and that the continual provision of fuel and electricity subsidies was a major drainer to overall government revenues.
Further information on the document is to the effect that the federal government has barred Ministries, Department and Agencies from introducing fresh capital projects to the 2022 fiscal period and that in allocating capital budget resources, MDAs should accord priority to ongoing projects, especially those nearing completion that fit into government’s current priorities.
