Ndubuisi Francis in Abuja
The federal government recorded a revenue shortfall of N1.064 trillion in the first six months of the year, the Minister of Budget and National Planning, Senator Udoma Udo Udoma, disclosed on Monday.
The disclosure came as consultations for the 2017-2019 Medium Term Expenditure Framework(MTEF) and Fiscal Strategy Paper (FSP) commenced in Abuja.
Accoording to him, the shortfall was augmented by domestic borrowing amounting to N 600 billion, about 33 per cent of the approved borrowing of N 1, 818.87 billion.
He attributed the negative revenue situation on falling oil revenue and attacks on oil and gas installations in the Niger Delta region.
“The 2016 budget performance is reflective of the low revenue out turns attributable to the global and domestic developments earlier highlighted.
“Oil revenues fell significantly in the second quarter compared to the first quarter as a result of increased oil pipeline vandalism and production shut-ins.
“Non – oil revenues also declined compared with forecasts in the budget due to slow- down in economic activities and the acute shortage of foreign exchange,” Udoma said.
Giving an insight into the current expenditure situation for the year, he disclosed that N2.123 trillion had been spent by the federal government
Total capital expenditure as at the end of June, according to the minister, stood at N331.58 billion, while personnel cost had been fully met.