It was learnt that the Federal Government has been consistently meeting its recurrent budget obligations in spite of the shortfall in the revenue due to the reduction in oil production since the escalation of the Niger Delta crisis. This was possible since the government draws down on the excess oil revenue which it shares with the other two tiers of government each month.
The Accountant-General of the Federation (AGF) also said in Abuja yesterday that the 50 per cent of the Capital Budget had been released to enable the Federal Government contractors handling various jobs for its ministries and agencies mobilise to site.
He explained that the amount released has been cash-backed as the Federal Government had made it a policy to stop the practice of issuing warrants without cash backing.
With the creation of the Budget Monitoring and Price Intelligence Unit in the Presidency, all major contracts executed for the Federal Government have to be certified before payment could be effected.
Source: Vanguard
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