**Federal Government Delays Implementation of 2024 Budget Capital Component**
**Abuja -** The federal government has yet to begin implementing the capital component of the 2024 national budget, four months into the fiscal year. This delay has implications for the country’s economy.
The government has confirmed that it has released funds for 2023 capital projects, but the 2024 budget has not been implemented. The “Budget of Renewed Hope” proposed expenditures of N27.5 trillion, with an estimated revenue of N18.32 trillion and N8.7 trillion for the 2024 fiscal year.
Accountant General of the Federation Mrs. Oluwatoyin Madein explained that the government is still implementing the capital allocations of the 2023 budget, which the National Assembly extended at the end of 2023. The decision to continue implementing the 2023 budget was made after consultation with the Minister of Finance, the Coordinating Minister of the Economy, and the Minister of Budget and Economic Planning.
The delayed implementation of the 2024 budget may hinder the government’s January-December budget cycle and its National Development Plan 2021-2025. Ms. Madein stated that her office is compiling the 2023 cash plans to close the previous fiscal year and initiate the 2024 cash plan process, with initial submissions expected in May.
The delay is attributed, in part, to the implementation of a revised policy on cash management and bottom-up cash planning. The policy mandates MDAs to submit monthly expenditure needs for consolidation, requires capital and overhead cash needs to be based on legal and financial commitments, and provides for the investment of excess and idle cash.
Finance Minister Wale Edun emphasized the government’s commitment to reforming the economy and improving the lives of Nigerians. He encouraged accounting officers to embrace the government’s financial reforms for national good.