THE federal government last week attributed the seemingly lack of implementation of the 2010 budget to the inability of the Ministries, Departments and Agencies (MDAs) to utilize their funds for implementation of capital projects. To this end a total sum of N749.746 billion was cash backed and so far released between January and October 2010.
Alhaji Ibrahim Dankwambo, accountant-general of the federation, explained that MDAs merely made use of N351.59 billion within the period under review resulting to a capital performance of 46.9 per cent. The comparative analysis of cash releases and budget implementation showed that for the year 2009, a total of N1.192 trillion was cash backed while the sum of N913.368 billion was used, indicating 76.6 per cent utilization.
Dankwambo disclosed that the summary of the Fiscal Account and Consolidated Income and expenditure for the period between January- October 31st, 2010 showed that the net Federation Account Receipt from oil revenue shared was N983.36 billion while net Value Added Tax (VAT) shared was N182.77 billion. The total of shared Excess crude (special distribution) and shared excess crude (augmentation) for the period under review amounted to N442.82 Billion and N51.85 billion respectively. 
Although Dankwambo expressed optimism that the performance of the capital vote by the MDAs would improve before the end of the year, he attributed the low utilization rate of the MDAS to the political crisis that engulfed the country as a result of the protracted ill health and death of former President Umaru  Musa Yar Adua.
“This year is a special one in the sense that we encountered some challenges,” he said. “We had a new president; the Federal Executive Council was reconstituted. But it is not too bad that we have that type of utilization rate considering the political challenges that we had.
“It is not that the MDAs do not want to use this money, but you have to consider the type of projects. We are just entering the period of dry season and more companies have been awarded contracts, so in the next few weeks, we will see improvements in the utilization rate of the capital votes.”
Dankwambo enumerated that the balances in special accounts as at October 30, 2010 include Domestic Excess Crude – N23.1183 Billion, 1.46 per cent Derivation and Ecology – N13.8452 Billion, 0.5 per cent Stabilisation of natural resources –N24.0335 billion, 3.0 per cent Development of Natural resources – N13.043 billion; FGN Excess Crude, Petroleum Product Tax, Royalty Escrow Account.