The Senate on Tuesday approved President Muhammadu Buhari’s request for virement of funds (fund transfer) in the 2016 budget.
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In October, the president had written to the senate asking for a transfer (virement) of funds appropriated for special intervention in the 2016 budget to other exigent items.
“I write to request for the virement of funds appropriated for special intervention (recurrent) and special intervention (capital) to fund some critical recurrent and capital items,” the president wrote.
“This request has risen due to a number of reasons, including shortfalls in provisions for personnel costs, inadequate provision ab nitio for some items like the amnesty programme, continuing requirements to sustain the war against insurgency, and depreciation of the naira.
“However, considering the fact that the budgeted revenues are running behind target largely due to renewed violence in the Niger Delta, and there are no supplementary revenue sources, the most viable option for now is the virement of appropriated funds from heads and sub-heads that may not be fully utlised before the end of the year.
The president had requested for the virement of N180.8bn from the funds appropriated for Special Intervention (Capital and Recurrent).
The House of Representatives, which is concurrently working 0n the request, had raised it to N208bn, while the Senate jacked it up to N213bn.
On Tuesday, the Senate gave the approval during the plenary.
The Senate’s approval followed the presentation of the report of the Committee on Appropriations led by Danjuma Goje.
In banking and finance, virement is an administrative transfer of funds from one part of a budget to another.