The Federal Government has introduced a new spending framework that requires ministries, departments and agencies to transfer 70 percent of their 2025 capital budget into the 2026 fiscal cycle.
The directive, contained in the 2026 Abridged Budget Call Circular issued by the Ministry of Budget and Economic Planning, is aimed at completing ongoing projects and easing pressure on limited revenues.
The circular instructs senior officials across MDAs to restrict their 2026 submissions to existing allocations already approved for 2025.
It emphasises that new capital projects will not be entertained and insists that spending proposals must align with national priorities that include security, the economy, health, education, agriculture, power, infrastructure and social protection.
The News Chronicle understands that the rollover decision followed weeks of internal reviews that showed that most projects in the 2025 appropriation had recorded slow progress due to delayed releases.
Officials familiar with the assessment say the government opted for continuity in order to prevent waste, reduce duplication and stabilise capital spending.
Under the new structure, only 30 percent of the 2025 capital vote will be implemented this year, while the remaining 70 percent forms the foundation of the 2026 capital budget.
MDAs are also instructed not to exceed their current overhead limits despite rising inflation, as the government struggles with weak revenues and mounting fiscal obligations.
Budget preparations must reflect the Medium Term Expenditure Framework and the administration’s development programmes under the Renewed Hope Agenda. All submissions are to be uploaded through the government’s digital platforms by December 9, 2025.
The financial outlook attached to the circular shows tighter revenues, higher debt service and a widening fiscal deficit, reinforcing the government’s push for prudent spending and improved value for money across public expenditure.
