The Federal Government has directed all Ministries, Departments, and Agencies (MDAs), to carry over 70% of their 2025 capital allocations into the 2026 fiscal year for implementation as part of its ongoing fiscal reforms to enhance budget continuity and ensuring completion of ongoing projects.
The directive was conveyed to the MDAs through the 2026 Abridged Budget Call Circular, issued by the Ministry of Budget and Economic Planning and circulated to ministers, service chiefs, and heads of agencies.
Specifically, the circular outlines a new framework that caps all 2026 capital budget ceilings at 70 per cent of 2025 project allocations, stating that only 30 per cent of the 2025 capital budget will be released in the current year, while the remaining 70 per cent forms the base of the 2026 capital spending.
In addition, Budget and Economic Planning ministry stated that new capital projects were allowed in next year’s budget, adding that the MDAs are expected to focus on completing ongoing capital projects.
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The circular further directed the MDAs to ensure that rollover items aligned with government’s priorities, including national security, economic growth, education, health, agriculture, infrastructure, power, energy, and social safety nets, while prohibiting them from exceeding their 2025 overhead ceilings in 2026 submissions, despite inflationary pressures.
It stated: “We are constrained by revenue challenges. While we note the impact of inflation, proposals that exceed approved ceilings will be adjusted downward.”
The government clarified that the policy directive, reflecting tighter revenue and rising debt pressures, was intended to prevent duplication, strengthen continuity, and ensure that uncompleted projects are not abandoned.
On Budget Submission and Oversight, the MDAs were required to submit their budgets through the GIFMIS Budget Preparation Subsystem, while government-owned enterprises (GOEs), will submit via the Budget Information Management and Monitoring System, and that all submissions should be made latest Tuesday, December 9, this year.
The ministry stated that Personnel costs of the MDAs had already been calculated using data from IPPIS and prior submissions, informing them of their personnel costs ceiling for 2026.
According the government, the rollover policy reeled out to enhance budget credibility and discipline, prevent wastage, and ensure that strategic projects under the Medium-Term Expenditure Framework (2026–2028), the Renewed Hope Infrastructure Development Plan, the Ward Development Plan, the National Development Plan, and the Accelerated Stabilisation and Actualisation Plan are delivered.
