Okon Bassey in Uyo and Yekini Jimoh in Lokoja
Governor Udom Emmanuel of Akwa Ibom State and Kogi State counterpart, Yahaya Bello, yesterday presented their 2017 budget proposals to their respective state Houses of Assembly.
While that of Akwa Ibom State was N365.251 billion, Kogi State was N174bn
The budget christened ‘Budget of Consolidation’ is about N58, 749 billion less than the N423 billion that was budgeted for the year 2016.
Emmanuel explained that the 2017 financial estimate of the state is predicated on an oil benchmark of $35 per barrel at a production rate of 1.0 million barrels per day.
A breakdown of the budget showed that recurrent expenditure has N88.425 billion; capital expenditure got N193.952 billion while consolidated revenue fund charges secured N82.870 billion.
The total projected recurrent revenue for 2017 of N175 billion as against N284.666 for 2016 indicated that internally generated revenue (IGR) has N27.684 billion, statutory allocation –N15 billion, derivation fund-N120 billion, retained revenue from parastatals-N2.316 billion and value added tax (VAT)-N10 billion.
The sum of N171.295 billion is proposed for next year recurrent expenditure made up of personnel costs-N50.489 billion, overhead costs-N37.936 billion and consolidated revenue fund charges-N82.870 billion.
The total capital receipts and expenditure for the year 2017 is estimated at N193.956 billion as against N243 billion for 2016; showing that projected capital receipt of N3.706 billion will be transferred from the consolidated revenue fund.
However the balance of N190.250 is to be realised from opening balance from 2016 account of N6.250 billion, internal/external loans-N128 billion, grants-N3 billion, ecological funds-N2 billion, re-imbursement from federal government road N50 billion and dividends from government investment –N1billio
Sectoral allocation of the total estimated capital expenditure showed that the economy has the largest allocation of N128.021 billion, followed by administration with N42.204 billion, social got N19.953 billion, law and justice received N2.978 billion with regional N0.800 million.
The governor listed 12 underlining principles of the budget’s policy thrust and objectives to include ensuring accountability and transparency in government by fighting and tackling corruption in all facets of state administration.
Meanwhile, Presenting the Kogi budget yesterday before the Kogi State House of Assembly, Bello, who tagged the budget “Budget of New Direction” noted that the total budget was divided into recurrent expenditure of N58,531,404,254 representing 33.47 per cent and capital expenditure of N116,320,140,269 representing 66.53 per cent.
Out of the budget, the economy got the Lion share of N80,424,600,499, Social got N44,098,767,770, administration N43,442,160,340 while Law and Justice got the smallest share of N6,886,015,914.
According to him, his administration has budgeted a total estimated recurrent revenue of N81,666,312,024 consisting of N32,181,492,459 from internal sources, N35,309,699,767 as state’s share from the Federation Account, N8,085,355,569 revenue from Value Added Tax ( VAT), N2,209,764,229 from Exchange Differentials and N3,880,000,000 from Budget Augmentation.
Bello opined that the preparation of the budget was guided by the harmonisation of MDAs’ policy thrusts in line with New Direction Blueprint and actual appropriation to ensure that they have a Budget that meets the aspiration of the majority of the people in 2017.
He added that the fiscal strategy of government was anchored on the on-going Public Financial Management Reform (PFM) stressing that over the period of 2017-2019, the State government fiscal policy will be directed at improving the efficiency and effectiveness of spending and others.
“In our resolve to be a part of the global village, we cannot remain isolated from changes that are occurring in the larger system.
“That is why the Kogi State Government is adopting the reform process in line with Medium Term Expenditure Framework/Multi-Year Budget Framework as well as international best practices in quality information and record-keeping, and the management of modernised Government Accounts,” he stated.
In his address the Speaker of Kogi State House of Assembly, Rt. Hon. Umar Ahmed Imam said the outgoing fiscal year was shaped in challenges; staff verification, arrears of salary payments and infrastructural deficit.