Edo State Assembly Passes 153.2bn Naira Budget For 2017

Edo State Assembly Passes 153.2bn Naira Budget For 2017The Edo State House of Assembly on Monday passed the state’s 2017 budget proposal of 153.18bn Naira.

Governor Godwin Obaseki had on December 19, 2016 presented a budget proposal of 150bn Naira to the House for consideration and passage.

The budget consists of N75.11bn for capital expenditure, while the proposed recurrent expenditure stood at N74.9 billion

The House of Assembly increased the appropriation bill with about N3bn, representing 0.15 increase.

The Chairman, Assembly Committee on Appropriation and Project Monitoring, Mr Damian Lawani, said that the budget reflected the needs of the people and was designed to consolidate and complete all ongoing projects.

During the consideration of the bill, N76.6bn was allocated for capital expenditure, while N76.5bn was allocated for recurrent expenditure.

The breakdown of the proposal showed that N18.5bn, N7.2bn, N3.6bn and N6.034bn were allocated for the recurrent expenditure of the administrative, economic, law and justice and social sectors, respectively.

Also, N5.68bn, N47bn and N1.84bn and N22.09bn were allocated for the capital expenditure for the administrative, economic, law and justice and social sectors, respectively.

The House of Assembly, after the consideration of the document with amendments, passed the bill.

The Speaker, Mr Justin Okonoboh, directed that the clean copies of the bill be sent to the Governor for his assent.

Governor Okorocha Proposes N131bn As Imo’s 2017 Budget

Governor Okorocha Proposes N131bn As Imo's 2017 BudgetThe Imo State Governor, Rochas Okorocha, has presented before the Imo State House of Assembly, a budget of N131, 143,144,277 for the 2017 fiscal year.

During the presentation of the budget at the hallow chambers of the Imo state house of assembly in Owerri the state capital, Governor Okorocha announced that the document has been named “Budget Of Consolidation and Continuity II”.

Governor Okorocha disclosed that, capital expenditure has N77, 413, 2016, 169, equivalent to 59.03% while recurrent expenditure has N53, 729,938,108 equivalent to 40.97%.

He said that the 2017 budget proposal would seek to “stimulate the economy by focusing on infrastructural development, delivering inclusive growth, creating good environment for industry, commerce, tourism and investment”.

The proposed 2017 budget is higher than the 2016 budget by 27,934,662,247 which translates to 28.3% increase.

Ayade Presents 2017 Budget To Cross River House of Assembly

Ayade Presents 2017 Budget To House of AssemblyThe Cross River State Governor, Ben Ayade, has presented the 2017 Appropriation Bill of 301 billion naira to the state House of Assembly.

Christened ‘Budget of Infinite Transposition’, the budget, according to the Governor, seeks to achieve three cardinal objectives of improving and expanding infrastructure through Public Private Partnership, planting the tree of the state future revenue generation and gradual industrialization of the state.

Giving a breakdown of the budget, N81,142,339,895.32 is allocated for recurrent expenditure while N220,060,873,053.48 is allocated for capital expenditure.

The recurrent expenditure represents 24.8% of the budget while the capital expenditure represents 75.2% of the budget estimate.

He said that the state intends to fund the budget from Internally Generated Revenue (IGR), Statutory Allocation, Capital Receipts and Projected Investor Revenue from Direct Foreign Investments.

According to the estimate, N81,142,339,895,32 is expected to be generated through IGR, N41,676,220,113.64 from statutory allocation, 76,070,524,023.85 from donor agencies, 38,474,892,065.29 from the Federal Government’s Economic Recovery Fund and 63,839,236,850.70 from revenue from investments.

Making the presentation, Ayade informed the Assembly that it was the desire of his administration in 2017 to focus on the superhighway because it is the main energy that will open up the vista of opportunities for prosperity.

Describing the size of the appropriation bill as ambitious, Ayade said he was optimistic that it can be achieved because when there is cash deficiency, the intellect takes over.

Governor Ahmed Presents Kwara Budget 2016

Kwara Budget The Kwara State Governor, Abdulfatah Ahmed, has presented a budget estimate of 116,164, 043,000 naira to the state House of Assembly for the 2016 fiscal year.

The estimate is a decrease of over 1.5 billion naira over the 2015 revised appropriation which represents 1.3% decrease.

Out of the estimate, the budget is made up of recurrent expenditure of over 48 billion, over 10 billion naira for the public debt service while over 57 billion is earmarked for capital expenditure.

Tagged the budget of sustained expansion, the State Governor, Abdulfatah Ahmed, who laid the budget before the state lawmakers, said that the budget proposal was based on zero-budgeting approach for ministries, departments and agencies to justify all their expenditure needs in line with the prevailing economic situation in the country.

According to him, the total projected revenue estimate from all available sources to the state for 2016 fiscal year is over 116 billion naira.

Governor Ahmed also said that the 2016 Kwara budget holds great opportunity for the state and country, despite the challenges ahead.

He called on residents of the state to continue to cooperate with the government in its effort to elevate the state and contribute their quota to the development of the state.

Yobe Governor Presents 80.6 bn Naira For 2015 Budget

2015 budgetYobe State Governor, Ibrahim Gaidam, has presented an appropriation bill of 80.6 billion naira to the State Assembly for scrutiny and subsequent passage into law for the 2015 Budget.

The Governor, while presenting the budget to the House, said that the current figure represents decrease of 22.2 billion naira, equivalent to 22 per cent less than that of 2014.

Ibrahim Gaidam said that the reduction in budget size was because of the downward projection from the federation’s account.

Governor Gaidam revealed that 37 billion naira is allocated to capital expenditure, while 43 billion naira is for the recurrent expenditure, a representation of 46% and 54% respectively.

The budget, which would be financed through Internally Generated Revenue, statutory allocation, Value Added Tax, ecological fund and access crude oil, according to him, is aimed at upgrading the performance of infrastructural facilities and identify areas of job creation, among others.

Giving highlights of the 2014 budget, the Governor said that so much was recorded despite the insurgency which claimed several lives in the state. He also condoled with those who lost loved ones, as well as properties during the chain of attacks.

The Speaker of the State House of Assembly, Adamu Dogo, said that the presentation of the appropriation bill by the Governor marked the first reading. He gave an assurance that the House would give the bill speedy deliberations, with a view to achieve immediate passage into law.

The Speaker also praised the leadership style of the Governor, which has made the return of almost all House members ahead of the 2015 election easy.

2014 Budget: Nigerians Should Also Cut Spending On Rent, Feeding – Ogunsanwo

A Data and Information Analyst, Babajide Ogunsanwo, has called on Nigerian workers to cut down on their recurrent expenditure, which includes expenses on feeding and rent as the most recent data from the Nigerian Bureau of Statistics reveal that “on average, the Nigerian man and woman spend 76 percent of their salaries on recurrent spending.”

Ogunsanwo said this while speaking on Channels Television’s flagship programme, Sunrise Daily, adding that the call for government to reduce the recurrent expenditure of the nation should first be put into practice at domestic levels.

“What we need to realize in the budget of 2014 is to understand that we all have roles to play,” he said, adding that “even though we expect the government to reduce the recurrent expenditure, we also have our roles to play by lowering our own recurrent expenditure as citizens, and prioritise our spending.”

He added that the Goodluck Jonathan led administration should not be blamed for the high and increasing recurrent expenditure in the national budget as the issue existed as far back as 1971 “when recurrent expenditure was over 83 percent of the national budget.”

He advocated that Nigerian parents should spend more on education as “on an average, the Nigerian parent spends less than one percent of their income on the education of their children.”

Ogunsawo, who lauded the Finance Minister’s presentation of the 2014 budget, spoke on the impact it would have on the youth.

While speaking on the impact the budget could have on job creation, the analyst said that there was evidence that the government is making dramatic changes in that area, as only 800,000 jobs were created in 2006 – 2011 while 1.3 million jobs were created in 2013.

The created jobs were in the informal sector and manufacturing sector.

He noted that the “reason why the youths don’t feel the impact of the jobs that are being created is because only 31 percent of these jobs are full-time jobs… so we are creating so many jobs but the jobs aren’t really targeted towards full-time private sector jobs.”

On manufacturing:

Ogunsanwo said that the manufacturing sector was improving, adding that “In 1982, for every one naira of goods we exported, we imported 52 naira. In 1999, for every one naira of good exported, we imported 23 naira. As it is today, for every one naira of goods we export, we only import 12.”

He expressed hope that the slope would change significantly as “1968 was the only year we exported more goods than we imported.”

Recurrent Expenditure Escalated Due To Struggle For ‘National Cake’ – Etomi

A former Chairman of the Business Law section of the Nigerian Bar Association, George Etomi on Friday explained that the reason the recurrent expenditure has risen far above the capital expenditure is as a result of the hustle to partake of the ‘national cake’.

Speaking on Channels Television’s Business Morning, Mr Etomi explained that until government reduces its recurrent expenditure, infrastructural development nationwide will continue to be a pipe dream adding that “Nigeria is built on lie” because the indices by which we plan are false.

He averred that statistics of the nation’s population and its distribution are most likely not what they are said to be.

“In this struggle for this national cake, everybody is putting pressure on the federal system so recurrent expenditure has grown from less that 50 percent of the total GDP to nearly 80 or 90 percent,” he said.

Speaking on the state of infrastructure and development since the nation gained independence; he said “if we are going to make an assessment across board, I think it would be fair to say that we have not reached the level of infrastructural development that we could have reached, given where we started from”.

“There was a time actually in this country people had steady supply of electricity and good roads” Although they were not wide and there was no population pressure.

“What any sensible government should do would have been to plan well ahead for population explosion”

The problem now is a lot of these facilities are now overstretched and no sooner do we create new ones, they are instantly over stretched, he added.

In terms of social infrastructure, Mr Etomi said “we’ve become a much wiser people” adding that “everywhere you go in the world, they will tell you that if there is any set of Negroids who are self-confident, who know what they want, it’s Nigerians”.

Citing the entertainment industry he said the youths are doing well adding that “in terms of social development, we’ve done phenomenally well.”

Reiterating the opinion that Nigerians do not have a maintenance culture, Mr Etomi attributed the collapse of the nation’s infrastructure to a lack of ‘forward planning’.

“Forward planning is also not our strength even though we have had several development plans”

He also blamed lack of continuity in government administrations for the break down in infrastructure as new governments fail to continue with what the older government started.

Economist Calls On National Assembly To Cut Down Its Budget

An economist, Gabriel Idahosa has said that it is possible for the nation’s capital expenditures to dominate 50 percent of its budget only if the National Assembly takes the lead by cutting down on its budget.  

Speaking on the 2014/2016 Medium Term Expenditure Framework and Fiscal Strategy on Channels Television’s Business Morning, Mr Idahosa highlighted the significance of the programme, adding that the plan will allow the policy makers to “be on the same page” and “have a three year view of where policy direction is moving”.

The 2014/2016 Medium Term Expenditure Framework and Fiscal Strategy is a new plan by the government to have a three year framework guiding its budget.

Mr Idahosa explained that what the government has done for the past seven years is rather than do a yearly budget. However, the new plan will produce a three year framework around which fiscal policies including exchange, level of capital expenditure, recurrent expenditure, will be created.

“The framework enables everyone involved (National Assembly, federal, state and local governments) to have a view of what’s going to happen over that 3 year period and see the connection between each of the budgets for each of these three years”.

Speaking on the way the budget and how recurrent expenditures gulps 70 percent, Mr Idahosa said that  the government is still struggling to move more of our budget to capital expenditure and away from the dominance or a recurrent expenditure.

He expressed hope that the recurrent expenditures of the nation would take 50 percent of the budget and 50 percent for capital expenditures.

However, he was quick to stress that it would only be possible if the government, particularly the National Assembly, expressed strong political will and is ready to lead by example.

“It requires a very strong political will. It requires also some amount of sacrifice by various arms of government starting (of course) with the National Assembly.

The National Assembly has to really tell Nigerians at some point that they are there to serve the people. They want to show example. They want to cut down on their own budget and tell the rest of government to cut down” the way they have done.

Senate faults 2013 budget as N971 billion is allotted for petroleum subsidy

The 2013 Budget on Monday passed second reading in the Senate but the lawmakers faulted the budget expressing concern that funds appropriated for capital expenditure would not encourage growth.

Leading the debate on the budget, Senate leader, Victor Ndoma-Egba said the 2013 budget makes provisions for the sum of N971 billion for petroleum subsidy.

The plenary session lasted several hours as lawmakers took their time to debate the 2013 budget as some of the lawmakers noted that the proposed budget is not offering Nigerians anything dramatically different.

The 2013 budget of N4.92 trillion is made up of N591.76 billion for debt service, N2.41 trillion for recurrent expenditure and N1.54 trillion for capital expenditure.

The lawmakers faulted the allocation for recurrent expenditure and debt servicing.

Some other lawmakers also flawed the allocations for what they consider to be critical sectors of the economy while some expressed dissatisfaction with the manner in which the SURE-P program has been managed.

Meanwhile, some lawmaker’s grievance still lies with the level of implementation of the 2012 budget.

Jonathan submits 2013-2015 expenditure framework to Senate

President Goodluck Jonathan on Wednesday forwarded a 2013-2015 medium –term expenditure framework and fiscal strategy paper to the Senate.

The president in the document disclosed that the share of recurrent spending in aggregate expenditure is set to further reduce from 71.47 percent in 2012 to 68.7 percent in 2013 while capital expenditure as a share of aggregate spending is set to increase from 28.53 percent in 2012 to 31.3 percent in 2013.

He said that in line with the policy of consolidation, the fiscal deficit is expected to continue on a declining path from 2.85 percent of GDP in 2012 to 2.17 percent in 2013.

According to the president, the federal government will sustain its efforts to increase revenue as well as that of capital spending in total expenditure, reduce the fiscal deficit and the corresponding borrowing requirement to a more sustainable level.

He further said that government intends to further strengthen fiscal consolidation by scaling back it’s spending and creating a prosperous environment for a private sector led growth.

In furtherance of this, it stated that government would rationalize the large number of agencies based on the recommendations of the Oronsaye committee.

President Jonathan noted that in the light of the huge amount paid on petroleum subsidy in 2011, the government will streamline the management of the subsidy scheme by strengthening the audit and verification process.

He further said that in line with the oil-price based fiscal rule, a cautious oil benchmark price of $75 per barrel has been chosen for 2013-2015 period while oil production of 2.53 mbpd, 2.61 mbpd and 2.65 mbpd will be adopted for the 2013, 2014 and 2015 fiscal years respectively.