Kwara State Governor, Dr Abdulfatah Ahmed, has presented a 2017 budget estimate of N135, 064, 529, 461 to the State House of Assembly for consideration and approval.
The governor presented the appropriation bill tagged: “Budget of Introspection and Sustenance” to the House on Thursday.
He said the budget showed an increase of N23, 682, 157, 934 representing 21.2% over the 2016 revised budget.
According to the Gov Ahmed, the sum of N57, 479, 632, 894 representing 42.5% was earmarked as recurrent expenditure.
He also told the House that N70, 986, 667, 592 representing 52.5% of the budget went to capital expenditure, while N6, 798, 228, 975 representing 5% of the total budget is for public debt service.
Under Sectoral allocation, Ahmed said that Economic Affairs took the lion share of N35, 437, 302, 393 representing 26% of the total budget, followed by Education with a sum of N29,936,179,606 representing 22% of the total budget.
General Public Services came third with the sum of N26, 497, 822, 611 presenting 20% of the 2017 total budget.
The Governor said the 2017 budget was anchored on current economic realities and determination to look inwards for sustained prosperity and development.
“Mr Speaker, Honorable Members, the 2017 Budget proposal builds on the prevailing macroeconomic realities in the country as a result of
“We have therefore maintained a prudent approach to estimating revenues for the 2017 financial year in order to cushion the economy from possible fiscal shocks that may arise.
“Mr Speaker, Honorable Members, in formulating the 2017 Budget proposal, we maintained a zero based budgeting to arrive at our projections,” Gov Ahmed added.
According to him, the 2017 budget was based on oil price benchmark of $42.5 per barrel, oil production of 2.2 million barrels per day, average Exchange Rate of N1 to 305/$ and inflation Rate of 10.28% .
The Governor said the 2017 appropriation bill is expected to be financed through Federal Allocations to the state, Internally Generated Revenue (IGR) and Value Added Tax (VAT).
Ahmed also said the budget would be funded through Capital Development Fund Receipt/Aid and Term Loan facility from Financial Institutions.
The Governor told the House that about N23, 703, 893, 175 representing 17.6 percent of the budget would be sourced from Federation Account, while IGR would fetch N29.3 billion, representing 21.5 percent.
Gov Ahmed reassured the people of the state of the commitment of his administration to implement result oriented policies and programmes that will boost economic activities, unlock growth and create jobs in the 2017 financial year.
“All on-going capital projects under the General Public Service Sector will be accorded the highest priority to ensure their completion in 2017 financial year.
“The State government will continue to accord high premium to the wellbeing of its workers in all ramifications”, the governor said.
He stated that more qualified youths will be engaged to address staff shortage created by voluntary retirement and resignation in 2017.
Ahmed also said that attention will be given to provision of operational vehicles to all MDAs in the 2017 fiscal year.