The N174 billion 2017 budget has been tagged “Budget of New Direction” by the Bello administration.
The N174 billion 2017 budget has been tagged “Budget of New Direction” by the Bello administration.
Read the governor’s full speech at the budget presentation below:
I am grateful to the Almighty God for this opportunity to present the Kogi State Budget proposal for the year 2017 to this Honourable House today. This is a historic occasion because it is the first budget proposal I am presenting to you since I assumed office on 27 January, 2016.
I recall again the divine interventions which made possible my mandate as the 4th Executive Governor of Kogi State, and I am, as usual, deeply humbled before God. Along with this humility comes a burning sense of responsibility and an unwavering commitment to accomplish everything that God intended for Kogi State when He called me into leadership.
May I use this opportunity to thank this Honourable House and all the good people of Kogi State for the support we have received since we assumed office. Even today, Honourable Members had to specially convene for the purpose of accommodating us for this critical event. This support ensures that whatever achievements we have recorded is a Joint Venture between the 3 Arms of this Government, and the people themselves.
Mr. Speaker and Honourable Members of the Kogi State House of Assembly, you will recall that on January 27,2016 at my swearing-in as the Governor of our dear state, I clearly identified the driving passion of this government in my Inaugural Address thus: “My administration shall exist for the sole purpose of serving the superseding interests of the people of Kogi State to the very best of its capabilities”.
This brief sentence encapsulates our creed and stated objective in this Administration. It is the core philosophy of our New Direction Agenda, and it influences our every action. Shortly after we assumed Office, and in order to further sharpen our focus, the Administration engaged consultants to fashion our campaign promises into actionable work-plans for reinventing the fortunes of Kogi State and her people.
This multi-disciplinary team of consultants came to be known as The New Direction Blueprint Team as they traversed the 21 Local Government Areas of the state meeting the people at the very grassroots. They developed a New Direction Blueprint for us which is a direct prescription by the people detailing exactly what they want from from Government.
The New Direction Blueprint is a definitive roadmap for accelerated socio-economic development of our state in all its constituencies. The New Direction Agenda is the Specific Purpose Vehicle for its actualisation. Both reflect our collective aspirations for the building of a new Kogi State. Honourable members, this budget proposal before you today has been carefully prepared to meet this aspiration.
Dave Ramsey, the successful American investor once said, 'A budget is telling your money where to go, instead of wondering where it went.' Thus, we were careful to place great premium on the need for prudent management of available resources, in full consideration of the present economic realities in the state, and the nation.
On a more technical level, we made sure this budget was prepared in conformity with the terms of Multi-Year Budget Framework and Fiscal Strategy Paper (FSP). We have made a realistic and reasonable projection of our revenue and expenditure to avoid bogus and unattainable budgetary figures. Our aim is to match our expenditure commitments with available financial resources.
Distinguished ladies and gentlemen, bearing in mind the atrocious leadership which has bedeviled Kogi State in the past, the parlous state in which we met our people and state upon assumption of Office, the urgent need to turn around the fortunes of Kogi State as well as the applicable budgeting factors and perspectives mentioned above, we are pleased to announce that our proposed Budget for 2017 is dubbed the BUDGET OF NEW DIRECTION.
It is my fervent belief that the proposed BUDGET OF NEW DIRECTION is clearly indicative of our fair, sincere and frank assessment of the amount the State can generate on her own as Internally Generated Revenue in addition to what she can most likely obtain from the Federation Account and sundry other sources.
Given the earlier indices espoused, the proposed 2017 Budget is significantly higher than that of 2016 on account of the frantic effort by my Administration towards increase IGR, and enshrine Transparency, Accountability, Fairness and Discipline in the fiscal processes of the state.
Furthermore, all Ministries, Extra-Ministerial Departments and Agencies (MDAs) in the State are henceforth expected to cite IPSAS codes on the vote of charge in all requests for release of fund.
Honourable Members, this 2017 Budget Proposal was designed to make for better policy formulation, fiscal planning, budget analysis, accountability, routine financial management and international comparisons. In fact, so confident are we of its indices that it will be available on the internet for easy access and scrutiny from anywhere in the world.
Our aim in publicizing this 2017 Budget Proposal as stated is not so we can show off, but to alert the world that we are serious about our fiscal management processes in Kogi State and verifiably compliant with international best practices in budgeting. This presupposes that we have made it both realistic and scientifically populated. It also satisfies a condition precedent for attracting foreign investors to the State.
Implementation of this Budget will accelerate the rate at which we can build physical infrastructure and develop human capital in our state and deploy them. It will help us scale up our expenditures in Health, Education, Infrastructure and Utilities, Job Creation and Youth Engagement, Public Service and Pension Reforms.
Other areas that this Budget is designed to stimulate with equal importance include Agriculture, Water Resources, Environment (Waste Management and Sanitation), Housing and Support for Women and Youth Empowerment, Security of lives and properties, etc.
REVIEW OF 2016 BUDGET PERFORMANCE
Mr Speaker and the Honourable Members, you will recall that the total approved Budget for year 2016 was N99,998,674,261 out of which the Recurrent Revenue was N63,127,700,000 and capital receipts was N36,870,974,261.
Out of N63,127,700,000 total recurrent revenue approved for the year 2016, N54,956,909,602 was collected as at end of November 2016 representing 87.05% performance.
A total of N56,281,981,318 was approved for recurrent expenditure in year 2016, however N36,870,410,490 was spent as at 30 November 2016 representing 65.51% performance.
Out of N36,870,974,261 in total Capital Receipts approved for the year 2016, only N10,148,024,902 was collected as at end of November 2016 representing 27.52% performance.
A total sum of N47,316,692,943 was approved as capital expenditure for year 2016, however the actual expenditure as at November, 2016 ending stood at N26,543,714,398 representing 56.09% performance.
Some of the projects/programmes carried out in the year under review include:
Renovation of Government House Buildings and Eleven other Offices.
Purchase of Assorted Vehicles for both security and office use.
Provision of Assorted Security Equipment for security Agents in the State
Provision of Health infrastructural facilities to Hospitals
Maintenance of Existing Roads in the State through the Kogi Road Maintenance Agency (KOGROMA).
On-going Construction of Otokiti – Ganaja by-pass multi-lane carriage way.
On-going Construction of Ogaminana Ebogogo Ipaku- Kuroko junction.
On-going Construction of Obehira-Okengwe/Ihima Road.
On-going Construction of Agassa-Upogoro-Okene Road.
Complete Renovation of State House of Assembly Complex.
Provision of Agricultural inputs to Farmers in the State.
On-going Construction of Anyigba-Ajaka-Umomi-Idah Roads.
On-going Construction of Ankpa Township Roads.
Construction of Kogi State Revenue House.
Asphalt overlay of Ejuku-Ijowa-Jege-Ifeolukotun Road.
Kogi State Secretariat Complex internal road network.
Kogi State High Court Complex internal road network.
Details of other projects/programmes embarked upon during the period under review will be given by the Honourable Commissioner, Ministry of Budget and Planning in due course.
REVIEW OF 2017 BUDGET OF NEW DIRECTION
Mr. Speaker, Distinguished Honourable Members, I hereby present the 2017 Budget, titled 'Budget of NEW DIRECTION. As already noted this budget was prepared in line with Domesticated National Chart of Account, Medium Term Expenditure Framework (MTEF)/ Multi-Year Budget Framework (MYBF) which outlines key initiatives, assumptions and what is expected to be achieved by key spending Ministries, Departments and Agencies (MDAs) in the State.
The budget has an estimated outlay of N174,851,544,523. The total budget outlay of N174,851,544,523 is divided into Recurrent expenditure of N58,531,404,254 representing 33.47% and capital expenditure of N116,320,140,269 resenting 66.53%. This is further shown in the table below:
The Recurrent and Capital Expenditure in sectorial outlay is given in the following sectors:
Law and Justice
The preparation of this budget was guided by the harmonization of MDAs’ policy thrusts in line with New Direction Blueprint and actual appropriation to ensure that we have a Budget that meets the aspiration of the majority of the people in 2017.
BUDGET POLICY STATEMENT
The fiscal strategy of Government is anchored on the on-going Public Financial Management Reform (PFM). Over the period 2017-2019 the State Government fiscal policy will be directed at:
improving the efficiency and effectiveness of spending;
achieving a better balance between capital and recurrent expenditure;
gaining greater control of the wage bill;
directing capital expenditure on critical infrastructure with special emphasis on the 5 thematic areas in The New Direction Blueprint, viz: Education, Health, Job Creation and Youth Engagement, Infrastructure and Utilities and Public Sector and Pension Reforms;
boosting revenue receipts by identifying and blocking revenue leakages; and
gradual fiscal consolidation in order to achieve a level of public spending consistent with macroeconomic stability and sustainable debt.
BUDGET OBJECTIVES AND TARGETS
The specific fiscal objective of Kogi State is effective allocation of scarce resources to identified critical programmes and projects, with the following major targets:
To complete on-going projects and incrementally add new projects in the critical areas of need;
To continue to expand the State’s revenue base in the area of Internally Generated Revenue (IGR);
To enhance greater transparency and proper accountability in the State’s public expenditure management;
To produce a conducive environment for investors and Donor Agencies to operate in the State; and
To reduce the Domestic Debt Profile of Kogi State.
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 modernized Government Accounts.
Mr Speaker and Honourable Members of the Kogi State House of Assembly, Distinguished Guests, Ladies and Gentlemen, I now have the singular pleasure of formally presenting the Kogi State Year 2017 Draft Budget for consideration and approval.
The total Budget package for year 2017 is N174,851,544,523 (One Hundred and Seventy Four Billion, Eight Hundred and Fifty One Million, Five Hundred and Forty Four Thousand, Five Hundred and Twenty Three Naira) Only as against N99,998,674,261 (Ninety Nine Billion, Nine Hundred and Ninety Eight Million, Six Hundred and Seventy Four Thousand, Two Hundred and Sixty One Naira) Only approved for year 2016. This is an increase of N74,852,870,262 (Seventy Four Billion, Eight Hundred and Fifty Two Million, Two Hundred and Sixty Two Naira) or an increase of 74.85% compared with 2016 Approved Budget.
This Honourable House is therefore invited to:
We have 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.
Fund available for recurrent expenditure in year 2017 stands at N81,666,312,024. Of the above, estimated personnel cost for the period is N32,734,234,264 whereas N25,797,169,990 is overhead Costs thereby giving total recurrent expenditure for the year 2017 to be N58,531,404,254.
From above therefore, we have a total estimated Transfer Surplus of N23,134,907,770 as Capital Development Fund.
The estimated Capital Receipt is N93,185,232,499 comprising N63,185,232,499 of Capital receipt analysis by economic, N30,000,000,000 as Aids and Grants. However, if the Transfer Surplus of N23,134,907,770 is added to this amount, we shall have N116,320,140,269 as fund available for capital development projects.
Total estimated capital expenditure therefore stands at N116,320,140,269.
In summary, our total estimated revenue (i.e recurrent revenue and capital receipts) stands at N174,851,544,523 for the year 2017, making total estimated expenditure (i.e Recurrent and Capital) stands at N174,851,544,523 for the year 2017 thereby making our 2017 Budget a balanced budget.
Details of allocations to MDAs and highlights of Major activities relating to said allocations will be given by the Honourable Commissioner for Budget and Planning subsequently.
Total estimated revenue (Recurrent Revenue and Capital Receipts) of N174,851,544,523.
Total estimated expenditure (Recurrent and Capital) of N174,851,544,523.
A balanced budget of N174,851,544,523 for 2017 fiscal year.
Honourable Speaker and Honourable Members of this distinguished House, Guests, Ladies and Gentlemen, I hereby submit the foregoing, and the 2017 Draft Budget for your deliberation and approval.
I wish everyone of you a very Merry Christmas and a peaceful, prosperous and fulfilling New Year in advance. God bless the Kogi State House of Assembly! God bless Kogi State! God bless the Federal Republic of Nigeria! I thank you all.