Bello targets N55.7 billion capital expenditure as he presents N145.8billion budget estimate for 2022

The Kogi State Governor, Alhaji Yahaya Bello, has earmarked N55.7 billion capital expenditure, representing 38.1 percent of the total N145.8billion 2022 budget proposal he presented to the Kogi State House of Assembly for consideration, Thursday October 28.

Our Kog State Correspondent reports that while presenting the budget tagged “Budget of Accelerated Result", Governor Yahaya Bello, explained the budget was divided into the recurrent expenditure of N90.1 billion, representing N61.79 percent and capital expenditure of N55.7 billion.

Governor Bello, said the total estimated recurrent revenue of the budget was N 96.7 billion, consisting of N 23.2 billion, which will be realized from internal sources and  N49.5 billion, expected to come from the federation account.

According to him, a total of N19.6 billion revenue is expected from Value-Added Tax, VAT, N100 million from excess crude and N1billion from exchange difference.

“Recurrent Revenue for the year 2020 stands at N96,792,006,352. Out of the above figure, the estimated personnel cost for the period is N45,119,725,532, whereas N45,031,565,719 is Overhead Costs, thereby giving N90,151,291,251 as a total recurrent expenditure for the year 2022.

"From the foregoing, we have a total estimated Transfer Surplus of N6,640,715,100 as Capital Development Fund. The estimated Capital Receipt is N49,104,066,562 comprising Capital receipts analysis by economic, Aids and Grants. However, if the Transfer Surplus of N6,640,715,100 is added to this amount, we shall have N55,744,781,662 as fund available for capital development projects.

“The key target for the 2022 fiscal year is to ensure the actualization of the development priorities of the government as articulated in the State Development Plan and respective Sector Implementation Plans (SIPS).

“Other target of the 2022 budget as itemized by Governor Bello includes, maintaining a favourable proportion of Capital to Recurrent expenditure, completing all on-going projects and adding new projects in areas of critical need, expanding revenue generation so as to reduce over dependence on federal allocation, maintaining a sustainable debt position thereby reducing the state domestic debt profile, providing a conducive environment for investors and donor Agencies to operate in the state, and enhancing greater transparency, accountability and proper public expenditure management.

“The fiscal strategy of Government is anchored on the on-going Public Financial Manager Reform, PFM”.

The statement added: “Over the period 2022-2024 the State Government fiscal policy will aim to: Improve the efficiency and effectiveness of spending. Gain greater control of the wage bill. 

Direct capital expenditure to critical infrastructure in Roads, Housing, Education and Health in addition to equally important thematic areas such as Job creation, Youth engagement, infrastructure and utilities and public sector and pension reforms. Boosting revenue receipts by identifying and blocking revenue leakages alongside a deliberate programme of gradual fiscal consolidation directed at achieving a level of public spending consistent with macroeconomic stability and sustainable debt".

The Speaker, Kogi State House of Assembly, Prince Mathew Kolawole, called for synergy between legislators and the executive, to ensure effective and efficient supervision in the implementation process of budget.

"Permit me, Your Excellency and my Distinguished Colleagues to say without mincing words that budgets have always been well conceived but the major area of challenge is the implementation. As co-managers of the economy and drivers of development, the Executive and the Legislature are responsible and accountable for performance", he added.

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