Tag: Budget proposal

  • Campaign group carpets Agbaje over education budget proposal

    A group, Campaign for Integrity in Governance (CIG), has described the proposal of Lagos State Peoples Democratic Party (PDP) governorship candidate, Mr Jimi Agbaje, to spend 50 per cent of the state’s annual budget on education as laughable and a sign of his ignorance about how to run a government.

    In a statement yesterday by its President Rasaq Olokooba, CIG noted that Agbaje’s proposal confirmed the widespread notion that Lagos, as the commercial nerve centre of Nigeria, does not need a greenhorn and an inexperienced person to govern it.

    Read also: Concerns over Reps’ PenCom probe

    “Mr. Agbaje has clearly demonstrated his poor judgment and incompetence on fiscal matter and in running a local government, let alone a state like Lagos with over 20 million population. It is fiscally impossible for any government anywhere in the world to spend half of its annual budget on a single line item.

    Lagosians should ask Mr. Agbaje what will happen to other sectors, like health, waste management, security, environment, transportation, among others, if education alone gulps 50 per cent of the budget.

     

  • Senate receives report on 2018 Budget today

    As plenary resumes on Tuesday, the Senate is set to receive the report on the 2018 Budget proposal.

    This is coming six months after the Budget was presented by President Muhammadu Buhari in November 2017.

    Mr Olu Onemola, Special Assistant on New Media to the President of the Senate, took to his twitter handle @OneMolaOlu to share a picture of the Order Papre for Tuesday which showed that the draft report will be laid on the floor of the Senate.

    The 2018 Budget has been on the front burner in recent times as many people have blamed the National for purposely delaying the budget as using it as a tool against the Executive.

    However, the National Assembly had maintained that the delays were due to the Ministries, Departments and Agencies of government (MDAs) who have failed to submit their details within the stipulated time.

    The President of the Senate and head of the National Assembly, Dr Bukola Saraki had assured that the Budget will be treated with the uttermost urgency which it deserves.

    Read Also: 2018 budget: Senate, Reps, request N2bn more for Tourism sector

    Below is the breakdown of the 2018 Budget.

    Budget size: N8.612 trillion (16 % higher than 2017 estimates)

    Assumptions, projections
    ==================
    • Benchmark crude oil price-US$45 per barrel
    • Oil production estimate – 2.3 million barrels per day
    • Exchange rate – N305/US$ for 2018
    • Real GDP growth of 3.5 per cent
    • Inflation Rate of 12.4 per cent

    Expenditure Estimates
    ================
    The proposed aggregate expenditure of N 8.612 trillion (16 per cent above 2017 budget estimate)
    will comprise
    • Recurrent Costs of N3.494 trillion
    • Debt Service of N2.014 trillion
    • Statutory Transfers of about N456 billion
    • Sinking Fund of N220 billion (to retire maturing bond to local contractors)
    • Capital Expenditure of N2.428 trillion (excluding the capital component of statutory transfers).

    Recurrent Expenditure
    =================
    A substantial part of the recurrent cost proposal for 2018 is for the payment of salaries and overheads in key ministries providing critical public services such as:
    • N510.87 billion for Interior
    • N435.01 billion for Education
    • N422.43 billion for Defence
    • N269.34 billion for Health

    Capital Expenditure
    ===============
    Key capital spending allocations in the 2018 Budget include:
    • Power, Works and Housing: N555.88 billion
    • Transportation: N263.10 billion
    • Special Intervention Programmes: N150.00 billion
    • Defence: N145.00 billion
    • Agriculture and Rural Development N118.98 billion
    • Water Resources: N95.11 billion
    • Industry, Trade and Investment: N82.92 billion
    • Interior: N63.26 billion
    • Education N61.73 billion
    • Universal Basic Education Commission: N109.06 billion
    • Health: N71.11 billion
    • Federal Capital Territory: N40.30 billion
    • Zonal Intervention Projects N100.00 billion
    • North East Intervention Fund N45.00 billion
    • Niger Delta Ministry: N53.89 billion
    • Niger Delta Development Commission: N71.20 billion.

    Key projects and programmes to be implemented in 2018:
    =========================================
    • N9.8 billion for the Mambilla hydro power project, including N8.5 billion as counterpart
    funding
    • N12 billion counterpart funding for earmarked transmission lines and substations
    • N35.41 billion for the National Housing Programme
    • N10.00 billion for the 2nd Niger Bridge
    • About N300 billion for the construction and rehabilitation of strategic roads

    Regional Spending Priorities for Peace, Security and Development
    ==============================================
    • N65 billion for the Presidential Amnesty Programme has been retained in the 2018 Budget
    • Capital provision for the Ministry of Niger Delta increased to N53.89 billion from the N34.20 billion provided in 2017
    • Completion of East-West Road, with a provision of about N17.32 billion in 2018

     

    (NAN)

  • Akeredolu sends N169.720b budget proposal to Ondo Assembly

    Akeredolu sends N169.720b budget proposal to Ondo Assembly

    Ondo State Governor Oluwarotimi Akeredolu (SAN) yesterday forwarded this year’s budget proposal to the House of Assembly for approval.

    The Assembly is expected to deliberate on the proposal, which is the first from the Akeredolu administration.

    It was learnt that after deliberations, the Assembly will invite the Ministries, Departments and Agencies (MDAs) to defend their budgets before the lawmaker pass it into law.

    Details of the budget were sketchy last night, but it was gathered that the budget’s total is N169,720,580,000.

    The development was a new dimension to budget presentation in the state.

    Successive administrations, through their governors, usually presented the budgets personally to the Assembly for onward passage after deliberations on the floor of the House.

     

     

  • Rigours of passing Lagos golden jubilee budget proposal

    The hallowed chambers of the Lagos State House of Assembly, LSHA, and its gallery was packed full of people on Tuesday, 29 November, 2016.

    Members of the public had thronged the LSHA to witness the presentation of the 2017 Appropriation Bill, which to the layman means Budget Proposal. Budget proposals are detailed accounts of expenditure and receipts expected by the government in a fiscal year.

    The huge presence of members of the public at the event cannot be underestimated. Members of the public are usually very interested in the annual budget of the state in particular and of the country at large. This is understandable. The budget is not only the detailed explanation of revenue and expenditure of the government in a year, it is also the detailed report of projects and programmes vis a vis infrastructure and social development to be embarked on by the government in a particular year, hence the public interest in the matter.

    The Lagos State Governor, Mr Akinwunmi Ambode, to confirm the importance of the occasion, was brisk and direct to the point in his presentation of the budget proposal before the House members. He appropriately tagged it “Budget of Golden Jubilee” in reference to the celebration of the 50th anniversary of the creation of Lagos State in 2017.

    Ambode presented a total budget of N812.99 billion of which capital expenditure is expected to gulp a whopping N507.82 billion and recurrent expenditure takes N305.28 billion. The fact that capital expenditure picks the lion share of the budget underscores the determination of the Ambode administration’s determination to improve and upgrade infrastructure facilities in the state as well as opening new vistas for the general improvement in the standard of living and welfare of the citizenry.

    Before leaving the venue, Ambode urged the Speaker of the House, Rt. Hon. Mudashiru Ajayi Obasa, and other members of the House to expedite action on the budget proposal so that his administration could get to work and deliver the needed dividends of democracy to the good people of the state.

    Obasa, in his response, had praised Ambode for his administration’s sterling performance in lifting the standard of living of Lagosians.

    On the budget, Obasa assured the governor of the lawmakers’ determination to expedite action on the budget proposal. “It’s our collective determination that the budget is passed on time so that we give our governor the legal instrument to work and put in projects, programmes and measures aimed at improving and enhancing the standard of living and welfare of Lagosians,” the Speaker stated.

    However, the Speaker did not fail to add that “while we are all desirous of expediting action on the budget proposal, we will not fail to perform our duty of critical scrutiny and analysis of the budget. Therefore, while assuring Your Excellency and entire Lagosians of the speedy passage of the budget, we will be careful and thorough in scrutinising the budget and we will not be found wanting in performing our oversight duty on the budget.”

    With this statement, the House set to work on the budget proposal. The House Committee on Budget and Economic Planning led by an experienced third term lawmaker, Emmanuel Rotimi Olowo from Somolu State Constituency 1, was saddled with the main job of scrutinising the various budget provisions of all the Ministries, Departments and Agencies (MDAs) in the state, which are over 150 in number. It was a huge assignment but the committee members were more than prepared and ready to sacrifice their time and energy to ensure that the budget to be passed has gone through the necessary due process.

    Apart from the Budget and Economic Planning Committee members, chairmen and members of other standing committees of the House also set aside all other official and personal engagements to ensure that the Budget of Golden Jubilee is properly worked on.

    Before encountering the Budget and Economic Planning Committee, MDAs must first pass through the committee which oversees them. Suffice to add that getting the approval of their overseeing committees does not mean that the MDAs have been given clean bill of health because they still have to pass through the main Budget and Economic Planning Committee.

    For the MDAs, it was indeed a hectic and testing time. A commissioner told this writer that he and his team went through hectic questioning for hours before his ministry’s budget provision was approved. “It was no child’s play. These people (lawmakers) were equal to the task and it was obvious that they knew what they were doing. From the sub-committee level to the main Budget and Economic Planning, the determination and commitment of the lawmakers to ensuring due process was never in doubt,” the Commissioner told this writer.

    A day before the 2017 budget was passed, Rt. Hon. Obasa and his colleagues suspended their new year holiday and worked for hours to dot the I’s and cross the T’s.

    On Tuesday, January 3, 2017, when the Budget of Golden Jubilee was read for the third time, it was not passed as a matter of course. Members still engaged in robust debate on sectoral provisions in the budget with Budget Committee Chairman, Olowo, still having to go through barrage of questions and several observations by his colleagues. One of such debates was whether or not Lagos Television and Radio Lagos should continue to collect grants from the state government when they all have potential to generate and stand on their own. The Budget Committee had recommended that the state Commissioner for Information and Strategy, Steve Ayorinde, engage an external auditor to audit the accounts of the agencies. The Chairman of the Committee overseeing the agencies, Tunde Braimoh, with his inside knowledge of activities of the agencies, had put up a spirited argument on why the subventions for the agencies should be retained.

    Olowo explained that his committee worked on the analysis of revenues generated by the agencies provided in their budget proposals, hence the committee’s decision to recommend the audit to know whether or not the agencies deserved subvention from the state government as from 2018.

    Eventually, it was the committee’s recommendation that was adopted by the House. It was indeed a very eye-opening budget scrutinising exercise for the lawmakers and Lagosians will be the ultimate beneficiaries when the state government starts operating the budget.

     

    • Musbau Razak is the Chief Press Secretary to the Speaker of the Lagos State House of Assembly, Rt. Hon. Mudashiru Ajayi Obasa

     

  • Bauchi governor presents 2017 budget to Assembly

    Bauchi governor presents 2017 budget to Assembly

    The 2017 budget proposal of N145.45 billion was on Wednesday presented to the State House of Assembly by the Bauchi State governor, Alhaji Mohammed Abubakar.

    Christened “Budget of Sustainable Development”, the estimate is made up of recurrent expenditure of N58.85 billion and capital expenditure of N86.60 billion.

    He said about 60 percent of the expected revenue would be expended on capital projects as the government intended fast-tracking its efforts in providing infrastructure to the people of the state in the coming year.

    He said other areas to be given priority in the incoming year included Health, Agriculture, Education and Water Supply sectors as well as Youth and Women Empowerment.

    Abubakar explained that considering the current national and global economic recession, transparency and accountability would be enforced in all fiscal transactions.

    He recounted the economic challenges faced in the previous years that forced the government into taking measures such as reducing the number of ministries, verification of civil servants and the placing of an embargo on employment, among others.

    According to him, the government will continue to introduce policies that will help boost internally-generated revenue and also cut the cost of administration.

    “In spite of the challenges, we are determined to move the state forward,” he assured and called on the people of the state to contribute their quota towards achieving the set goal.

    The governor also urged the State Assembly to expedite action on the passage of the budget to enable its implementation to commence in earnest.

  • Okowa presents N270.91b 2017  budget proposal

    Okowa presents N270.91b 2017 budget proposal

    Delta State Governior Ifeanyi Okowa yesterday presented a N270.91 billion budget proposal for 2017 to the House of Assembly for consideration.

    Presenting the proposal, tagged: Budget of Fiscal Consolidation and Steady Progress, Okowa said N151.9 billion was earmarked for recurrent expenditure while N119 billion was for capital expenditure.

    The governor noted that the 2017 appropriation showed a slight increase of N2.7 billion over this year’s approved budget of N268.1 billion.

    Okowa said the main sources of the budget included the Internally Generated Revenue (IGR), statutory allocation, Value Added Tax (VAT) and other capital receipts.

    The governor said the state was projecting N70.1 billion as IGR in 2017, adding that the amount was lower than the 2016 budget by N5.2 billion.

    Okowa said: “In line with the state’s fiscal strategy forecasts, N148.9 billion of the projected revenue for 2017 fiscal year is expected to come from the statutory allocation. This amount is slightly more than the N137.9 billion projected for the 2016 fiscal year by N10 billion.

    “This optimistic forecast for 2017 is based on expected improvement in the fiscal and financial discipline of the Federal Government and its peace efforts in Niger Delta to tackle pipeline bombing.

    “It is assumed that the current reforms by the Federal Government, especially full disclosure of all revenues in line with the International Public Sector Accounting Standard (IPSAS), will help increase accruing revenues to the Federation Account.”

    A breakdown of the budget showed that the economic sector has the lion share of N29.4 billion, followed by the State Oil Producing Area Development Commission (DESOPADEC) with N28 billion.

  • Health minister disowns budget proposal

    Health minister disowns budget proposal

    MINISTER of Health Prof. Isaac Adewole yesterday shocked members of the Senate Committee on Health when he informed the committee that the original budget of his ministry had been largely distorted.

    He claimed that strange figures were smuggled into the budget.

    The minister’s revelation might have reinforced the Senate’s claim that the 2016 budget had been tampered with.

    The minister urged the committee to discard the budget proposal before it and await a new estimate to be re-submitted today. He assured members of the committee that the new proposal would reflect the programmes of the health sector for the year.

    Adewole’s revelation forced Chairman of the Senate Committee on Health, Senator Lanre Tejuosho, to convene a closed door session with the minister apparently to discuss the development.

    The minister told the committee that there were some health issues on which conclusions had not been made by the ministry and yet allocations were made on them without the ministry’s knowledge.

    Adewole insisted that the provisions of the budget before the National Assembly was in contrast with the priorities of the health sector as contained in the original budget it prepared and submitted to the budget office.

    He noted that some of the votes earmarked by the ministry for some activities had been re-distributed while some important areas in the sector had been excluded.

    He said: “In the revised budget as re-submitted, N15.7 billion for capital allocation has been moved to other areas. Some allocations made are not in keeping with our priorities. There is nothing allocated to public health and family health. Over the last two years, nothing has been done on HIV…

    “We have to look into the details of the budget and re-submit it to the committee. This was not what we submitted. We’ll submit another one. We don’t want anything foreign to creep into that budget. What we submitted is not there. We have not reached that stage and we find the money there.”

    The committee chairman noted that given the submission of the minister, the budget before the committee was not the proposal of the Health Ministry.

    He added that it would be out of place to work on a budget that had already been disowned by the minister.

    He said:  “Honourable minister, we need to have an executive session. You said about this budget that public health is not there. Obviously, the budget we are looking at now is not your own.”

    Adewole responded: “Yes, it’s not. We’ll submit the revised document tomorrow (today). It will be an updated version of what you have.”

    The minister also said State House Clinic to which N3.9 billion had been allocated in the budget at the expense of other hospitals put together which got far less allocations, is not under the supervision of the Ministry of Health.

    He explained that the clinic is under the Presidency.

    Adewole said the figure might not have been the original allocation to the clinic by State House, noting that the original allocation might have been inflated by the same forces, which, he said, had distorted his ministry’s original estimates.

     

    Tejuosho noted that since the minister said that State House Clinic was not under the watch of the Health Ministry, it also implied that the Health Committee’s oversight function did not extend to the clinic.

    He added that it is the responsibility of the Special Duties’ Committee to engage the State House on the budget for the clinic.

    The minister allayed the fears of Nigerians about Zika virus that is ravaging some countries.

    He noted that the virus had been in the country since 1954, but had been unable to harm citizens because Nigerians had developed strong resistance to it.

    The minister said the virus should be ignored.

     

     

     

  • Ahmed submits  N124.5b budget proposal

    Ahmed submits N124.5b budget proposal

    Kwara State Governor Abdulfatah Ahmed yesterday presented a budget proposal of N124.5 billion to the House of Assembly.

    The ‘Budget of Expansion for Inclusive Prosperity’ dwells on job creation and economic growth.

    The governor said the budget represents an increase of N28.1 billion over this year’s.

    Ahmed said: “We intend to achieve the objectives of this budget through large-scale infrastructural development that builds on existing development, creates direct jobs, empowers small business owners, triggers enhanced commerce and supports industry.

    “Government will establish the Kwara Infrastructure Development Fund to implement a modulated approach in meeting these infrastructure requirements.

    “Within three years, government intends to bridge a third of the identified deficit through rapid development.

    “Furthermore, government will, in the first quarter of next year, create 3,500 jobs and midwife 2,000 youth entrepreneurs through training and access to N200million in affordable revolving credit.

    “Additional details of these new interventions, which also cut across sports, agriculture, energy, health, education, water supply and ICT as well as the funding framework, will be provided at the appropriate time.”

    The budget is made up of Recurrent Expenditure of N48.5 billion, which represents 39 per cent while the Public Debt Servicing is N17.2 billion, which represents 14 per cent.

    The Capital Expenditure is N58.7 billion, representing 47 per cent.

    Of the total projected revenue, the expected Internally Generated Revenue (IGR) is N16.9 billion while the Capital receipts and Aid and Grants is N22.3 billion.

    The statutory allocation from the Federation Account is estimated at N44 billion while the expected Excess Crude Account receipt is estimated at N3.1 billion.

    The expected revenue from Value Added Tax (VAT) is estimated at N8.5 billion.

    Ahmed added: “The other anticipated source of revenue for funding the 2014 budget is from a bond of N30 billion to be sourced from the capital market and repaid by 2019.”

  • Reps want September 30 deadline for budget proposal

    Reps want September 30 deadline for budget proposal

     

    Members of the House of Representatives Committee on Legislative Budget and Research have called for an amendment of section 81 of the 1999 constitution to make it mandatory for the president to submit budget proposals by September 30, to ensure early passage by the National Assembly.

    At the end of a strategic session on Monday in Calabar, Cross River State, the Chairman of the Committee, Mr. Opeyemi Bamidele, said it was imperative to give a deadline of September 30 so as to allow for early passage.

    The amendment, among others will be contained in the proposed National Assembly Budget and Research Office (NABRO) Bill which is facilitated by the Policy and Legal Centre in collaboration with the House committee and supported by the British Department for International Development.

    However, Bamidele said, “We have our Constitution in section 81 that says that Mr. President in not later than the last day of the current year must present to the National Assembly the budget proposal for the next fiscal year. So, in other words if Mr. President does not present the budget until December 31, he has not committed any offence.

    “If you send the proposal by December, you have a situation where the National Assembly would not be able to pass it until March or April and what kind of budget are you going to start implementing from May? This partly explains why we do not have adequate budget performance in the country.”

    He said the amendment, among others, would help address the issue of inadequate budget performance as currently experienced in the country.

    “The Bill seeks to put in place a framework where from the very beginning when budget is passed to the end, there will be proper monitoring and greater probity and accountability on the part of all those who are implementing this budget and their beneficiaries of such budget. Part of such responsibilities would ensure a quarterly report on budget performance,” Bamidele said.

    In the communiqué issued at the end of the session, participants, including members of the civil society organisations, observed that the NABRO Bill has become imperative in order for the legislative branch of government to effectively discharge its budgetary responsibility.

    Executive Secretary of PLAC, Mr. Clement Nwankwo, said the benefits of NABRO would eliminate executive information monopoly, simplify budget complexities as well as promote transparency and enhance credibility of the budget process.

    They resolved to ensure the passage of the NABRO bill within the current legislative year.

     

  • Uduaghan presents 2013 budget proposal

    Uduaghan presents 2013 budget proposal

    Delta State Governor, Dr. Emmanuel Uduaghan, on Friday, presented a budget proposal of N398.31 billion for the 2013 fiscal year.

    The budget comprises N145.94 billion or 36.64 per cent for recurrent expenditure and N252.37 billion or 63.36 per cent for capital expenditure.

    The 2013 budget proposal shows a decrease of N38.9 billion or 8.9 per cent when compared to the 2012 approved budget of N437.21 billion.

    The main sources of funds for the 2013 budget are internally generated revenue of N61, 440,624,172 or 15.43 per cent while statutory allocation is N198, 513,285,148 representing 49.84 per cent.

    VAT receipts amounted to N11, 441,860,370 or 2.87 per cent, while other receipts total N126, 921,344,146 amounting 31.86 per cent.

    The total recurrent expenditure estimates for 2013 is N145.94 billion and this is made up of personnel costs of N57.66 billion or 39.79 per cent and overhead costs of N49.20 billion or 33.71 per cent.

    The Consolidated Revenue Fund Charges has a proposed sum ofN39.07 billion or26.78 per cent. On the whole, the recurrent proposal for 2013 is lower by N34.90 billion or 19.30 per cent when compare with the sum of N180.84 billion approved for 2012.