Kogi Govt. Proposes N146 billion “, Budget Of Accelerated Result”, for 2022 fiscal year.

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Idris Ahmed, Lokoja.

Kogi State Governor, Alhaji Yahaya Bello, has presented a budget of N145.8 billion for the 2022 fiscal year to the state House of Assembly on Thursday for consideration and approval.

Kogi State Governor, Alhaji Yahaya Bello performing the official presentation of budget of accelerated result before the State House of Assembly on Thursday.
Kogi State Governor, Alhaji Yahaya Bello performing the official presentation of budget of accelerated result before the State House of Assembly on Thursday.

The budget tagged, ‘’Budget of accelerated result”, has the recurrent expenditure of N90.1 billion representing 61.79 per cent, while capital expenditure of N55.7 billion representing N38.1 per cent.

He explained that the total estimated revenue for the recurrent expenditure of the budget N96.7 billion consisting of N23.2 billion which will be realised from internally generated sources, while N49.5 billion comes from the federation account.

The governor also stated that a total of N19.6 billion is expected from Valued Added Tax (VAT) with N100 million coming from excess crude and N1 billion 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.”

He however saim, if the Transfer Surplus of N6,640,715,100 is added to the amount, the state shall have N55,744,781,662 as a fund available for capital to aid development projects.

The Governor, hoped said that the key target for the 2022 fiscal year will ensure the actualization of the development priorities of the government as articulated in the development plan of the state and respective sector Implementation plans (SIPS).

The 2022 budget proposal, includes, maintaining a favourable proportion of Capital to Recurrent expenditure, completing all ongoing projects and adding new projects in areas of critical needs, expanding revenue base so as to reduce over-dependence on allocation from federation accounts

Bello disclosed that the state will be maintaining a sustainable debt position that can reduce the state domestic debt profile, by providing a conducive environment for investors and donor agencies to operate in the state, adding that the fiscal strategy of the Government is anchored on the ongoing Public Financial Management Reform (PFM).

“Over the period 2022 – 2024, the State Government fiscal policy will aim at Improving the efficiency and effectiveness of spending. to gain greater control of the wage bill”, the Governor intimated.

He assured the direct capital expenditure on critical infrastructure as Roads, Housing, Education and Health in addition to equally important thematic areas such as Job creation, Youth engagement, infrastructure and even utilities and public sector and pension reforms.

The Governor, said the state is poised to boost 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 macro economic stability and sustainable debt.

Earlier in his speech, the Speaker, Kogi State House of Assembly, Prince Mathew Kolawole, called for synergy between legislature and the executive to ensure effective and efficient supervision in the implementation process of the 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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