Kogi State Governor, Alhaji Yahaya Bello has presented next year’s (2020) budget estimate to the State House of Assembly tagged “Budget of Prosperity.”
The Governor who was represented at the occasion by his deputy, Chief Edward Onoja said the budget was estimate at N176,123,091,93 against N158,172,060,971 Revised Budget for year 2019, representing an increase of N17,951,030,960 or 10.19%.
He said his administration has budgeted a total estimated recurrent revenue of N92,932,509,241 consisting of N21,032,117,213 from internal sources; N50,428,800,000 as State’s share from the Federation Account; N17,500,000,000 revenues from Value Added Tax (VAT); N120,000,000 from Excess crude; N100,000,000 from exchange difference; N130,893,199 as refund from Federal Government; N2,000,000,000 from Non-Oil Revenue; N1,500,000,000 from Forex Equalisation; and N120,698,829 from Excess Bank charges.
Governor Bello said recurrent revenue for the year 2020 stands at N92,932,509,241 out of which the estimated personnel cost for the period is N32,512,241,598 whereas N46,456,887,139 is overhead costs, thereby giving N78,969,128,737 as a total recurrent expenditure for the year 2020.
“From the foregoing, we have a total estimated Transfer Surplus of N13,963,380,504 as Capital Development Fund. The estimated Capital Receipt is N83,190,582,690 comprising Capital receipts analysis by economic, Aids and Grants. Howeve, if the Transter Surplus of N13,963,380,504 is added to this amount, we shall have N97,153,963, 194 as fund available for capital development projects.
“Total estimated capital expenditure, therefore, stands at N97,153,963,194. In summary, our total estimated revenue (i.e. recurrent revenue and capital receipts)stands at N176,123,091,931 fortheyear 2020, making total estimated expenditure (i,e Recurrent and Capital) stands at N176,123,091,931 for the year 2020 making our 2020 Budget a balanced budget,” the Governor stressed.
He had explained that 2020-2022 Multi-year Budget is based on conservative projections as macro economic indicators show an uptick in global growth at 3.5% and speedy recovery on the national front from recession, and a reduction in the intlation rate, adding that as a State Government with no control over monetary policy, the state budget is the key fiscal policy tool to boosting the economy from unforeseen negative shocks.
Governor Bello also described the budget as the most important mechanism for achieving Kogi’s Development Plans and socio economic developme, hence the imperatives of a realistic and implementabl Budget going forward.
He further said the budget was premised on Zero-Based Budgeting principles talilored towards the actualization with key targets from a fiscal perspective to include; ensuring the actualization of the development priorities of the government as articulated in the State Development document.
The objectives of the budget also includes maintaining a favourable proportion of Capital to Recurrent Expenditure; to complete all on-going projects and adding new projects in the critical area of needs; to expand the state’s revenue generation capacity so as to reduce over dependence on federation allocation; maintain a sustainable debt position thereby reducing Domestic Debt profile; provide a conducive environment for investors and Donor Agencies to operate in the State; and enhance greater transparency, accountability and proper public expenditure management.
Other objectives include to ensure that products from agncultural and industrial activities have access to markets locally and internationally; to ensure gainful employment of youths and create opportunities for the development of their talents; achleve sustainabie development and promote social and economic development through culture and tourism among others.
The Governor had earlier thanked the people of the state for voting the APC in the recent November 16 governorship election and expressed gratitude to the judiciary for confirming the election of the 25 members of the state House of Assembly and then thanked members for reciprocating his gestures during their elections by ensuring they backed him in return.
He also used the occasion to highlight some of the achievements of his government as it concerns the 2019 appropriation, saying it was time to do more for the people of Kogi State in order to justify the renewal of his mandate for another term.