Ahmed proposes N135.2bn for 2017 fiscal year

Having suffered acute financial constraints in 2016 fiscal year as a result of volatile earnings and dwindling allocations from the federation account, the Kwara State government has shifted focus from federal allocations in the year 2017 fiscal estimates proposed for the state.

Presenting a 2017 fiscal proposal of N135.2 billion before Kwara State House of Assembly yesterday, Governor Abdulfatah Ahmed placed more premium on internally-generated revenue and capital development fund receipts and grants expected from the state development partners and donors for the year.

The 2017 Appropriation Bill, which is christened “Budget of Introspection and Sustenance,” is anchored on current economic realities, intends to be aggressive on internally-generated revenue, blocking of financial leakages through strict implementation of treasury single account and cost of governance reduction and prudent utilisation of available resources.

Giving the breakdown of the 2017 Appropriation Bill, which stands at N135.2 billion, Governor Ahmed proposes to expend N70, 980, 667, 592 as capital expenditure, representing 52.5 percent of the total budget with a view to investing more in infrastructure, agriculture, education, health, among other critical sectors of the state’s economy as part of measures to stimulate socio-economic development.

He also budgeted a total sum of N57, 469, 632, 895 for Recurrent Expenditure which represents 42.5% of the total budget size and a sum of N60, 798, 228, 975 was earmarked to finance repayment of funds made available for infrastructure development by Kwara state capital development fund partners under Public Debt Service which represents 5% of the total budget size.

Speaking on the sources of funds to finance the budget, Governor Ahmed proposed N21, 034, 973, 045, representing 21.5% from internally-generated revenue; a sum of N52, 451, 041, 323 which represents 38.5% from capital development fund receipts and grants; N23, 793, 893, 175, representing 17.6% from Statutory Revenue Allocation.

Other sources of revenue for the 2017 Appropriation Bill included a proposal of 7, 479, 831, 430, representing 5.5% from Value Added Tax; N5 billion which represents 3.7% from Loan Facility from Financial Institutions; N10 billion, representing 7.4% from London and Paris Club Refund on Over Deducted Loans and N7,504,790,480 which represents 5.5% from Sundry Revenue from the Federation Accounts.

While lamenting the economic recession of the year 2016 which prevented his government from achieving a set of financial goals, the governor affirmed that in spite of these lingering challenges, “we continue to meet our obligations to the people through frugal spending, a focus on people-oriented programmes and innovations in revenue generation.

“Therefore, the main thrust of the 2017 Budget proposal is promotion of the welfare of Kwarans by enhancing infrastructure, stimulating the socio-economic environment, boosting the informal sector and, by extension, expanding job creation, diversify the production and revenue base of the State economy to deliver inclusive growth, infrastructural development, job creation and social intervention programs for the poor and vulnerable groups.

“In order to realise these program objectives, Ahmed stressed that “we have resolved to look beyond these challenging times and explore creative ways of financing our expenditure proposals for 2017.

“Therefore, we maintained the zero based budgeting approach to arrive at our projections, and based on the following assumptions as adopted by the Federal Government – Oil price benchmark of $42.5 per barrel, Oil production of 2.2 million barrels per day, Average Exchange Rate of N305/$, inflation rate of 10.28%.

“In view of these assumptions and some other parameters, the Kwara State Government is proposing to spend a total amount of N 135, 264, 529, 461 only.

This shows an increase of N23, 682, 157, 934 only over the 2016 revised appropriation and this represents 21.2% increase.”
Governor Ahmed, who said the government intended to fully exploit the economic potentials of the state, emphasized that “we are going to diligently exploit all potential sources of Internally Generated Revenue through the improvement of existing revenue line items while breaking new ground.

“This will, however, be pursued in a manner that will not inflict hardship on our people. Thus, the proposed 2017 Budget is christened “Budget of Introspection and Sustenance”. It is anchored on current economic realities and our determination to look inwards for sustained prosperity and development.

“The theme also underlines our resolve to sustain ongoing infrastructure, to expand and improve the Internally Generated Revenue base and reduce dependence on Federal Allocation, job creation among others”, he noted.