Alhaji Yahaya Bello, the Governor of Kogi State, presented the state House of Assembly with the N145.8 billion budget for 2022 on Thursday.
He presented the budget, titled “Budget of Accelerated Results,” and stated that it is divided into recurrent expenditure of N90.1 billion, representing N61.79 percent, and capital expenditure of N55.7 billion, representing N38.1 percent.
The governor stated that the budget’s total estimated recurrent revenue is N96.7 billion, with N23.2 billion coming from internal sources and N49.5 billion coming from the federation account.
According to the governor, VAT is expected to generate N19.6 billion in income, with N100 million from extra crude and N1 billion from exchange differences.
“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 a fund available for capital development projects,” he stated.
He stated that the main goal for the fiscal year 2022 is to guarantee that the government’s development priorities, as expressed in the State Development Plan and corresponding Sector Implementation Plans, are realized (SIPS).
Other 2022 budget targets, according to Governor Bello, include maintaining a favorable capital-to-recurrent expenditure ratio, completing all ongoing projects and adding new projects in areas of critical need, expanding revenue generation to reduce over-dependence on federal allocation, maintaining a sustainable debt position thereby lowering the state domestic debt profile, and providing a conducive environment for investors and donor agencies to invest.
Bello also stated that the government’s budgetary approach is based on the ongoing Public Financial Manager Reform (PFM).
He said: “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.”
Earlier in his comments, Prince Mathew Kolawole, Speaker of the Kogi State House of Assembly, urged for collaboration between legislators and the government to achieve effective and efficient budget execution.
“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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