Jan – Dec Budget: Lagos leads 36 States, presents N1.69trn 2023 appropriation bill
…States fasten presentation to Assemblies
…Okowa, Ayade present N561.8bn, N330bn budgets
…Southern states ahead, as Kaduna leads in North
…Consolidation,transition top agenda of govs
By Our Correspondents
To meet up the January to December budget calendar, States in the Federation have begun to fasten presentation of their appropriation bills to their respective Assemblies.
On Thursday, three States including Lagos, Delta and Cross River have their State Governors presenting appropriation bills for the proposed 2023 State budgets to their respective Assemblies.
The development trailed Governor Gboyega Oyetola of Osun State’s move who earlier submitted to the State House of Assembly a N136.3bn budget estimate for 2023, same being read on Tuesday, 25th October, on the floor of the State House of Assembly.
The 2023 budget estimate, tagged; “Budget of Consolidation” was contained in a letter from governor Gboyega received by the House on September, 29, by the Speaker.
As at Wednesday, Nigerian NewsDirect had reported the proposed budget had passed second reading on the floor of the House.
It has been observed that State Governors in their proposed budgets , presented so far, have stressed consolidation of their projects and agenda, as some seek transition, while others eye re-election.
Of the proposed budget presented to respective State Assemblies so far, Lagos appears to take the lead in budget size as Governor Babajide Sanwo-Olu on Thursday presented before the Mudashiru Obasa led State House of Assembly, a proposed budget of N1.69trn, stating the fiscal document is intended to consolidate on his administration’s achievements in the last three and a half years.
The Y2023 Budget proposal which is christened ‘Budget of Continuity’ has a total size of N1,692,670,759,894, comprising a total revenue of N1,342,670,649,640 and Deficit Financing of N350,000,000,000.
The proposed budget size is made up of recurrent expenditure of N759,958,569,792 (45 per cent) and capital expenditure of N932,712,190,102 (55 per cent).
The breakdown of the proposed budget revealed Economy N339bn (20.06 per cent); General Public Services, N308bn (18.22 per cent); Education N153bn (9.07 per cent); Health N126bn (7.42 per cent); and Loan servicing N262bn (15.51 per cent) attracting the lion share of the proposed budget.
The appropriation bill comprises total internally generated revenue and total federal transfers of total internally generated revenue (IGR) of N1,108,435,649,640 and total federal transfer of N234,235,000,000.
The proposed recurrent expenditure is N759,958,569,792, comprising of total overhead, total personnel cost and recurrent debt servicing.
The breakdown of the Total Overhead cost of N403,653,328,479 comprises Overhead of N221,957,283,661; Subvention – N93,501,258,220; Dedicated – N88,194,786,596.
Proposed for Total Personnel Cost is N247,295,312,088 and Recurrent Debt Service – N109,009,929,224.
For the Capital Expenditure, a total figure of N932,712,190,102 was proposed with a breakdown of Capital expenditure – N670,134,079,150 and Repayment – N262,578,110,952.
According to Sanwo-Olu, “the deficit financing shall consist of external and internal loans and bonds which are well within our fiscal sustainability parameters.”
The Sectoral allocation in line with Classification of Functions of Government (COFOG) as proposed include General Public Services 251,288,659,489 recurrent; 57,074,671,825 capital – 308,363,331,313 (18.22 per cent).
Public Order and Safety 39,113,852,871 recurrent; 41,717,299,048 capital; – 80,831,151,919 (4.78 per cent).
For Economic Affairs 61,544,544,167 was allocated for recurrent; 277,938,281,264 for capital; making up a total of 339,482,825,430 (20.06 per cent).
Environment has 29,055,877,309 recurrent; 36,476,278,650 capital – 65,532,155,960 (3.87 per cent).
Housing and Community Amenities has 15,068,350,599 recurrent; 52,290,292,470 capital; – 67,358,643,068 (3.98 per cent).
Health 101,876,450,316 recurrent; 23,687,149,525 capital; – 125,563,599,841 (7.42 per cent).
Recreation, Culture and Religion 15,702,002,864 recurrent; 9,228,485,741 capital – 24,930,488,605 (1.47 per cent).
For Education 111,043,871,680 was allocated for recurrent; while 42,401,446,460 for capital; – 153,445,318,140 (9.07 per cent), while for Social Protection 16,278,538,580 recurrent; and 2,301,491,229 capital; – 18,580,029,810 (1.10 per cent).
The sectoral total include 640,972,147,875 recurrent and 543,115,396,210 capital; – 1,184,087,544,085 (69.95 per cent), while statewide allocation include 118,986,421,917 recurrent; 389,596,793,892 capital – 508,583,215,809 (30.05 per cent).
For Contigency Reserve (Including Special Expenditure-Statewide and Special Expenditure-Others) 13,281,128,802 was allocated for recurrent, 58,136,706,897 for capital, with a total of 71,417,835,700 (4.22 per cent).
For Loans (Repayments, CDSA & Debt Servicing) the proposed allocation is 262,578,110,952 (15.51%).
The allocation for Personnel Cost (Servicewide and Pension) is 105,705,293,115 (6.24 per cent); Grants & Counterpart Fund 68,881,976,043 (4.07 per cent).
The allocations made up for 759,958,569,792 recurrent; 932,712,190,102 capital with a total of 1,692,670,759,894 (100 per cent).
Sanwo-Olu who presented the Year 2023 Appropriation Bill, which will be the final Budget of his administration’s first term before the 2023 general elections, said “as we work on consolidating our achievements in the last three and a half years and prepare for our party’s victory in the 2023 general elections, the 2023 Appropriation Bill has been tagged the Budget of Continuity.”
According to him, “The 2023 Appropriation Bill expresses our unwavering determination to keep serving the good people of Lagos through our T.H.E.M.E.S Development Agenda.
“We are indeed grateful for the trust reposed in us by the people, their faith in our government and their cooperation since 2019.
“As we return to the campaign trail to seek the mandate of our people for another four years, we have resolved to continue our audacious interventions in every sector of the economy, and I am confident that this Budget of Continuity will propel Lagos State to the next fiscal level,” he said.
Delta
This is just as Governor Ifeanyi Okowa of Delta State, on Thursday, also presented an appropriation bill of N561.8 billion proposed budget for 2023 to the State House of Assembly.
The 2023 N561.8bn proposed budget, a 17 per cent increase over that of 2022, made up of N235.2bn Recurrent Expenditure, representing 42 per cent and N326.6bn Capital Expenditure, representing 58 per cent.
Okowa, while presenting the budget christened ‘Budget of seamless and stable transition’, in Asaba, the State capital, said the budget would be mainly funded through Internally Generated Revenue.
“With the sustenance of all the measures put in place to overhaul the revenue infrastructure, the IGR for 2023 is expected to improve.
“The signs are obvious with a performance of 89 per cent of the budget in the first nine months of the current year. We shall continue to sustain and improve on the measures taken thus far, which culminated in the increased revenue profile,” he said.
Cross River
This is just as his counterpart, Governor Ben Ayade of Cross River State presented before the State House of Assembly, on Thursday, a budget proposal of N330bn for the 2023 fiscal year.
Governor Ayade on the floor of the Assembly, while presenting the fiscal document size of N330billion, said the 2023 budget is a citizen’s budget focused mainly on the people.
He said the budget christened ‘Budget of Quantum Infinitum’, was targeted at the citizens as well as to complete and commission all his projects.
According to him, the budget which will focus on deeper agro-industrialisation will also see to the finalisation of all unfinished projects.
The breakdown of the budget has N130bn for recurrent expenditure which is 39 per cent of the budget and N200bn for capital expenditure, which is 61 per cent of the budget.
According to Ayade, the recurrent expenditure would accommodate the payment of salaries, gratuities and pensions and also cushion the effects of hardship and poverty in the State.
While N130bn representing 39 per cent will take care of salaries, gratuity amongst other, the 200bn which represents 61 per cent intends to kinetically crystalise all outstanding projects, according to him.
“For capital expenditure, we have budgeted a sum of N200 billion which represent 61 per cent of the budget estimate.
“The capital expenditure will provide for the completion of all the projects that are yet to be completed in the state.
“I wish to call on the Federal Government to support this budget and help us to complete our projects. Since the loss of Bakassi, the state has continued to suffer economic hardship,” he lamented.
Speaking further, he bemoaned labour deficits with the need for massive recruitment, lamenting that by early 2023 about 85 per cent of the work force will retire.
“There is need for massive recruitment now, so that the new people can understudy those who are leaving.
“By early next year, about 85 per cent of the workforce in the cross River State civil service will be leaving , so there is an urgent need for massive recruitment.
“I have been able to create an Independent economy under my watch that needs to be sustained.”
Kaduna leads in North
On the side of the North, Kaduna remains on the prompt side as the Kaduna State Governor, Nasir El-Rufai had earlier 18th October, presented to the State House of Assembly, a proposed Budget of over N370.33bn for the year 2023.
He stated while presenting the budget to the State House of Assembly in Kaduna, that there was an increase in the budget proposal when compared to the 2021 and 2022 budgets, adding a number of factors informed the increase.
El-rufai while presenting the proposed 2023 budget size of N370bn, christened the “Budget of Continuous Growth and Development”, with N242.6bn capital expenditure and N124.7bn as recurrent expenditure said the 2023 budget will give more priority to education, security, agriculture, and also the provision of social infrastructure that would enhance the living conditions of the citizens of the state.
More presentation to toll up in coming weeks
Early September, Bayelsa State House of Assembly had passed the 2022-2025 Medium Term Expenditure.Framework and Fiscal Strategy Paper (MTEF/FSP) ahead of the expected presentation of the 2023 Appropriation Bill by Governor Douye Diri.
According to the legislators, passage of the 2022-2025 MTEF/FSP was sequel to the consideration and deliberation on the various macro and micro economic indices, including the various sources of revenue to finance the expected budget proposals.
Recall October 7, President Muhammadu Buhari had presented a N20.51 trillion 2023 appropriation bill to the National Assembly.
The National Assembly had approved the medium-term expenditure framework (MTEF) and fiscal strategy paper (FSP) — parameters on which the 2023 budget will be framed.
Presenting details, Buhari had said the 2023 transition budget was designed to address critical issues and lay a solid foundation for the incoming administration.
He said that based on the parameters and fiscal assumptions, the revenue generation should hit about N16.87 trillion.
The budget christened ‘Budget of Fiscal Consolidation and Transition’ has a breakdown of N744.11bn earmarked for statutory transfers; N8.27 trillion for non-debt recurrent costs, N1.1trillion for overhead costs, and N5.35 trillion for capital expenditure.
Following the mark of presentations, it is expected that more State Governors would toll the line with presentation of appropriation bills to their respective Assemblies in the coming weeks.
