Governor AbdulRahman AbdulRazaq of Kwara State has presented a budget of N162 billion for the 2020 fiscal year to the State House of Assembly today.
A breakdown of the package showed that the budget comprises 53 percent and 47 percent for capital and recurrent expenditures respectively. “Basically, we are presenting a budget estimate of N162 billion for 2020, up from N157 billion budget of the outgoing year,” he told the lawmakers.
“For this year, we propose 47 percent recurrent expenditure and 53 percent capital expenditure in a deliberate attempt to invest in the future and grow the economy through critical infrastructure and human capital development. One unique thing is that this budget is having an opening balance of seven billion Naira, or 4.3 percent of the budget proposal, that we have saved in the past seven months,” the Governor said in a speech before the Assembly.
“Key highlights of the budget include construction of Kwara State innovation hub for information technology, large scale garment production factories, resuscitation of moribund industries, construction of new (urban and rural) roads, rehabilitation of public schools, capacity building for teachers for efficient service delivery, payment of UBEC contribution, rehabilitation of hospitals and health centres with provision of modern medical and laboratory equipment, payment of counterpart funds, and implementation of health insurance.
“We are also proposing construction of Ilorin Civic Centre (Ilorin Visual Art Centre), purchase of biometric fingerprints and reader machines for e-auditing, commencement of e-government, introduction of creative intervention fund for youth and graduates empowerment, provision of statewide irrigation scheme, agricultural mechanisation, commencement of the livestock transformation plan programme, and implementation of the Kwara State Social Investment Programme.”
In the budget, the governor stated that vehicles would be purchased for political office holders and Honourable members of the House
Government would widen the state’s tax base without imposing new tax on the people but through blocking of leakages.
“I want to call on our compatriots that while we are ready to serve them to the best of our ability and within available resources, the situation of our state is such that all hands must be on deck to make all the necessary sacrifices and stay the course in our collective efforts to build a new Kwara that works for all,” he said, adding “However, we must be clear that we cannot build a new state where things work with the same mindset and attitude that brought us to this sorry pass. I, therefore, call on us, leaders and the governed, to tighten our belt for the overall good of our state.”
The Governor baseed the package on the national oil price benchmark of $57 per barrel; oil production estimate of 2.18m barrels per day; official exchange rate of N305 per US dollar; Gross Domestic Product of 2.93 percent; and inflation rate of 10.81 per cent.
He added that the budget estimates match the exact revenue projections for the state in the fiscal year, including N48,943,215,564, or 30.2 percent of the total revenue; VAT receipt of N16,430,807,482, or 10.1 percent of the total revenue; other sundry revenue valued at N3, 838,863,505, or 2.3.percent of revenue; Internally Generated Revenue of N39, 783,008,301, or 24.5.percent of the revenue; income from other sundry internal sources valued at N193,322,646, or 0.1 percent; capital development fund/aid and grants put at N45,871, 444,487, or 28.3 percent; and an opening balance of N7billion Naira, or 4.3 percent of the revenue projections.