The Honourable Speaker,
Other Principal Officers and Honorable Members,
Distinguished Ladies and Gentlemen,
Assalamu Alaikum, Warahamatullahi Ta’ala Wabarakatuhu
It is my pleasure to address this Honourable House today on the occasion of the presentation of the 2018 Appropriation Bills containing the Proposed Estimates of the State Government and the 27 Local Government Councils. I would like to begin by acknowledging the solidarity and continued cooperation of the legislative arms in supporting our efforts for economic sustainability and improving the lot of the common man despite the harsh fiscal environment which is gradually easing for the better.
- An example of this, was the unanimous passage about two months ago of a Supplementary Appropriation which enabled us to fast-track the implementation of several projects some of which would soon be commissioned. For these, I express my sincere appreciation and look forward to greater cohesion in our common objective of being responsive to the yearnings and aspirations of our people. I remain confident that the existing team spirit between the legislative and executive arms would continue to flourish in the interest of our dear State.
- Before we delve into the summary of the 2018 budget, I would like to do a brief recap on the implementation of the 2017 budget and how that consolidated some of the major initiatives and interventions we undertook since we assumed the mantle of leadership in the State. It is important to see how our focus and prioritization of a people centric expenditure profile has begun to pay off and how this links up with the proposed 2018 estimates Implementation of the 2017 Budget.
- In 2016 we implemented a “Budget of Change and Sustainable Development” which evolved into the 2017 “Budget of Economic Diversification and Self-Sufficiency”. Both of these budgets apart from identifying and working on peculiar economic issues in Jigawa State, also aligned with the efforts of the Federal Government in trying to steer the country out of recession. This trend will continue in 2018 to achieve synergy and realism in our short to medium term plans and objectives, as we realize that we cannot operate in a vacuum and have not yet attained the kind of fiscal self-sufficiency to isolate ourselves from the effects of national policies and initiatives.
- I believe Honorable Members are well-informed of the progress we have made across various sectors through the routine oversight functions of the various house committees, so I will restrict my 2017 budget synopsis to sectoral performance and outcomes which has been a resounding success for which you all share in the glory and should be extremely proud of.
- The sum of N129.87 billion was originally appropriated for the 2017 Fiscal Year which was followed-up with a Supplementary Appropriation of N12.1 billion. The latter was in respect of receipt of N7.1 billion from the Paris Club Refunds 2 and the drawdown of N5.0 billion Commercial Agriculture Credit Facility approved by the House. While performance varied amongst the various revenue components, taking into account actual revenue receipt at the end of November, it is projected that the total revenue during the entire year would be almost N113.8 billion which is about 88% of the total income under the 2017 Appropriation. Even though this is slightly below the approved estimates, considering the prevailing circumstances, this is not a bad performance at all. This performance was largely facilitated by the full draw-down of budget support facility, capitalized transfers to the capital development fund from 2016 stabilization and treasury balances, improvements in internal revenue generation as well as the impressive draw-downs for some of the external loans and grants approved in the budget.
- Total actual expenditure projected to the end of the year would be about N103.9 billion representing about 80% of the total approved estimates. This performance is satisfactory by any standard especially when compared against overall expenditure performance of about 61% during the same period last year. Performance across the two major expenditure components – recurrent and capital expenditure – is provided as follows:
(i) Recurrent Expenditure – About N61.5 billion was earmarked for recurrent expenditure during the 2017 Fiscal Year. Total actual expenditure projected to the end of the year amounted to about N55.89 billion equivalent to over 94% of the approved estimates. Out of this amount, almost N37.34 billion was on the payment of personnel cost, which when compared against the approved estimates, is as much as 96%. Our commitment to pay staff salaries and allowances as and when due has never faltered including the optional 5% Leave Grant bonus. To date, Jigawa State Government does not have any outstanding payment arrears on both state and local government staff salaries, pensions and gratuities. It is noteworthy that by the end of the year, there would be a net increase of about 2,500 staff on the State payroll largely consisting of teachers and various categories of health personnel. This is in our effort to ensure that manpower shortages in critical areas are gradually attended to. As regards overhead cost, actual expenditure projected to year end, would be slightly above N19.8 billion representing almost 84% of the approved estimates. Major cost centers included operations and maintenance of water supply in urban centers and small towns, urban street lights; payment of internal and external scholarships, institutional feeding in schools, hospitals and social-welfare institutions; school and health facilities maintenance; and a host of other public service delivery requirements.
(ii) Capital Development – N67.486 billion was appropriated for capital development during the 2017 Fiscal Year. Expenditure records indicate that, by the end of the year, about N47.15 billion would be paid on capital expenditure payments representing about 70% performance as against 45% recorded last year.
- a) The Economic Sector – Budgetary allocations meant to deliver our objectives of generating economic growth and economic diversification, economic empowerment, job and wealth creation, are provided under the economic sector. Thus, close to half of the capital investments in 2017 were in this critical sector equivalent to about N30.8 billion. Actual expenditure projected in this sector would be about N25.2 billion equivalent to about 82% by the end of the year. Consistent with our objectives, major spending in this sector during the year were largely in the Roads & Transport Development, Agriculture and Economic Empowerment. Some specifics are provided as follows:
- b) Road Development – Our commitment to complete inherited projects as well as initiate several new ones during the year resulted in actual road expenditure of almost N21 billion. Cumulatively, expenditure on roads since we assumed leadership is about N40 billion. We inherited 42 road project contracts covering a total distance of about 717 kilometres including regional, townships and rural feeder roads with contractual liabilities of over N57.9 billion. So far, 11 out 15 regional roads , 4 out of 7 feeder roads, 7 out 20 township roads in Local Government headquarters have been completed; In addition, while four of the six new regional roads we have awarded have also been completed, most of the newly awarded feeder roads are at various stages of completion. Very soon we hope to commission the Gagarawa – Bosuwa Road, Tasheguwa – Guri Road, and Maigatari Township Roads; Download Full Version