Bauchi Governor, Bala Abdulkadir Mohammed, on Thursday, presented the 2024 budget appropriation bill to the State House of Assembly disclising that the sum of N300,219,705,820.60.
The main focus of the 2024 budget is on projects and policies saying that Recurrent expenditures are more than N140b accounting for more than 40 percent of the budget amount, while capital expenditure is swallowing more than N170 billion accounting for 58 percent of the entire budget estimates.
Bala Abdulkadir Mohamed told the State House members that his administration has development projects where 200 kilometers of roads will be built across the state with two major flyovers in Wunti and Central markets to address congestion and significantly reduce accident rates in the city center.
The Governor also said that his administration had secured more than 60 percent of the 2023 budget and efforts would be made to ensure Bauchi residents enjoyed the dividends of democracy.
Tagged, “Budget of unification and renewal of commitment” Bala Mohammed appealed to the members of the state House of Representatives to give the budget an acceleration and rapid passage of the continuation of development.
The Governor said, “Mr Speaker, Honourable Members, the year 2024 budget which I tag “BUDGET OF CONSOLIDATION & RENEWED FOCUS”’ is prepared based on the Medium-Term Expenditure Framework (MTEF) in compliance Bauchi State Fiscal Responsibility Law (2009).”
He added that “It further complies with the National Format and Chart of Accounts, aimed at improving the quality of financial reporting in line with the International Public-Sector Accounting Standards (IPSAS).”
He added that the 2024 Budget has been predicated on the assumptions of an oil production projection of 1.78 million barrels per day; a benchmark oil price of 73.96 US dollars per barrel; an exchange rate of N700 to the US dollar; an improved level of revenue accruals into the Federation Account arising from oil subsidy removal; and an improved and efficient system of internally generated revenue collection.
The Governor added, “Government has in the course of the preparation of the Budget taken the following measures into consideration: Ensure the completion of ongoing projects and Propose new projects only on the basis of critical need and the immediate impact they would make.”
It also ensures reduction in non-essential overheads, compliance with Budget guidelines issued by the Nigerian Governors Forum to ensure peer review and comparability.
Furthermore, Compliance with debt servicing and repayment agreements in fulfillment of our obligations, target favourable sources of Capital Receipts and financing such as Aids and Grants, PPPs.
The 2024 projected revenue and expenditure are for Capital and Recurrent services during the fiscal year comprising Recurrent Expenditure of N121,341,193,343.11 or 40.4% while Capital Expenditure receives the sum of N178,878,512,477.49 or 59.6%.
“The 2024 proposed Budget is 48.2% higher than the budget I presented at this House for 2023. The increase is attributable to the increased revenue arising from the subsidy removal and the upward inflationary trends associated with the depreciating state of the local currency,” he added.
The Governor explained, “This implies an increase in prices upon which our projects and programmes will be implemented. The adoption of this conservative approach is to ensure that projects and programmes captured are appropriately costed.”
According to him, “The process of the preparation of the budget has been all inclusive. Budget Public Hearings were conducted in the three Senatorial Zones where inputs from Stakeholders were elicited and incorporated into the Budget proposal.”
“Mr Speaker, Honourable members, the details of the Budget are as follows: Recurrent Estimates
Recurrent Revenue Estimates with an Opening Balance of the sum of N14,472,988,092.29 while the sum of N196,117,152,647.51 is estimated as Recurrent Revenue,” he added.
According to him, “This is made up of the following: Internally Generated Revenue N37,029,075,592.51, Statutory/Other FAAC Allocation 114,084,525,864.62, VAT N45,003,551,190.38 totaling the sum of N196,117,152,647.51. Recurrent Expenditure Estimates is a total sum of N121,341,193,343.11 earmarked for Recurrent Expenditure.”
The breakdown is as follows:- Personnel Cost, N73,104,107,842.86, Overhead Cost N 121,341,193,343.11.
For capital receipts, it is projected that the State will realize Capital Receipts in the sum of N89,629,565,080.80 in the following areas: Loans (Internal & External) N50,983,704,414.25, Aids and Grants N24,018,520,052.85, Other Capital Receipts N14,627,240,713.70 totaling the sum of N89,629,565,080.80.
The Capital Expenditure has been proposed in the sum of N178,878,512,477.49 in the following sectors administrative sector N19,025,419,968.80, Economic Sector N74,907,055,058.74, law and Justice Sector N2,002,430,000.00, Regional Sector N17,460,965,081.05, Social Sector N65,768,787,368.90 totalling the sum of N178,878,512,477.49
“In concluding this presentation, I want to solicit the continuous support and cooperation of this Honourable House in our efforts towards the development of our dear State and in improving the lives of its citizens. We have no doubt made significant progress in that respect,” he added.
Bala Mohammed said, “As we get to settle into our responsibility of governance coming into the second term, I want to use this opportunity to urge our citizens to embrace our development objectives of making our State a better place for all of us.”
According to him, “We will continue to work to ensure that the prevailing peace, security and protection of lives and properties of citizens is guaranteed. Our absolute trust is, indeed, in the Almighty Allah in Whom we truly believe.”
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