Kaduna's N46b Budget of Hope

By

Sam Adzegeh, Kaduna Bureau

Monday, November 08, 2004

Ahmed Makarfi, governor of Kaduna State plans to hasten development of the state through the N46 billion 2005 budget

The Kaduna State government plans to spend about N46.2 billion naira in 2005. The figure is N6.5 billion higher than the state's budget estimates for last year, which stood at N39.6 billion naira. The 2005 figure also represents an increase of 16.40 percent over last year's estimates.

Ahmed Makarfi, governor of Kaduna State announced the figures while presenting the 2005 budget proposal to the state house of assembly on Tuesday October 26. Makarfi explained that the increase was made possible by the increased cost of crude oil on the international market and the impending introduction of a new revenue allocation. These, coupled with fall-outs from the ongoing economic reforms, were sure to increase funds available to the state government.

Of the budgeted amount, the state expects to generate about N41 billion from the Federation account while N4.6 billion is expected as internally generated revenue. Curiously, while the funds expected from the federation account represent an increase of N5.9 billion over last year's figures, the funds expected to be generated internally over next year witnessed a decrease of over one billion naira over last year's figures. Makarfi, however, explained that government had in 2004 over-estimated its revenue capabilities in some areas. He described the 2005 figures as "more realistic".

Of the revenue expected from the statutory allocation, the governor said the state expects to draw N2.5 billion from the state's share of the excess crude funds, which he said is 50 percent of the total amount due the state as at September this year.

A breakdown in the expenditure profile of the 2005 budget shows a capital expenditure of N26.4b and a recurrent expenditure of N20.0 billion. A sectoral breakdown shows an allocation of N16 billion to the economic sub-sector, which has the highest allocation under capital expenditure. The sub-sector comprises agriculture, transport, power as well as commerce and finance. Transport takes the lion's share of N13 billion under the sub-sector with agriculture taking N1.2 billion.

Other allocations under capital expenditure include social sector, N4.5 billion; regional development N2.3 billion; and general administration N3.6 billion.

Of the N20 billion recurrent expenditure, N9 billion is allocated to personnel costs; N7 billion to overhead costs while other sub-sectors like consolidated revenue charges, public debt charges and local government joint council have a collective total of N4 billion.

The governor also said the state government was working on the introduction of its own economic reform programme fashioned after the federal government's NEEDS initiative. To be known as Kaduna State Economic Empowerment and Developmental Strategy, KADSEEDS, the programme is aimed at "hastening development of the state and improving the quality of life of the people."