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Bauchi State 2014 Budget: Consolidating Stewardship

| January 17, 2014 More

Governor of Bauchi State, Mallam Isa Yuguda

In this season of budget presentations, Goddy Egene reviews the budget provisions of Bauchi State, which seeks to complete on-going projects rather than initiating new ones.

Preamble
The Governor of Bauchi State, Mallam Isa Yuguda recently presented the state’s 2014 budget provisions to the House of Assembly. In the budget document, the governor emphasised that the budget will seek to complete on-going projects and programmes of his administration, while new projects and programmes will be embarked upon only where they become absolutely necessary.
The effect of such new projects must have direct impact on the economy and the lives and welfare of the people of Bauchi State.

He also pointed out that the budget will focus on our priority areas of Agriculture; Health, Education; Water supply; Youth and Women Empowerment; Poverty Alleviation and Power Generation.
The 2014 Budget, which was prepared within the Medium Term Expenditure Framework (MTEF) in compliance with the Bauchi State Fiscal Responsibility Amendment Law of 2009, is in  line with the newly adopted National Format and Chart of Accounts preparatory to the implementation of the International Public Sector Accounting Standards (IPSAS) on cash basis nationwide effective from January 2014. Thus the state is one of the early adopters of the new format.

Like the federal government,  the budget was predicated on the assumptions of an oil production of 2.388million barrels per day, a bench mark oil price of $76 per barrel, and a robust and efficient system of internally generated revenue collection.

Budget Details

Details of the budget indicate a  N133.7 billion total provisions, as against N137 billion in the previous year, representing a drop of 2.4 per cent. Recurrent expenditure accounts for N64.95 billion,  which an increase of 2.5 per cent  over the N63.35  billion in 2013.

Capital votes on the other hand dropped by 7.04 per cent from N73.99 billion in 2013 to N68.78 billion. Revenue projections were put at N155.85 billion, making the budget a surplus one. The recurrent revenue amounts to N87.2 billion, consisting N9.4 billion as internal generated revenue and N77.75 billion statutory allocations.

Capital receipts, however, account for N67.64 billion, out of which external loans account for N15.33 billion, while aids and grants take up N7.21 billion.

One thing discernible from the budget provisions is the priority given to capital projects. Though votes for capital expenditure fell from N73.99 billion in 2013 to N68.78 billion, it is larger than recurrent provisions by as much as N5 billion.

The sectoral priorities  is another interesting thing of note. With Agriculture, Health, Education, Water supply, Youth and Women Empowerment, Poverty Alleviation and Power Generation being given attention, it stands to reason that the government is committed to delivering infrastructure to the people.

The emphasis on completing on-going projects, which runs counter to the norm in the country, is quite encouraging as it will enable the people keep tab on projects and see them delivered for the utmost good.

Ensuring Implementation
Governor  Yuguda’s promise of consolidating his stewardship with this year’s budget will be felt if the various projects are duly completed and delivered to the people. The main snag, however,  will be implementation.

The challenge of budget implementation is still very high in our clime. And according to Yuguda, Bauchi  encountered a number of challenges in the implementation of the 2013 budget.

“Actual Recurrent Revenue of N51.05billion was recorded as at 30th September 2013 representing 54 per cent of the total Budgeted Recurrent Revenue of N94.54billion for the year,” he said during the 2014 budget presentation, adding that the performance of the projected Capital Receipts was seriously impaired.

“Of the N41.3billion projected for the year, only N10.25billion representing 25 per cent was realised as at 30th September 2013. This is largely attributable to the prevailing conditions which made it difficult for us to access anticipated funding from local and external borrowing sources as well as grants due to the security situation nationwide,” he said.

Conclusion
So for the people of Bauchi to reap the benefits outlined in the budget, implementation is key. The fact that only N19.36billion representing 26.58 per cent of the projected Capital Expenditure of N72.83billion in 2013 was achieved by end of the third quarter, means the governor and his team need to work harder for over 90 per cent implementation for the 2014 budget to make  any meaning for the people.

Category: Bauchi State News

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