Admin I Tuesday, Dec. 05, 2023
ENUGU, Nigeria – Governor Peter Mbah has presented a N521.5 billion (N521,561,386,000) budget for the 2024 fiscal year before the Enugu State House of Assembly.
The budget proposal, which he entitled “Budget of Disruptive Economic Growth” is the highest in the state’s history, comprising N414.3 billion capital expenditure and N107.2 billion recurrent expenditure.
Presenting the budget on Tuesday, Governor Mbah said: “The 2024-2026 Multi-Year Budget is named Budget of Disruptive Economic Growth. This is on account of the fact that it is structured to drive growth in a markedly different pattern than we have attempted to do hitherto.
“We are proposing a total budget of size of ₦521,561,386,000.00 for the 2024 fiscal year as against the approved revised provision of ₦224,697,899,063.00 for 2023. This represents a 132% increase from the 2023 revised budget.
“In the area of our revenues, we estimated that total recurrent revenues during 2024 will amount to ₦383,789,000,000.00 as against the approved revised provision for 2023 of ₦143,571,592,917”
Giving a breakdown of government’s expected sources of revenue, the governor said, whereas the state had an opening balance of N11 billion, it expects to rake in N252.7 billion from internally generated revenue (IGR), N60 billion from statutory revenue, N16 billion from excess crude oil revenues and others, while N44 billion would come from Value Added Tax (VAT).
On the Recurrent Expenditure and Capital Expenditure, Mbah explained: “For 2024 Fiscal Year, Recurrent Expenditure which is proposed at ₦107,227,266,000.00 is made up of N47,583,677,000 Personnel Costs, N41,804,698.000 Overhead Costs, and N17,838.891,000 Consolidated Revenue Charges.
“With the total recurrent Expenditure at ₦107,227,266,000.00, this translates to a Net Recurrent Revenue of ₦276,561,734,000.00, which is thus transferred to the Capital Development Fund.
“The total Capital Expenditure for the year 2024 is projected at ₦414,334,120,000.00 as against ₦135,715,099,693.00 for 2023 Revised Budget. The current capital expenditure estimate will be funded from the sum of ₦276,561,734,000.00 to be transferred from the Consolidated Revenue Fund, and the capital receipts of ₦137,772,386,000.00 to be realised as follows: External and Internal Aids and Grants, N27.922,386,000; Public Private Partnership, N6,100,000,000; Domestic Loans/Borrowings, N71,000,000,000; and International Loans/Borrowing Receipts, N32,750.000.000”.
On sectorial basis, the economic sector got the highest in the Capital Expenditure Distribution, which is N207.8 billion, followed by the social sector, which got N182.9 billion.
However, education got 73.6 per cent of the social sector allocation, and 33 per cent of the total budget, representing the highest in both instances.
“As I mentioned earlier, Education is a key plank in our strategy to eradicate poverty in our State. Consequently, ₦134,587,982,647.78 representing 73.6% of the social sector has been earmarked to help reinvent education in our state by developing the new smart schools, which I mentioned earlier, as well as repositioning our senior secondary and tertiary institutions by training and retraining teachers and updating our curricula across all levels of education to infuse technology and technology appreciation and skills.
“This capital expenditure on education combined with the planned recurrent expenditure in the sector will bring our total spending on education to 33% of the total budget”, the governor stated.
Courtesy Dan Nwomeh
