Wike Presents N550.6bn Budget Proposal for 2023

  Sule, Masari propose N148.9bn, N288bn respectively

Blessing Ibunge in Port Harcourt, Igbawase Ukumba in Lafia and Francis Sardauna in Katsina

Rivers State Governor, Nyesom Wike has presented the sum of N550, 666, 987, 238.00 to the State House of Assembly as Appropriation Bill for 2023.

Wike who titled the 2023 Appropriation Bill, as ‘Budget of Consolidation and Continuity,’ said it comprises capital and recurrent expenditure of the 2023 fiscal year.

Similarly, Nasarawa State Governor, Abdullahi Sule,  presented a budget estimate of N148.9 billion for the 2023 fiscal year to the state House of Assembly for assent, just as Governor  Aminu Bello Masari of Katsina State, became emotional while presenting a budget estimate of N288 billion for the 2023 fiscal year before the lawmakers.

Presenting the budget before State lawmakers yesterday, in Port Harcourt, Wike explained that his administration projected the sum of N350,977,495,537.00 as capital expenditure for the fiscal year 2023.

“This amount represents about 63.2 per cent of the total budget and conforms to our practice of prioritising capital expenditures over recurrent,” he said.

Under capital expenditure, Wike said the state would spend N114,264,480,208 on infrastructure, N36,999,486,717 specifically on education and N31,500,002,023 on health.

“Accordingly, the sum of N114, 264, 480, 208.00 is provided in the 2023 capital budget estimate to fund the completion of all ongoing roads and other physical infrastructural projects awarded by our administration,” he added.

In the 2023 budget proposal, Wike said his administration has also proposed a recurrent expenditure of N175, 249, 692, 497, representing about 31 per cent of the total budget for the 2023 fiscal year.

The governor explained that in 2023, the state would expend N73, 460, 278, 307 on salaries (Ministries/Departments/Parastatals), N7, 758,772,851 on new recruitment, N33,600,000,000 on monthly pensions as well as N 12,000,000,000 on gratuities/death benefits.

Speaking further, Wike said the fiscal year 2023 budget aims at delivering economic growth, additional infrastructure and prosperity for citizens.

He stated that while no new projects may be awarded, except where considered very important, the administration shall galvanise efforts and resources to complete all ongoing projects so that the new government would start on a clean slate, unencumbered.

The governor said in 2021 and 2022, the state government introduced several fiscal measures, including a moratorium on external borrowing to achieve economic growth, fiscal discipline and financial consolidation.

These measures, according to him, significantly blocked revenue leakages, improved the state’s capacity for internal revenue generation and prevented unsustainable deficit financing.

“We have, therefore, resolved to continue with the existing fiscal measures for the year 2023.  This means that there would be no increase in tax rates. No new taxes will also be introduced.

“However, we will continue to intensify our drive to significantly improve IGR by expanding opportunities for more investments, industrialisation and efficient tax collection,” he added.

The governor disclosed that the state remains determined to reduce its dependence on statutory federal allocations to finance its budget and development. To this end, he urged other sister states to join Rivers in the struggle to secure the right to impose and collect VAT at the sub-national level.

Reviewing the 2022 budget performance, governor Wike narrated that the approved total budget of the State was N420, 485,053,736.00.

He disclosed that by the end of October 2022, total revenue receipts by the state stood at N321, 250,781,228.91, which was about 70 per cent performance, while total receipts from internally generated revenue (IGR) was N112.099 billion.

“The shortfall in IGR is attributed to our inability to collect the projected proceeds from value-added tax following the stay of execution ordered by the Court of Appeal, which we have appealed to the Supreme Court,” he added.

“We are therefore poised to use the 2023 budget to deliver more transformative infrastructure and other strategic projects and services and move our dear State closer to the point of self-sustainability,” he added.

Meanwhile,   Governor Sule of Nasarawa state christened the budget estimate as ‘Budget of Economic Consolidation and Continuity’, disclosing that recurrent expenditure was to gulp a total sum of N90.6 billion, representing 60.84 percent of the total budget size.

This was even as he also told the state lawmakers that the sum of N58.3 billion, representing 39.16 percent of the total budget size was set aside for capital expenditure in the 2023 fiscal year.

He continued: “The Speaker and members of the Assembly, I am delighted to lay before you a total budget size of N148,958,122,525.05 for the 2023 fiscal year.”

The budget’s sectoral highlights as presented by the governor showed that education has the highest allocation of N37.87 billion, followed by health with N18.61 billion, while the women affairs and social development had the least allocation of N1.02 billion.

The governor assured the lawmakers that his administration would continue to anchor on transparency, accountability and rule of law for the overall development of the state.

This was even as he pledged to implement the budget estimate to the fullest if finally passed into law by the state House of Assembly for speedy development across the state.

Receiving the 2023 budget estimate from the governor, the Speaker, Hon Ibrahim Balarabe Abdullahi, assured the governor of speedy passage of the budget by the lawmakers for development to thrive in the state.

Abdullahi, therefore, commended the state governor for presenting the 2023 budget proposal timely.

“I wish to note with profound sense of joy the excellent working relationship that has prevailed between the executive and the legislature since you (Sule) assume office in 2019,” the Assembly speaker said.

On his part,  Masari of Katsina  became emotional while presenting a budget estimate of N288 billion for the 2023 fiscal year before the lawmakers.

 The 2023 budget christened: ‘Budget of Transition’, which has the capital expenditure of N184 billion and N104 billion for recurrent expenditure, is the last budget of Masari’s administration.

Masari, who could not control his emotion while presenting the budget, said it was designed to complete ongoing projects and initiate other capital projects that could be completed within the lifespan of his administration.

He explained that in the 2023 budget, the environment sector would gulp N31.7 billion; water resources N29.2 billion;health N23.9 billion; work N20.9 billion; education N18.6 billion, and agriculture N13.6 billion.

The governor said: “The total budget for the 2023 fiscal year is in the sum of N288,633,257,963.00 with 63.77 per cent capital expenditure and 36.23 per cent recurrent expenditure.

“In aggregate terms, the 2023 budget is lower than that of the 2022 revised budget by N34,662,962,998.00. The total amount projected to finance the 2023 budget is the sum of N184,052,771,966.72 which comprises N62,592,051,331.00 as internally generated revenues from the state board of internal revenue and other MDAs.

“The revenue receivable through the federation account is estimated at the sum of N119,021,024,430.89 with an opening balance of N12,062,370,089.11.

“It is important to note that the 2023 recurrent revenue has increased by 7.33 per cent over that of the 2022 revised budget. Similarly, the capital expenditure in the 2023 Budget has decreased by 20.92 per cent due to drop in capital receipts.”

Responding, the Speaker of the Assembly, Hon. Tasi’u Musa Maigari, assured the governor of speedy passage of the 2023 budget proposal.