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…N163 billion above 2016
…capital projects occupy 70%
Governor Nyesom Wike on Wednesday, December 28, 2016, presented the Rivers State’s 2017 budget of N470 billion to the State House of Assembly. It is christened the “golden jubilee budget” for accelerated development. It is apparently so called to mark 50 years of the creation of Rivers in 1967.
In 2016, the Rivers State Government had budgeted N307 billion, which makes the incoming 2017 budget higher by N163 billion or 53.1%.
A breakdown of the 2017 budget indicates that the total projected capital expenditure is N329 billion representing 70 percent of the total figure, while N141 billion or 30% is proposed for recurrent expenditure.
Governor Wike said: “Rivers State will be 50 years old next year, and to herald this historic landmark, we have christened the 2017 budget “the Golden Jubilee budget for accelerated development.”
According to the governor, “the budget is premised on the need to consolidate on our achievements for 2016 and restore the State’s economy back to a sustained growth path and expand economic opportunities for all.”
He said: the budget was underpinned by basic principles such as: “enhancing the business environment, including tackling the security challenges for the private sector to grow, expand our tax revenue base, and drive our economy through the value chain into becoming one of the largest economies in West Africa; committing a greater proportion of available resources towards infrastructure development and public works to stimulate economic growth, create employment and reduce poverty.”
Wike said, in the 2017 budget, priority attention would be given to security of lives and property; infrastructure development and maintenance; education; healthcare delivery, and empowerment.
In the 2017 budget, the sum of N77.4 billion representing nearly 40 per cent of total capital expenditures was allocated to the Ministry of Works, to accelerate the development and expansion of infrastructure throughout the State in the year.
The governor noted N30 billion was allocated to the Ministry of Education for 2017, to invest in providing educational infrastructure and improving the quality of education in the State.
The health sector got N27billion, while Women and Youth Development was allocated N1 billion for empowerment programmes. Another N12 billion was spread across the budget for women empowerment.
Governor Wike said: “As we have often stated, the days of wasting scarce public resources on frivolities or unviable social and economic programmes are over for good.
“We have demonstrated in the last 17 months that focusing on real priorities not only delivers progress but also enables us to do more with less, and we will not deviate from this position in 2017.
“Furthermore, we shall continue to encourage, support and attract private-sector investments, both local and foreign, in the diverse sectors of our economy to create well-paying jobs, reduce poverty and improve the socio-economic conditions of our people.”
Funding of the budget, according to the governor would come from revenue receipts such as the Federation Account Allocation Committee (FAAC), the 13% oil Derivation proceeds, Value Added Tax (VAT), Reimbursements, Internally Generated Revenue (IGR) and Domestic credits.
He added that the state was projecting an aggregate sum of N220 billion from FAAC, distributed as follows: N23 billion from Statutory Allocation; N102 billion from 13% mineral derivation fund; N16.6 billion from VAT; N8 billion exchange gain; N70 billion for Paris Club and other reimbursements, and N400 million naira from capital receipts.
“We are also projecting to generate an aggregate sum of N168.857 billion from the internally generated revenue (IGR).”
Explaining the drive of the 2017 budget, Governor Wike said: “In terms of sectoral allocation, the projections shows that N14.160 billion is allocated to the administrative sector; N115.245 billion is allocated to the economic sector, N125.630 billion s allocated to the social sector, while N3.050 billion is allocated to the Law and Justice sector; and N70.915 billion is allocated to special heads.
He said the unprecedented increase in the capital expenditure, once again, underscores the administration’s commitment to direct substantial resources to the critical growth sectors of our economy, including addressing infrastructure gaps to accelerate economic growth, secure the State and improve the wellbeing of the people.
In his response, Speaker of the Rivers State House of Assembly, Dabo Adams said the governor by the 2017 budget, has proven that he was committed to the development of the state; commending the governor for ensuring that the budget covers all sectors of needs in the state.
