AbdulRazaq presents N162bn 2020 budget to Kwara Assembly

Gov. AbdulRahman AbdulRazaq of Kwara on Wednesday presented a total of N162, 060, 661,985 budget estimates for the 2020 fiscal year to the State House of Assembly.

AbdulRazaq, while presenting the budget estimates before the 24 members of the state Assembly in Ilorin, said the budget made provisions for critical infrastructure and human capital development.

The 2020 budget proposal tagged: “Budget of Reconstruction and Reformation” would focus on rebuilding the ruins of the past while reforming the future of our people.

The governor said the 2020 budget proposal of N162billion was higher than N157billion of the outgoing year.

AbdulRazaq said that Capital expenditure would gulp N85, 408, 043,601 or 53 per cent of the total budget while Recurrent expenditure took N76, 652,618,384 or 47 per cent of the budget.

“Basically, we are presenting a budget estimate of N162billion for 2020, up from N157billion budget of the outgoing year.

“For this year, we propose 47 per cent recurrent expenditure and 53 per cent capital expenditure in a deliberate attempt to invest in the future and grow the economy through critical infrastructure and human capital development.

“One unique thing is that this budget is having an opening balance of N7billion or 4.3 per cent of the budget proposal, that we have saved in the past seven months,” the Governor said.

He said the 53 per cent capital expenditure would cover road construction and rehabilitation, rehabilitation and re-equipment of schools and hospitals, rehabilitation of court rooms, and completion of a 500-seater hall building at the House of Assembly.

According to the governor, the broad objective of 2020 Budget was to reposition the socioeconomic activities of the State owing to the past neglect across various sectors of the economy.

It was reported that Education sector took the lion share of the budget with 612,956,019 or 19.5 per cent, followed by Health with N29,052, 255, 436 or 17.9 per cent of the total budget.

“The Education sector will continue to receive high priority attention of this administration through the provision of facilities for conducive atmosphere for teaching and learning and preparing our students for a more focused and productive future.

“Priority attention will also be given to rehabilitation of dilapidated classrooms in Public schools across all the three senatorial districts in the state during the 2020 financial year.

“In addition, capacity building of teachers will be accorded high priority for efficiency of service delivery.

“This administration will continue to support the State owned Tertiary Institutions through accreditation and Infrastructural Development,” he added.

AbdulRazaq said a total of N11,471,343,473 was allocated to State Bursary and Scholarship programmes to assist needy families and students.

The governor said the 2020 budget estimates were predicted on the national oil price benchmark of $57 per barrel; oil production estimate of 2.18m barrels per day; official exchange rate of N305 per US dollar; Gross Domestic rate of 2.93 per cent; and inflation rate of 10.81 per cent.

According to the governor, the 2020 budget would be sourced from the expected federal allocation of N48,943,215,564, or 30.2 per cent of the total revenue.

He also said Valued Added Tax (VAT) receipt of N16,430,807,482, or 10.1 per cent of the total revenue would fund the 2020 budget as well as other sundry revenue valued at N3, 838,863,505, or 2.3.per cent of revenue.

AbdulRazaq said N39, 783,008,301 was expected from the Internally Generated Revenue which would account for 24.5.per cent of the revenue

According to him, other sources of fund for the budget include income from other sundry internal sources valued at N193,322,646, or 0.1 per cent; capital development fund/aid and grants put at N45,871, 444,487, or 28.3 per cent; and an opening balance of N7billion or 4.3 per cent of the revenue projections.

According to the governor, there is a plan to widen the state’s tax base without imposing new tax on the people but through blocking of leakages.

AbdulRazaq commended members of the Assembly and the Kwara public for their support since he assumed office, calling for more support and sacrifice in the new year in the strategic interest of the state.