Date: 2019-12-18

THE FULL BUDGET SPEECH FOR THE 2020 FINANCIAL YEAR, DELIVERED TO THE KWARA STATE HOUSE OF ASSEMBLY BY HIS EXCELLENCY, ABDULRAHMAN ABDULRAZAQ, THE GOVERNOR OF KWARA STATE, ON WEDNESDAY, 18TH DECEMBER, 2019

PROTOCOLS
Honourable Speaker,
Honourable members of the Kwara State House of Assembly,

I am delighted to stand before this Honourable House to present the Budget proposal for the policies and programmes of the Government of Kwara State for the 2020 financial year for consideration and approval as it forms the framework for the development of the State in the next one year and beyond.

2. I said in my inaugural address seven months ago that this administration was set to rebuild Kwara of our dream by creating an enabling environment to empower our people and make life a lot more meaningful in our communities throughout the State.

3. Honourable Speaker, let me reiterate that our people repose so much confidence in this administration. I am therefore using this platform to reassure them that this administration intends to not only meet their aspirations but to also surpass them in the delivery of good governance through harnessing of our resources and deploying same for the good of the people.

4. The 2020 Budget proposal has therefore been designed essentially to redirect funding for human capital and infrastructural development in order to enhance the well-being of our people.

5. Mr. Speaker, Honourable members, you would recall that shortly after my assumption of office, I forwarded a draft supplementary Budget proposal to you for approval in order to address perennial water crisis within the Ilorin metropolis, taking Kwarans out of its pariah status as the least performing state in the Universal Basic Education Commission (UBEC) ranking; getting contractors back to work to complete abandoned or uncompleted projects, paying counterpart funds that have changed the story of the state in health and education sectors; paying years of arrears owed to colleges of education teachers, and re-accreditation of the state’s tertiary institutions, among others. We want to completely change the story of this state and our plan revolves around just that, beginning from the Budget Review.

6. In addition, following extensive consultations with key stakeholders we have outlined priority policy strategies in water, education, health, roads and general critical infrastructure. Agriculture is also a priority and we are looking at ensuring that a lot is done in the area of agro-processing because of our comparative advantage.

7. As a first step towards the realisation of our goal, the Government has articulated workable policies, programmes, and strategies in the 2020 Budget proposal, which I now have the honour to present to this Honourable House.

THE 2020 BUDGET OUTLOOK

8. Mr Speaker, Honourable Members, owing to the past neglect across various sectors, the broad objective of 2020 Budget is to reposition the socioeconomic activities of the State to rapidly move the state forward through strategies designed to steadily bridge the huge infrastructural gap in the state and put in place relevant and pro-business policies in a bid to attract and sustain investors’ confidence for socio-economic development in the state.

To this end, the 2020 Budget is themed ‘Budget of Reconstruction and Reformation with the focus to rebuild the ruins of the past while reforming the future of our people.

9. Consequently, the 2020 Budget objectives include:

(i) Mobilisation of resources for human capital development through education, health, water supply and sanitation, women and social development and social protection.
(ii) Expansion of Revenue Generation capacity of the State through blockage of leakages for increased Revenue in order to reduce State’s dependence on the monthly Federation Allocation
(iii) Development of critical infrastructural facilities and rehabilitation of existing ones to provide a more conducive environment for private investors
(iv) Job and Wealth creation to reduce poverty and level of unemployment among our youths.

KEY UNDERLYING ASSUMPTIONS FOR 2020 BUDGET

10. Mr Speaker, Honourable members, the 2020 budget proposal is built on Zero-Based Budgeting principle to ensure prudent utilisation of our revenue. However, our projections for recurrent revenue from Federation account were based on some Macro Economic parameters as contained in the State’s 2020-2022 Medium Term Expenditure Frame Work (MTEF). These parameters include:

• Oil price benchmark of US$57 per barrel as adopted by the Federal Government;
• Oil production estimate of 2.18million barrels per day;
• Exchange Rate of ₦305 per US Dollar
• GDP Growth Rate of 2.93 per cent, and
• Inflation Rate of 10.81% per cent

11. It is essential for us to intensify our revenue generation efforts through the expansion of our revenue capacity base. Our focus on increasing revenue is not to impose new taxes or levies, but rather to expand the tax net as well as plug all loopholes for efficiency and good governance. We shall prioritise the state’s needs and address the core areas to ensure effective and efficient use of revenue.

SOURCES OF 2020 REVENUE ESTIMATE

12. The sum of One Hundred and Sixty-Two Billon, Sixty Million, Six Hundred and Sixty-One Thousand, Nine Hundred and Eighty-Five naira (N162, 060,661,985,) is estimated as the total State Government revenue in 2020 financial year which comprises the following:

(a) Statutory Allocation: This is the State’s share of collectable revenue from the Federation Account which is estimated at Forty-Eight Billion, Nine Hundred and Forty-Three million, Two Hundred and Fifteen Thousand, Five Hundred and Sixty-Four naira (N48,943,215,564) or 30.2 percent of the total revenue.
(b) Value Added Tax: The estimated VAT receipt is Sixteen Billion, Four Hundred and Thirty million, Eight Hundred and Seven Thousand, Four Hundred and Eighty-Two naira or 10.1 percent.
(c) Other Sundry Revenue: The estimated sundry revenue from the Federation Account is Three billion, Eight Hundred and Thirty-Eight million, Eight and Sixty-Three Thousand, Five Hundred and Five naira (N3, 838,863,505) or 2.3.percent.
(d) Internally Generated Revenue (IGR) – The estimated internally generated revenue is Thirty Nine billion, Seven Hundred and Eighty-Three million, Eight Thousand, Three Hundred and One naira (N39, 783,008,301) or 24.5.percent.
(e) Income from other sundry Internal sources:- This is estimated at One hundred and Ninety-Three million, Three Hundred and Twenty-Two Thousand, Six Hundred and Fourty-Six naira (N193,322,646) or 0.1 percent.
(f) Capital Development Fund/Aid and Grants:- This source is estimated at Forty-Five billion, Eight Hundred and Seventy-One million, Four Hundred and Forty-Four Thousand, Four Hundred and Eighty-Seven naira (N45,871, 444,487) or 28.3 percent.
(g) There is opening balance of Seven billion naira or 4.3 percent

PLANNED KWARA STATE GOVERNMENT 2020 EXPENDITURE

13. An aggregate expenditure of One Hundred and Sixty-Two Billon, Sixty Million, Six Hundred and Sixty-One Thousand, Nine Hundred and Eighty-Five naira (N162, 060, 661,985,) is proposed for the State Government in 2020 financial year. The expenditure estimate includes non-debt recurrent expenditure of Sixty-Eight billion, Four Hundred and Eleven million, Nine Hundred and Nine Thousand, Eight Hundred and Eleven naira, (N68,411, 909,811) or 89.2 percent. Debt services is estimated at Eight billion, Two Hundred and Forty million, Seven Hundred and Eight Thousand, Five Hundred and Seventy-Three naira (N8,240, 908, 573) or 10.7 percent, making total sum of Seventy- Six billion, Six Hundred and Fifty-Two million, Six Hundred and Eighteen Thousand, Three Hundred and Eighty-Four naira (N76,652,618,384) for recurrent expenditure which represent 47 percent of the aggregate expenditure, while a total sum of Eighty-Five billion, Four Hundred and Eighty million, Forty-Three Thousand, Six Hundred and One naira (N85, 408, 043,601) is for capital expenditure which represent 53percent of the total expenditure.

RECURRENT EXPENDITURE

14.The total recurrent expenditure for the 2020 financial year is estimated at Seventy Six billion, Six Hundred and Fifty-Two million, Six Hundred and Eighteen Thousand, Three Hundred and Eighty-Four naira (N76, 652,618,384). It includes the following components:

(i)Personnel Cost:- A total sum of Fourteen billion, Eight Hundred and Eighteen million, Nine Hundred and Fifty-Two Thousand, Eight Hundred and Thirty-Four naira (N14,818,952,834) is estimated for personnel cost which represent 19.3 percent of the aggregate recurrent expenditure.

(ii)Overhead Cost:- This includes subvention to Parastatals, Support grant as well as Tertiary Institutions’ Overhead and operational cost for the Ministries, Departments and Agencies. It is estimated at a total sum of Fourty-Three billion, Seven Hundred and One million, Two Hundred and Ninety thousand, Six Hundred and Four Thousand naira (N43, 701,290,604) or 57 percent.

(iii)Other Consolidated Revenue Fund Charges:- It is estimated at Nine billion, Eight Hundred and Ninety-One million, Six Hundred and Sixty-Six Thousand, Three Hundred Seventy- Three naira (N9,891,666,373) or 12.9 percent.

(iv)Recurrent Debt Service Charges:- Eight billion, Two Hundred and Forty million, Seven and Eight Thousand, Five Hundred and Seventy-Three naira (N8,240,708,573) or 10.7 percent.

CAPITAL EXPENDITURE

15.The total Capital Expenditure with the transfer from recurrent budget surplus is estimated at Eighty-Five billion, Four Hundred and Eighty million, Forty-Three Thousand, Six Hundred and One naira (N85, 408, 043,601) which represent 53 percent of the aggregate expenditure for the 2020 financial year. This is as against fifty-seven billion, One Hundred and Seventeen million, One Hundred and Fifty-Five Thousand, Four Hundred and Thirteen naira (N57,117,155,413) for 2019 revised budget, an increase of 49.5 percent. This increase reflects this administration’s commitment to embark on critical infrastructure development and human capital development as earlier mentioned.

16.Mr Speaker, Honourable members, the summary of the proposed 2020 recurrent and capital allocation to each sector and the percentages to the total budget size is as follows:

(i)General Public Services Thirty- Eight billion, Three Hundred and Forty million, Twenty Thousand, Seventy One naira (N38,340,020,071) or 23.7 percent of the total budget size.
(ii)Public Order and Safety:- Three billion, Seven Hundred and Ninety-Four million, Three Hundred and Ninety- Seven Thousand, One Hundred and Sixty-Five naira (N3, 794,397,165) or 2.3. percent
(iii)Economic Affairs: Forty-Nine billion, Four Hundred and Eighty-Three million, Nine Hundred and Forty-Three Thousand, Five Hundred and Seventy-Five naira (N49,483,943,575) or 30.5 percent.
(iv) Environmental Protection: Two billion, Two Hundred and Sixty-Six million, Eight Hundred and Thirty-Two Thousand, Two Hundred and Sixty naira (N2,266,832,260). or 1.9 percent
(v)Housing and Community Amenities:- Four billion, Three Hundred and Fourteen million, One Hundred and Seventy-One Thousand, One Hundred and One naira (N4,314,171,101) or 2.7 Percent
(vi)Health:- Twenty-Nine billion, Fifty-Two million, Two Hundred and Fifty-Five Thousand, Four Hundred and Thirty-Six naira (N29,052,255,436) or 17.9 Percent
(vii)Recreation, Culture and Religion Two billion, Eight Hundred and Ninety-Six million, Five hundred and Fifty-Seven thousand, Nine Hundred and Seven naira (N2,896,557,907) or 1.8 Percent
(viii)Education:- Thirty-One billion, Six Hundred and Twelve million, Nine Hundred and Fifty-Six Thousand, Nineteen naira (N31, 612,956,019) or 19.5 Percent
(ix)Social Protection:- Two Hundred and Ninety-Nine million, Five Hundred and Twenty-Eight thousand, Four Hundred and Fifty-One naira or 0.2. Percent

17.Mr Speaker, Honourable members, at this juncture I would like to highlight some sectoral policies and programmes as contained in the proposed 2020 Budget.

A.ECONOMIC AFFAIRS SECTOR:
i. Agriculture

18.The main objective of Government in this sub sector is its transformation from subsistence farming practices to commercial farming as a business through the use of modern technology to increase agricultural yield and production.

The State Government will ensure the provision of farm machineries and equipment during the 2020 financial year in order to boost food production and enhance food security. In order to create job opportunity for our teeming youths in agricultural business, government plans to cultivate some hectares of farm land in the three senatorial districts for Youth and Graduates under the Central Bank of Nigeria sponsored programme. In addition, the State Government intends to procure assorted fertilisers to ensure availability and affordability of quality fertilizers to farmers in the State. This is to increase crop production and yield in the State.
A total sum of Three billion, One Hundred and Forty-Three million, Four Hundred and Eighty-Six Thousand, Four Hundred and Seventy naira (N3, 143,486,470) is allocated for all the priority capital projects in this sub sector in 2020 financial year.

ii.Energy

19.In the 2020 financial year, the State Government will work hard to ensure improved power supply to nooks and crannies of the State. In order to realise this objective, key priority power projects will be vigorously pursued to boost socio-economic activities of the State.
A sum of Five Hundred and Twenty-six million, One Hundred and Eighty-Three Thousand, Four Hundred and Sixteen naira (N526,183,416) is earmarked for this subsector for its capital projects in 2020 financial year.

iii.Enterprise

20.Government will continue to promote and encourage strong and organised small and medium scale Industrial activities. In this regard, Government has resolved to facilitate access of Small and Medium Scale Enterprises and Cooperative groups to debenture funds in the 2020 financial year.

21.Furthermore, this administration remain committed to reduce poverty with special emphasis on various initiatives to drive economic growth and ensure equitable distribution of resources in the State. To this end, the Kwara State Social Investment Programme will provide soft loans to the tune of One billion, Five Hundred million naira to petty traders, artisans, enterprising youths, men and women to ensure trade promotion and development.

A total sum of Two billion, Nine Hundred and Twenty-Five million, One Hundred and Ninety-Six Thousand naira has been allocated to cater for the capital project activities in this sub sector in the 2020 financial year.

iv.Works and Transport
22.In the 2020 financial year, the State Government will focus attention on the provision of basic infrastructural development especially construction and rehabilitation of roads across the State that will attract investments and combat poverty at various levels.
A total sum of Fourteen billion, Fifteen million, Eighty-Three Thousand, One Hundred and Twelve naira is allocated to capital projects in this sub-sector.

B.HOUSING AND COMMUNITY AMENITIES SECTOR:-
i.Housing and Urban Development
23.The Government will continue to bridge the housing deficit gap and ensure quality, affordable and accessible housing for Kwarans through Public Private Partnership (PPP).

In line with this policy, a total sum of One Hundred and Fifty-Four million naira (N154, 000,000) has been earmarked for various capital projects in this sub-sector in 2020 financial year.

ii.Water Supply

24.This administration is fully committed to supply adequate and safe water for domestic and industrial uses as well as making water available all the year round for our urban and rural populace. In line with this policy, the State Government intends to spend a total sum of One billion, Seven Hundred and Eighteen million, Eight Hundred and Seventy-Six Thousand, Six Hundred and Two naira (N1, 718,876,602) for the expansion and maintenance of water supply infrastructure and services across the State. Government will also embark on tertiary reticulation which is the final stage of the Ilorin water supply turn-around project. This phase involves the existing 138km in the State capital and will expand water supply distribution by over 200% when completed.

25.In addition, boreholes will be provided for our rural dwellers to complement rehabilitation of waterworks in the three senatorial districts of the State.

C.EDUCATION

26.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 exercise and Infrastructural Development.
27.Furthermore, the State Bursary and Scholarship programmes will be sustained in order to assist needy families and students.
A total sum of Eleven billion, Four Hundred and Seventy-One million, Three Hundred and Forty-Three Thousand, Four Hundred and Seventy-Three naira (N11,471,343,473,) is allocated to this sector for capital projects.

D.HEALTH SECTOR:

28.Recognising the importance of quality health care delivery to the people of the State, government will not relent in its effort to embark on holistic and revolutionary approach in healthcare delivery services to the citizenry across the State in the 2020 financial year. In line with this policy, government will ensure the rehabilitation of some hospitals and healthcare centres with the provision of health/medical equipment across the three senatorial districts in the State.
A total sum of Twenty-Four billion, Sixty-Three million, Four Hundred and Sixty-Eight Thousand, Eighty-Two naira (N24, 063,468,082) has been allocated for the health sector capital projects.

E.ENVIRONMENTAL PROTECTIONS
i.Environment and Forestry
29.The problem of climate change has brought forward the need to intensify climate change mitigation and adaptation as well as forest conservation and preservation. Consequently, in the 2020 financial year, government will continue to ensure the protection of the environment through effective channelisation, dredging of ecological problem areas and de-silting of drainages to control floods and erosion. In addition mop-up of wastes along major rivers, maintenance of dump sites, fencing/barricade of major rivers to prevent indiscriminate dumping of wastes will be carried out in the 2020 financial year. Furthermore, the government will provide more integrated modern public toilet facilities in strategic areas across the State to prevent indiscriminate defecation.

A total sum of One billion, Six Hundred and Ninety-eight million, Seven Hundred and Sixty-Three Thousand, Nine Hundred and Sixteen naira (N1,698,763,916) is allocated for all the capital projects in this sector.

CONCLUSION

30.Mr Speaker, Honourable Members of the House, I hope that government’s expenditure portfolio for the 2020 financial year as contained in this draft proposal provides a vivid picture of our commitment in ensuring that all Kwarans are alive to enjoy the fruit of a new and better Kwara. Please note that while available resources are low when compared to the expectations of our people, this administration is confident that a brighter future awaits our state considering our potentials in the area of human and material resources as well as the commitment of our team to make a difference.

31. It is with great pleasure, therefore, that I lay before this Honourable house the 2020 Budget proposal of Kwara State Government, and pray the Honourable Members of the Kwara state House of assembly to pass the same into law.

32.I thank you all most sincerely for your attention and God bless.

AbdulRahman AbdulRazaq
The Governor, Kwara State
18th December, 2019