2022: El-Rufa’i to sell state’s assets to fund N233bn budget proposal

2022: El-Rufa’i to sell state’s assets to fund N233bn budget proposal

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Mr. Nasir El-Rufa’i, the Kaduna State governor, on Tuesday sent the 2022 Appropriation Bill of N233 billion to the State House of Assembly for consideration.

KADUNA STATE GOVERNOR, NASIR EL-RUFA’I PRESENTING THE 2022 BUDGET PROPOSAL TO THE STATE HOUSE OF ASSEMBLY ON TUESDAY.

The budgets estimate is slightly smaller than the proposed 2021 budget estimates of N237.52 billion in which N157.56 billion was Capital and N79.96 billion recurrent Expenditure, with 66 percent to 34 percent Capital to Recurrent ratio.

The Capital component at N146bn and recurrent expenses of N87.6 billion, the 2022 budget, when approved, is projected to have Capital to recurrent ratio of 63 percent and 37 percent, according to Governor.

Tagged Budget of sustainable Growth, would be funded with a projected revenue target of an oil price benchmark from the Federation Accounts of 57 US Dollars per barrel; daily oil production estimate of 1.88 million barrels, exchange rate of 410.15 per US Dollar; projected GDP growth rate of 4.2 percent and 13 percent inflation rate.

Other sources of funding, according to the Governor, include Internally Generated Revenue (IGR), Statutory Allocation from Federation Account ₦54,191,174,470.00, Contributions from Covid-19 Response Fund of ₦500,000,000.00 and ₦146,408,640,343.67 in addition to to proceeds from sales of Government Assets of estimated at N500,000,000.00 and the Opening Balance of ₦24,450,000,000.00.

El-Rufa’i also promised to inject 76.8 percent of the Capital budget into social and economic sectors such as schools, hospitals, and infrastructure, including housing. Capital spending on Education is N68.4 billion (29%) and for Health N35.1 billion (15%).

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“Therefore, we are proposing a budget size of N233bn in 2022, with the Capital component at N146bn and recurrent expenses of N87.6 billion. The 2022 budget, when approved, is projected to have capital to recurrent ratio of 63%:37%. The 2022 estimates are slightly smaller than the proposed 2021 budget estimates of N237.52 billion, of which N157.56 billion was Capital and N79.96 billion Recurrent Expenditure, a 66% to 34% Capital to Recurrent ratio”, according to him.

According to him, “Without hiking tax rates, Kaduna State has become a top five state for internally generated revenue in Nigeria, collecting N50.7 billion in taxes and levies in 2020. This is almost four times the N13bn that the state collected as IGR in 2015”.

The Governor who explained that the economy is gradually recovering from some economic shocks occasioned by the outbreak of Covid-19, also prioritizes, employment, health, security and Education.

He also pegged the Capital spending on Education is N68.4 billion (29%) and for Health N35.1 billion (15%).

“Therefore, we are proposing a budget size of N233bn in 2022, been the Capital component at N146bn and recurrent expenses of N87.6 billion. The 2022 budget, when approved, is projected to have Capital to recurrent ratio of 63%:37%. The 2022 estimates are slightly smaller than the proposed 2021 budget estimates of N237.52 billion, of which N157.56 billion was Capital and N79.96 billion recurrent expenditure, a 66% to 34% Capital to recurrent ratio.

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Further breakdown of the budget proposal, indicates that Recurrent Expenditure Estimates in 2022, the Personnel Cost is N44,653,466,906.47 while the sum of N31,705,684,158.87, was allocated to Overhead Cost while the sum of N6,200,000,000.00 is for Public Debt Charges, inclusive of 10% to Local Government Joint Council 5,016,269,047.66.

Of the Capital Expenditure Estimates 2022
The sum of ₦146,097,619,642.88 has been allocated as Draft Capital Estimates across sectors as follows:
Sub-Sector: Economic Proposed Estimates, Agriculture 1,796,277,164.4, while Business, Innovation and Technology would gulp the sum of 3,725,230,354.53.

Housing and Urban Development 9,347,379,072.06, Public Works and Infrastructure, 36,973,505,543.12.

Also, Sub-Sector: Economic 51,842,392,134.12 while the Sub-Sector for Social include, Education – 44,686,238,773.12
Health – 22,764,378,045.10
Social Development 690,522,000.00
Total for Sub-Sector: Social 68,141,138,818.22 among others.

Responding, Hon. Ibrahim Yusuf Zailani, the Speaker of Kaduna State House of Assembly, slated the budget proposal for first reading and assured the Governor of the support of the Parliament.

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