Tuesday, July 27, 2021

    Kaduna Govt. promises a realistic budget for 2022

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    Naija247news is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

    By Philip Yatai
    Kaduna, July 1, 2021 The Kaduna State Government on Thursday promised a realistic budget for year 2022 in line with the 2022 – 2024 Medium Term Expenditure Framework (MTEF) Budget estimate.
    The Commissioner, Planning and Budget Commission (PBC), Mr Thomas Gyang, gave the assurance in Kaduna during a meeting with relevant stakeholders to make inputs into the MTEF document.
    Naija247news recalls that some Civil Society Organisations (CSOs) in Kaduna State had on Wednesday, advised the state government against unrealistic budgeting for 2022.
    The CSOs observed that the state’s budgets had always been higher than the MTEF recommendation since 2016, making the budgets unrealistic, except in 2019 when it was closer to the MTEF recommendations.
    Gyang, who was represented by the Permanent Secretary, Mrs Phoebe Yayi, explained that the MTEF recommended a budget size of N197.6 billion for 2022.
    He said that the projected capital expenditure was N115.5 billion and a recurrent expenditure of N82.1 billion, with a total recurrent revenue of N140.5 billion and capital receipt of N26.5 billion.
    He said that expected statutory allocation was N54.2 billion; VAT, N25.2 billion and Internally Generated Revenue (IGR) , N61.1 billion.
    He said that the budget estimate was based on the microeconomic assumptions of 13.5 per cent inflation rate, 1.8 per cent real GDP growth rate, and oil benchmark of 50 dollars, per barrel.
    He added that the estimate was also based on the assumed exchange rate of N410 to a dollar.
    “The engagement with civil society organisations and relevant stakeholders, therefore, is to update stakeholders on the milestone reached on the 2022 – 2024 budget cycle.
    “It was also organised to provide insights on the underlying macro-economic assumptions and fiscal targets that informed the preparation of the 2022 – 2024 MTEF document.
    “This will further strengthen citizens’ participation, transparency and accountability in the state.
    “It is expected that the 2022 budget estimates will be based on the MTEF figures, which has historically provided more realistic estimates,” he said.
    One of the participants, Mr Yusuf Goje of the Coalition of Associations for Leadership, Peace, Empowerment and Development, commended PBC for consistently engaging citizens to validate the MTEF document.
    Goje however expressed concern that the agricultural sector had continued to receive less allocation, despite its contribution to the economy of the state.
    He also expressed worry over the high debt profile of the state, which stood at N284 billion as at Dec. 2020, according to the MTEF document.
    He added that the document also indicated a plan by the government to borrow N70 billion in 2021 and N30 billion in 2022.
    This, according to hm, is huge, considering the weak capacity to generate the required IGR to repay the loan due to insecurity and declining economy.
    Also, Mrs Rebecca Sako-John, Executive Director, Legal Awareness for Nigerian Women, urged PBC to engage stakeholders at the formulation of the MTEF document.

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