by Usman Alabi
The Kwara State Governor, Abdulfatah Ahmed, has presented a 2017 budget estimate of N135.1 billion to the State House of Assembly.
The appropriation bill was tagged: “Budget of Introspection and Sustenance”.
The governor said the budget showed an increase of N23, 682, 157, 934 representing 21.2% over the 2016 revised budget.
In the budget, the sum of N57, 479, 632, 894 representing 42.5% was earmarked as recurrent expenditure. While N70, 986, 667, 592 representing 52% of the budget went to capital expenditure. He added that that N6, 798, 228, 975 representing 5% of the total budget is for public debt service
Economic sector took the lion share of N35, 437, 302, 393 representing 26% of the total budget, followed by Education with the sum of N29, 936, 179, 606 representing 22% of the total budget. General Public Services came third with the sum of N26, 497, 822, 611 representing 20% of the 2017 total budget.
According to the governor, the budget was based on oil price benchmark of $42.5 per barrel, oil production of 2.2 million barrels per day, average exchange rate of N1 to 305/$ and inflation rate of 10.28%.
The Governor said the budget is expected to be financed through Federal Allocations to the state, Internally Generated Revenue (IGR) and Value Added Tax (VAT). He added that Capital Development Fund Receipt/Aid and Term Loan facility from Financial Institutions.
The Governor told the House that about N23, 703, 893, 175 representing 17.6 per cent of the budget would be sourced from Federation Account, while IGR would fetch N29.3 billion, representing 21.5 per cent.