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KADUNA STATE 2013 DRAFT BUDGET OF CONSOLIDATION AND ADVANCEMENT AS PRESENTED TO THE HONOURABLE MEMBERS OF THE KADUNA STATE HOUSE OF ASSEMBLY ON THURSDAY 13^TH DECEMBER 2012

1.1           REVIEW OF THE 2012 BUDGET.

In January 2012, the state and indeed the country at large witnessed an unparalleled labour unrest for more than two weeks as a result of the total removal of the subsidy on Premium Motor Spirit (PMS). The effect lingered long even after the President of the Federal Republic of Nigeria; Dr Goodluck Ebele Jonathan GCFR approved a downward review. The state has had more than its fair share of the security challenges confronting our dear country. It experienced unnecessary and unfortunate bomb blasts, armed banditry etc. We want to commend members of this Honourable House, the security agencies, traditional and religious institutions and the good people of Kaduna state for their efforts in ensuring that we overcome these challenges.

The effects of these unfortunate happenings, no doubt affected the socio-economic activities of the state especially the Internally Generated Revenue (IGR), because the IGR was a major plank of our 2012 budget. It is our earnest prayer and hope that these unfortunate events have been put behind us permanently.

1.2      Mr. Speaker, Honourable Members, It will interest you to know that in spite of our enormous challenges, some of which I had earlier highlighted, we have nonetheless recorded successes, a product of our collective effort.

2.0      TOTAL BUDGET SIZE

A total of N159, 347,937,145 was envisaged to be spent for the year 2012 out of which N73, 506,625,540 was appropriated for recurrent expenditure while N85, 841,311,605 was allocated for capital expenditure.

2.1      RECURRENT REVENUE

A total Recurrent Revenue of N158, 215,708,665 comprising Opening Balance, projected Internally Generated Revenue, Statutory Allocation and loans were earmarked for 2012. The breakdown of the anticipated Recurrent Revenue and actual collection as at October, 2012 is as follows:-

		Estimates (N)	Actual (N)
a.	Opening Balance	38,000,000,000	30,000,000,000
b.	Internally Generated Revenue	35,551,374,730	12,352,040,368.46
c.	Statutory Allocation	48,000,000,000	46,204,736,483
D	Loans	36,664,333,935	20,827,000,000
		158,215,708,665	109,383,776,851.46

Measures are being put in place to reduce continuous dependence of the State on Statutory Allocation for funding both recurrent and capital expenditure. It is hoped that the reforms already embarked upon at the Board of Internal Revenue and other Revenue Generating Agencies will help to boost internal revenue collection in the State to fund the lofty programmes of 2013 – 2015 and beyond.

2.2      CAPITAL RECEIPTS

The anticipated Receipts of N85,841,311,605 in the 2012 fiscal year comprised of Value Added Tax of N8,000,000,000; Transfer from Recurrent Budget Surplus of N48,044,749,190 ; External Loans of N10,991,550,000  Grants of N13, 319,575,915.00 and proceeds from sales of Fertilizer N838, 436,500. Actual Receipts of N8, 086,925,203.17 from Value Added Tax (VAT) as at October 2012, surpassed the estimated sum of N8, 000,000,000. Most of the internal and external loans did not materialize as expected. Out of the envisaged sum of N36,664,333,938 to be realized from Internal and External Loans in 2012, only the sum of N20,827,000,000  was realized from Internal loans.

 2.3      RECURRENT EXPENDITURE

The approved estimates for 2012 stood at N73,506,625,540 while an expenditure of N58,088,134,066.70 was recorded as at October 2012 representing 67% performance of the Recurrent Budget as follows:-

S/N	Details	Approved budget (N)	Actual Expenditure as at October, 2012 (N)
1.	Consolidated Revenue Fund Charges	4,790,000,000	97,485,171.75
2.	Personnel Cost	29,537,793,499	23,697,723,650.
3.	Overhead Cost	26,071,108,796,	25,482,750,596.
4.	Public Debt Charges	12,157,723,245	8,686,644,245.45
5.	10% Local Govt. Joint Councils	950,000,000	123,530,403.68
	Total	73,506,625,540	58,088,134,066.70

Apart from payment of salaries and allowances to Civil Servants, Public Officers and Political Office Holders, payment of Pension and Gratuity to Retirees and Overhead Cost to all Government MDAs, key recurrent programmes implemented include among others:-

         i.            Security for peace and development;

       ii.            Procurement of Drugs for children under-5 years and pregnant women;

    iii.            Payment of SSCE and NECO Examination fees and payment of scholarship

    iv.            Purchase of relief materials for victims of human and natural disasters.

 

2.4 SECURITY

The security challenges in our state are well known by all of us. In 2012 we tackled many of these challenges with some measure of successes as a result of the professional job being carried out by our security agencies with support and cooperation of relevant stakeholders in the state i.e our revered religious leaders, traditional leaders, political class, elders, women and youths.

i.                    The Peace and Reconciliation Committee has continued to work towards ensuring sustained peace and peaceful co-existence amongst people living in Kaduna state. The report of this committee is due soon.

ii.                 Furthermore the Council of Chiefs and, Inter-Religious Harmony Committee have been working tirelessly to support the security agencies in the state in the maintenance of peace and security.

iii.               The bill on the Kaduna State Vigilante Service will be forwarded to you for your consideration. This will help us consolidate on the other security initiatives already in place in the state.   The Kaduna State Vigilante Service Law, when enacted will give legal backing; define activities and operational guidelines of the service.

2.5      CAPITAL EXPENDITURE

The review of Capital Expenditure for the period January to October 2012 recorded considerable improvement over previous years in the implementation of key projects in the following sectors:

2.5.1  SOCIAL SECTOR

EDUCATION

The education sector received priority attention with increase to access and quality of education in line with the government policy of increasing access to and quality of education. Accordingly, projects worth N3, 606,451,819.78 have been executed. Highlights of key activities in the education sector are as follows:-

a)    Whole School Development across the 3 Senatorial zones. There is remarkable improvement in school infrastructure with the renovation of Alhuda - Huda Secondary School, Zaria, Government College Kaduna and Government Secondary School, Fadan Kaje, into modern colleges.

b)    Payment of scholarship to undergraduates in various higher institutions of learning. In addition, indigenes of Kaduna state enjoy 50% reduction in fees at the Kaduna State University.

c)     Construction works which are at various stages of completion at the Kaduna and Kafanchan Campuses of the State University, College of Education, Gidan-Waya and Nuhu Bamali Polytechnic Zaria.

d)   Various faith-based schools were supported through provision of classes, purchase of vehicles, equipment and furniture across the State.

e)    The supply of science, vocational and technical equipment and furniture to schools across the State.

f)      Expansion/rehabilitation of school libraries in the State.

g)    Construction, renovation and supply of furniture to Primary Schools across the State.

h)   Drilling of boreholes in Secondary Schools to provide potable water to students and teachers.

i)      Production of Question and Answer Textbooks to prepare final year candidates for SSCE and NECO examinations.

HEALTH

In line with the policy of this administration for Improved Health Care Delivery System in the State, the health sector enjoyed priority attention within the year under review. Some of the programmes embarked upon in the health sector include:-

(a) The sum of N436, 880,731.80 was expended on Free Medical Health care for pregnant women and children under-five years of age.

(b) A total sum of N56,409,483 was expended by this Government in its effort to combat the spread of malaria throughout the State.

(c) This administration in collaboration with MDGs (Nigeria) has implemented the expansion and rehabilitation of Rural Health Clinics and the supply of drugs and medical equipment to hospitals in all the 23 LGAs. The sum of N315, 875,779.92 was spent.

(d) The conversion of Barau Dikko Hospital into a specialist and teaching hospital to cater for students of the Faculty of Medicine of the State University has commenced. The project includes the construction and equipping of an ultra modern dialysis center, a modern intensive care unit with life support ambulances and a fully furnished academic complex.

(e) This administration also approved the immediate take-off of two very important Agencies in the Health sector i.e State Primary Health Care Agency (SPHCA) and the Drugs and Medical Supplies Management Agency (DMSA). Government is now focusing attention in reviving all Primary Health Care Centers (PHCs) and repositioning them to provide services to 65 – 70% of our population as against the hitherto position of 5 – 10%. The Drugs and Medical Supplies Management Agency (DMSA) is to ensure the constant availability of quality drugs and other Medical Supplies in all Secondary and Primary Health facilities. The Agency is responsible for the procurement, distribution and monitoring of medical requirements of the state

    POVERTY REDUCTION, WOMEN AND YOUTH EMPOWERMENT

In the area of women and youth empowerment, this administration identified entrepreneurial skill for women and youths and supported them with training and start-off grant to boost their businesses. Physically challenged persons were also trained and given resettlement tools.

 In addition, Government procured 700 tricycles (Keke NAPEP) and 40 No. taxis under the phase one of the SURE-P programme, for distribution to our unemployed, but virile youths as part of measures to reduce the unemployment situation in the state.

 MDGs

We are committed to the global objectives of attaining the Millennium Development Goals (MDGs) by 2015, which includes poverty reduction, access to health care, water and sanitation, gender empowerment, education, HIV/AIDs reduction. The Government has embarked on the implementation of many projects towards this end. These projects which are in collaboration with the Federal Government through the conditional grant scheme include: - 23 solar powered boreholes, 400 hand pumps boreholes, 30 VIP latrines and 86 Primary Health Centres. The 2013 budget will further boost these activities and improve on other aspects of the MDG's in the state.

INFRASTRUCTURE

This Administration considers the provision of infrastructure as the bedrock of our development and facilitation of our human resource endowment.  Urban and rural electrification, road network system, housing projects and portable water are the main projects that will continue to receive the attention of Government.

  TRANSPORT

Under this sector, on-going contracts for the construction of Roads and Bridges amounted to N13, 811,099,622.91 and are at various stages of completion.  Some of the construction and rehabilitation of some of these roads started in 2011 but continued with much vigour during this financial year (2012). These include;

-          The 4^th bridge across river Kaduna and access roads

-         Rigasa – Tsangaya – Hayin Danmani road

-         Narayi – Bayan Dutse road

-         Ikara – Soba road

-         Jere – Kurmin Jibrin – Kwoi – Kafanchan Road

During the last quarter of 2012, 31 other new roads worth N28, 006,567,931.30 were awarded. So far a total sum of N7,001,641,982.83 has been paid representing 25 percent of the total contract sum to enable the various contractors mobilize to sites. Adequate provision is being proposed in 2013 -2014 to cater for the payments as they fall due. The roads are as follows:-

1.     Garun Kurama-Kurandai-Bandu Kasuwa

2.     Maraban Kakeyi-Farin Kasa-San Birni-Richifa

3.     Farar Gada-Yakawada - Iyatawa

4.      Dogon Dawa-Sabon Layi-Old B/Gwari

5.     Kwassam-Kushere-Geshere

6.     Kwagiri-Kussam-Wasa

7.     Kwoi-Dura-Ankung-Taimen-Indafu

8.     Kagoro-Manchok-Mabushi

9.     Bukus-Kwasim-Ayuba-Anguwan-Yasi-Yan-Karfe-Hanwa

10.           Gonin gora-Hayin Katafawa-Ung.Bije-Gonin Gora

11.           WAEC-GGSS Kawo-College Road Lafiya

12.           Tanko Ayuba Road-NAFDAC-Post Office

13.           Kudendan Road Network

14.           Hayin Jirgi-Borno Road

15.           Likoro-Magata

16.           Sakaru-Bagaldi

17.           Romi-Karatudu

18.           Garun Kurama-Kerau Road

19.           Shehu Idris Road-Tudun Jukun Road

20.           Barnawa Central

21.            Barnawa Phase I

22.           Gangara Township

23.           Kutemeshi-Yankan Dutse

24.           Makera-Yam Market-Afaka Roads

25.           Rigachikun Township

26.           Zonkwa-Yarbuan

27.           Gidan Mana Township

28.           Kagoma Township

29.           Angwan Idi-Kusheka

30.           Gantang-Bahago

31.           Benue Road

In totality, the roads under construction, both ongoing and completed are over 525 kilometers.

This administration has taken giant strides by purchasing 50 additional vehicles for the Kaduna State Transport Authority (KSTA).  This is part of effort by government to make movement less difficult for our people. This sector is critical and will continue to attract the attention of government in the New Year.

 RURAL FEEDER ROADS

The government of Kaduna state touched by the plight of our teeming rural dwellers embarked on a deliberate programme to open the rural areas through KADRAMP. The objectives of the programme includes improving rural mobility, evacuation of agricultural produce and raw materials to industries, food to markets and facilitate access to health and social development.

KADRAMP Rural Access and Mobility Project is a collaborative project between Kaduna State Government and the World Bank. The project has similarly awarded contracts for construction of bridges, culverts, level crossings and feeder roads across the State which the state government has paid N250,000,000.00 counterpart funds for 2012.

The project has started the process of supporting the state government in improving the management capacity in roads administration by developing a transport policy.  Currently, 458 kilometers of roads are being constructed in Rigachukun – Tami - Birnin Yero (Igabi LGA).  Kakangi – Murai (Giwa LGA). Barga – Mai Ido (Kachia), Amere – Gerti (Jama'a), Kubacha – kukui-kussam (Kagarko LGA), Fadan Kamatan – Walijo (Zango Kataf and Kachia LGAs).  The construction of these roads which this administration started in 2011 will continue in 2013 with more vigour.

In addition to the above, the ministry of rural and community development is also aggressively pursuing the construction of rural roads across the 23 Local Government's Areas of the state. Some of these rural roads under this ministry were completed 100 percent this year, such as, Birnin Yero – Kwarau road, Katsit – Tum – Maadkiya roads, others will continue in 2013.

Right Honorable Speaker, Honorable members, distinguished ladies and gentlemen it is pertinent to observe that in spite of the large number of urban and inter-township roads constructed between 1999 to date, under the ministry of works and recently under the ministry of agriculture and rural and community development, the demand for road construction remains the foremost need of our people.

 WATER SUPPLY

The provision of portable water to all communities of the state remains of critical importance to this administration; consequently, the state has embarked on extensive projects toward the realization of this objective.

Mr. Speaker, Honorable members, I wish to report that remarkable progress has been recorded at the Zaria Regional Water Supply scheme. To date, the sum of N1,998,501,233.91 billion has been expended on the construction of the 150 million liters per day Zaria Water Treatment Plant.

In line with this commitment, the project has been redesigned to cover seven Local Governments in the northern senatorial zone. The project, however suffered a set back with the unfortunate killing of one expatriate worker and the kidnapping of another in April 2012. This led to the abandoning of work by the contractors for a period of about four months.  Thankfully, work has resumed at the site.  The need to get the project right and meet the ever increasing population of the benefitting local governments required a complete and proper revision of the design to enhance sustainable water supply beyond the 2025 target date. Naturally, this has increased the government expenditure profile on the project.

Under the Emergency Water Supply Programme, sufficient quantity of alum, for water treatment, was procured. Other immediate intervention measures include the procurement of stand-by generators, pipeline network rehabilitation and extension in various parts of the State. With a view to increasing access to water supply across the state, the Zonkwa Regional Water Supply Scheme was rehabilitated to meet the clean water requirement of the area.  There is also the construction of 36 solar –powered and 759 hand pump boreholes at various stages of completion. In addition, under the National Urban Water Sector Reform Programme, financed by the World Bank, Kaduna, Zaria, Kafanchan and Kagoro water supply has greatly improved. The projects under this programme include:

(a) Completion of on-going Rehabilitation works in Kaduna, Zaria, Kafanchan, Kagoro and Zonkwa Water Supply Systems.

(b) Pipeline network rehabilitations in all the above towns.

(c) Intensive consumer metering.

(d) Supply of Water Treatment Chemicals

(e)Water Policy and Institutional Reforms

(f) Capacity Building

(g) Public Awareness and Enlightenment

In the New Year, we hope to award contract for the design of the Kachia Water Supply Project as a prelude to the award of the contract for the construction of water treatment plant, lying of pipe line etc. Also to be embarked upon is the provision of tube wells to augment shortage of water supply to Birnin Gwari and environs.

2.5.2  ECONOMIC SECTOR

AGRICULTURE  

A lot of potentials exist in the agricultural sector for food security, production of raw materials for the establishment and growth of agro-allied industries and job creation. In order to boost agricultural development, Government embarked on various programmes and projects like construction of rural feeder roads, ensuring that fertilizer were procured and sold to farmers at highly subsidized rate. Kaduna State Small Holder Farmers further benefited from the newly introduced Growth Enhancement Support Scheme. Under this scheme, a total of 120,736 small holder farmers who registered received 2no.  50kg bags of fertilizer and free improved seeds. The subsidy was borne jointly by the Kaduna State and the Federal Government of Nigeria on equal basis.

Expenditure incurred on some of the programmes and projects are as follows:

(i) Procurement of fertilizer worth N4, 143,220,000 which was sold to farmers at 50% subsidy. Also, N333, 000,000 was paid as subsidy share contribution under the Growth Enhancement Support Scheme.

(ii) Under the tractorization programme 186 units of Tractors were purchased at the cost of N1, 135,000,000 and sold at 60% subsidy to co-operative farming groups, individual farmers and relevant agencies.

(iii) To further boost animal husbandry about N36,750,000 was expended on disease control, maintenance of grazing reserves and demarcation of stock routes.

(v) The State also paid its counterpart contributions to the following projects viz: Fadama III Project – N45,800,000; Community and Rural Development Programme – N10,000,000,  Leventis Foundation School, Dogon Dawa, Birnin Gwari – N39,238,104 and N180,000,000 for commercial agricultural development projects to assist revolutionize farming in the State. Several studies on modern farm technologies were embarked upon to open new frontiers in productive farming e.g. soil testing, improved seedlings and artificial insemination to benefit the teeming farm families in the State.

(vi) Procurement of irrigation pumps and sprayers were sold to farmers at highly subsidized rate.

CULTURE AND TOURISM

The place of culture in our lives and the potentials of the tourism industry as a revenue source cannot be over emphasized. This administration has been able to reinvigorate the Tourism Industry. The review of laws and introduction of Hotel levy has improved revenue generation in this sector.

 MONITORING AND EVALUATION (M&E)

Mr. Speaker, Honorable Members, for us to maximize the gains of our efforts and to sustain best practices across sectors we are implementing a comprehensive Monitoring and Evaluation (M&E) program at the State and Local Government levels.

Through this wide scale M&E programs, we have built the capacities of more than 700 civil servants in the following areas;

a)    Policy Planning and Development: This includes capacities to appreciate state and sector policies and the general working of governance for quality operations at all levels of the civil service.

b)    Budgeting and Implementation: At least, 32 Ministries, Departments and Agencies (MDAs) have benefitted from the training on effective budget planning and implementation to help staff appreciate the practice of budget credibility and resource management.

c)     Evidence Based Development: We are working to improve evidenced based decision making across the sectors in Kaduna State by supporting the 23 LGAs including 32 MDAs to collect data for self performance assessment.

d)   Systemic approach to development through the creation of synergies across sectoral operations and management of resources for maximal impact for our people. The State is now better positioned to link development planning; reduce duplications and wastage of resources to ensure accountability and transparency.

e)    In this direction, the M&E activities will be strengthened in 2013 to further consolidate on the gains of using data to assess our performance.

3.0      2013 BUDGET

Mr. Speaker, Honorable Members, the objective and aspiration of the 2013 draft Budget tagged Budget of Consolidation and Advancement has compelled this administration into reviewing upward charges, identifying hitherto untapped IGR sources against the background of dwindling allocation from the federal account and the huge expectation by the people of the state for the delivery of the dividends of democracy. These are part of the outcomes of the revenue enhancement committee under my chairmanship.

In line with this drive, we call on residents of this State to cooperate and support this Administration to enhance the internal revenue base of the State.

Mr. Speaker, Honourable Members, it is worthy to state that the 2013 draft budget is also aimed at addressing our infrastructural needs in terms of the provision of roads ,improved water supply, improved standard of education and developing the capacity of our health facilities for better health care delivery.

Mr. Speaker and Honourable Members, you may also wish to note that the consideration of the 2013 Recurrent and Capital Estimates is within the context of the Multi-Year Budgeting Framework that was introduced in 2009 as part of the Public Finance Management Reform in the State. The State Executive Council has painstakingly scrutinized the 2013 Draft Estimates to ensure that a realistic Budget is presented before this Honourable House for consideration and approval. Therefore, the capital works of year 2012 would, in almost all cases, roll over into year 2013 for continuation, completion and consolidation.

3.1      PROJECTED REVENUE FOR 2013

Revenue Projection for 2013 budget is as follows:-

(a) Opening Balance - N 8,000,000,000

(b) Internally Generated Revenue - N 29,087,728,838

(c) Statutory Allocation from Federation

Account - N 65,000,000,000

(d) SURE- P - N3, 372,000,000

Total Estimated Revenue                  =         N105, 459,728,838

The Internally Generated Revenue projection for the year 2013 is believed to be a realistic projection and we hope that with the support of this Honorable House and the cooperation of development oriented people of the state we shall realize it.

 



Via: Kaduna State Government - Official Press Release