GOV OBI AND BUDGET SPEECH

ADDRESS PRESENTED BY HIS EXCELLENCY, MR. PETER OBI, CON, GOVERNOR OF ANAMBRA STATE, TO THE HONOURABLE MEMBERS OF THE STATE HOUSE OF ASSEMBLY ON 18TH DECEMBER, 2012

2013 BUDGET OF INTEGRATED DEVELOPMENT VI

His Excellency, the Deputy Governor,
The Honourable Speaker, Honourable Deputy Speaker, Principal Officers and other Honourable Members of the Anambra State House of Assembly,

The Chief Judge of Anambra State,
The Secretary to the State Government,
The Head of Service,
Honourable Commissioners,
Special Advisers to the Governor,
The Permanent Secretaries,
The Clerk of the House,
Senior Special Assistants to the Governor,
Special Assistants to the Governor,
Traditional Rulers,
Gentlemen of the Press,
Distinguished Ladies and Gentlemen

It is my pleasure to present to you today the Fiscal year 2013 Budget of Anambra State. This is my sixth Budget presentation to the Honourable Members of the State House of Assembly since becoming the Governor of Anambra State. As in the last five Budgets, this Budget is results-based and a continuation of our Vision of achieving the Millennium Development Goals (MDGs) by 2015 and our strategy of integrated development, aimed at steering Anambra State towards achieving comprehensive development. As is already generally known, this vision and strategy are embodied in a unique, multi-sectoral, pro-poor and grassroots-oriented christened Anambra Integrated Development Strategy (ANIDS). The objective is to achieve the MDGs by 2015, by focusing on all sectors simultaneously, taking into account the peculiar circumstances of our great State.

We will continue to adopt a holistic and participatory approach to planning, budgeting and project implementation, as well as monitoring and evaluation. In doing this, we will be relying on our own resources and those of our partners. In this regard, the assistance of our development partners will become even more critical; it is on record that Anambra State remains the leading State in terms of collaboration with development partners – international, national and local.

Before presenting the relevant details of the Fiscal Year 2013 “Sixth Budget of Integrated Development”, please permit me to review briefly the implementation of the 2012 Budget.

THE 2012 BUDGET
In 2012, and as in previous years, our weak financial base, made even weaker by poor internal revenue receipts, was a major economic problem to contend with. In spite of this very daunting situation, however, we have continued to do our best within the limits of available resources and opportunities at our disposal. As always, Government acknowledges and is appreciative of the goodwill and assistance of individuals, corporate entities and development partners, with whose support we have been able to record some remarkable achievements across sub-sectors in line with ANIDS and the MDGs.

ROADS AND TRANSPORT
During the period under review, the target of the State Government in the Roads sub-sector was to complete at least 100km of asphalted roads with associated drains and culverts. In pursuance of this objective, a great number of inter-community and urban roads were completed to beef up the State's impressive road network, which is recognized as one of the best in the country. In addition, many more roads are ongoing while contracts have been awarded for new ones. This is in recognition of the fact that poverty reduction, which is the essence of MDG No.1, cannot be achieved without the opening up of poor, remote and rural areas with good roads, as the basis on which commerce, industry, agriculture, etc will thrive.

COMMERCE AND INDUSTRY
Also in pursuit of Goal No. 1, we are making concerted efforts to create an enabling environment for commerce and industry to thrive. Some of our achievements in this sector are as follows:

· Provision of state-of-the-art roads in the Harbour Industrial Layout, Onitsha, resulting in the return of industrialization and creation of much-needed jobs.

· Onitsha Business Village (Phase 2-ICT): Construction works on this project are nearing completion.

· Through direct monetary investment and other efforts, Government was instrumental to the coming on stream of SABMiller Breweries which has enormous potential for employment generation and poverty reduction.

· Also through an investment of more than N4 billion, Government actualized the long-standing dream of making Anambra State an oil-producing state with the commissioning of Orient Petroleum facilities.

· Commencement of work on LG World-ANIDs Project designed to establish a one-stop shop for electronic goods, services and training.

AGRICULTURE
With its strong potentials for provision of food security, poverty alleviation and employment creation, Agriculture is recognized as a real sector and a development enabler. In the Agriculture sector, the following milestones were attained:

· Upgrading of the status and credibility of the College of Agriculture, Mgbakwu, through the accreditation of more courses, recruitment of additional staff and massive infrastructural development (construction of classrooms, laboratories etc).

· Increased food production through mechanization, credit facilities to farmers and supply of highly subsidized fertilizers and improved seedlings.

· Prompt payment of Government Counterpart Cash Contribution (GCCC) for externally supported/funded Agric programmes

EDUCATION
The State's Education Sector has continued to remain vibrant and a model for other states, particularly with Government's remarkable intervention in schools, especially those returned to their original Missionary owners. At tertiary, secondary and primary levels of education, a good number of achievements were recorded:

· Massive rehabilitation and equipment of primary, secondary and tertiary institutions (completed and ongoing);

· Ongoing rehabilitation and equipment of Secondary School Libraries;

· Distribution of Computers to more secondary schools in the State;

· Provision of school buses for public, private and Mission secondary schools ;

· Continued transformation of Anambra State University with massive infrastructural development and accreditation of more academic programmes;

· Continued upgrading of Nwafor Orizu College of Education, Nsugbe with recruitment of additional staff and accreditation of more academic programmes;

· Resuscitation and improvement of School Sports and Competition; and

· 100 Secondary Schools (including 38 which were returned to the Missions) have been given an initial N10 million each to commence massive and unprecedented rehabilitation of schools across the State.

HEALTH
Programmes and projects in this sector were geared towards achieving Goals Nos. 4, 5 and 6 of the MDG. In this regard, the following milestones were recorded.

· Rapid infrastructural development through the completion of numerous projects at Anambra State University Teaching Hospital, Awka;

· Both the Teaching Hospital and the College of Medicine were fully accredited in 2012 by the relevant bodies;

· The Schools of Nursing and Midwifery Nkpor had their accreditation renewed by the Nigerian Nursing and Midwifery Council;

· In continuation of its unique collaboration with the Church, Government is constructing residential buildings for health workers (hostels for student nurses, midwives and lab technologists, House Officers' residence etc) in various Mission-owned health institutions: Iyi-Enu Hospital, Ogidi; St. Joseph Hospital, Adazi-Nnukwu; Waterside Hospital, Onitsha; St Charles Boromeo Hospital, Onitsha; and Our Lady of Lourdes Hospital, Ihiala. At least 10 such structures are being constructed at the cost of N60 million each;

· As part of this partnership with the Church, about half a billion naira (N500m) was given to various Mission Hospitals for rehabilitation and upgrading of structures and equipment;

· ANSACA and TBL maintained sustainable action in combating HIV/AIDS, Tuberculosis, Burulli Ucer and Leprosy within the fiscal year;

· Wide-scale distribution of drugs and insecticide-treated mosquito nets to all Service Delivery Points in the State to reduce the malaria burden. The innovative and widely acclaimed strategy of distributing the nets to secondary school boarding students was also introduced to achieve this objective, with the Governor visiting schools to personally distribute the nets; and

· Sustained immunization coverage at above 80% and 0% prevalence of polio virus, as Anambra State continues to remain polio free.

ENVIRONMENT
In pursuance of the goal of environmental sustainability which is the focus of MDG No.7, Government continued its battle against erosion, flooding and other forms of environmental degradation:

· Erosion control projects were completed at Nkpor, Mgbakwu and Ebenebe while seven others are on-going at Nsugbe, New Judiciary Complex Awka, Utuh/Osumenyi, Iyiagu Channelization/Drainage Project (Phase 2) in Awka, Agulu, Nnewi-Ichi, and Adazi Nnukwu;

· Opening up of blocked drains at Obodo-Ukwu Road, Okpoko, and commencement of mega drainage works at the Sakamori drainage network in Onitsha and environs;

· Establishment of mega nursery Plantation for bio-control of erosion sites and Afforestation project;

· Sustenance of waste disposal in the State including Integrated Waste Management Project in partnership with LAGA International Ltd at Onitsha.

· Establishment and empowerment of Anambra State Waste Management Agency (ASWAMA) for comprehensive management of waste disposal in all parts of the State;

· Commencement of mapping of all erosion sites (both active and non-active) in the 177 communities of the State;

· Procurement of N300 million worth of solid waste disposal receptacles and compactors; and

· Government's handling of the flood disaster in many LGAs of the State was pro-active and widely commended nationally and internationally.

WATER AND ELECTRICITY
Programmes and Projects implemented in this sector are also in accord with the imperatives of MDG No. 7 on environmental sustainability and access to clean water and basic sanitation. Achievements in this area include:

· The State Government has signed a Concession Agreement with BIRSA Engineering Construction Company for the rehabilitation and expansion of the New Greater Onitsha Water Scheme;

· Work on the Obizi Water Supply Scheme is continuing, and Government has checked and controlled the menace of erosion that affected the 12mm pipe line of the Scheme;

· The Water Supply Scheme for Government Lodge, Onitsha has been completed;

· As part of the MDGs Programme, water supply schemes to serve Achalla, Anaku, Omor, Igbakwu, Ifite-ogwari, Omasi, Ozubulu, Ohita, Atani, Akili-Ozizo, Ochuche-Umuodu, Ogbakuba, Umunankwo, Ossomala, Umuoji, Ogidi and Oba are ongoing;

· For UNICEF-assisted Water Schemes and sanitation facilities, contracts have been awarded for the provision of 30 solar powered boreholes and works have been completed in 26 locations. Work is also ongoing on 29 (4-compartment pour flush) latrines;

· Arrangements for the take-off of the European Union 10th EDF have been completed with the selection of two Local Government Areas (Aguata and Anambra East) to benefit from the Water Supply and Sanitation Programme that will run from 2013 to 2017;

· On Rural Electrification, the State has extended electricity to all the communities in Anambra West and Awka North Local Government Areas; and

· Arrangements are at an advanced stage for considerable improvement in electricity supply through Independent Power Projects (IPP)

OTHER PROGRAMME ACTIVITIES
Quite a number of other programme activities have been carried out across sectors for the achievement of the MDGs. These include:

· Release of funds for development partnership activities, such as those of UNICEF and UNDP which cut across Ministries, Departments and Agencies (MDAs) of the State;

· Numerous poverty reduction interventions, especially through the Ministry of Women Affairs, through provision of grants and micro-credit to widows, orphans and vulnerable children, the physically challenged and unemployed youths; and

· Completion of 11 additional Youth/Skill Acquisition Centres in the following locations: Achalla, Ajalli, Anaku, Nnewi, Nnobi, Onitsha (GTC and Modebe Memorial Grammar School), Otuocha, Ukpo, Umunze, and Unubi. With this, one such centre has been provided in each of the State's 21 LGAs and plans are being concluded to make all the centres functional.

BUDGET 2013 PROPOSAL

Honourable Speaker,
Honourable Members of the House,
Distinguished Ladies and Gentlemen.

Please permit me to present to you the policy thrust, profile and highlights of the Fiscal Year 2013 “People's Budget of Integrated Development VI”. This result-based budget reflects the critical development needs of the people of Anambra State as expressed in the key sectors of the State economy. In doing this, we have taken into account the lean financial resources of the State and the need to intensify on-going reforms in the Public Financial Management (PFM) System.

The 2013 Budget is premised on the following policy thrusts:

· Sustain and intensify various interventions in the area of poverty reduction for the eradication of extreme poverty and hunger;

· Promote the implementation of those programmes and projects that address the critical targets of the MDGs;

· Intensify the enthronement of good governance and adopt relevant reforms in our Public Service and Public Financial Management System, in line with International Best Practices;

· Continue to explore and adopt measures needed for the maintenance of security of lives and property;

· Encourage more fruitful Public-Private Partnership (PPP) in our development efforts;

· Continue to effect the prompt payment of salaries and allowances of civil servants, as well as pensions and gratuities of those on retirement;

· Continue to explore alternative strategies for effectively increasing the State's Internally-Generated Revenue, and in this regard plug all known leakages in the revenue collection system; and

· Continue to ensure that there is synergy between the implementation of the budget and the desired results by promoting the bond of performance between the government and the governed.

BUDGET SIZE
Ø The total budget size for year 2013 is N110.890 billion as against N83.200 billion budgeted for 2012. This represents an increase of 33.28 percent over the Budget of 2012. This amount is made up of N70.895 billion for capital expenditure and N39.995 billion for recurrent expenditures.

Ø An estimated total sum of N70.895 billion is expected from Capital Receipts in 2013, an increase of 51.07% over the budgeted sum of N46.929 billion for 2012.

Ø The emphasis of the State Government will be on poverty reduction measures with the Economic Sector having an allocation of 32.39% of the total capital budget. Other sectors are Social (19.13%), Environmental (10.62%), and General Administration (37.85%).

Ø Government is mindful of the need to make our capital budget more realistic and predictable in 2013. Consequently, prioritization of projects and programmes with a view to obtaining optimal results is the guiding principle in the allocation of funds, given the ceilings and envelopes allocated to each sector/sub-sector, based principally on the anticipated resource picture in 2013 and an analysis of the needs/resource requirements of sectors/MDAs.

PROJECTED RECURRENT REVENUE PROFILE
The projected revenue earning for Fiscal Year 2013 is N66.500 billion, and is broken down as follows:

N Billion % of Total Rev

i. Internally-Generated Revenue (IGR) 12.500 18.80%

ii. State share of Federation Account 54.000 81.20

Total 66.500 100.00%

The bulk of the revenue (81.20%) is expected from the State's Share of Federation Account. However, efforts to narrow the gap between the various revenue categories are ongoing. Details of the revenue profile are presented hereunder.

S/N
REVENUE NAME
AMOUNT N'M

a)
Taxes
7,176.550
b)
Fines and Fees
3,776.215
c)
Licences
492.090
d)
Earnings And Sales
40.713
e)
Rent on Government Property
73.880
f)
Interest on Short Term Loan and Deposits
270.000
g)
Dividend
150.000
h)
Repayment
20.000
i)
Reimbursement
14.000
j)
Miscellaneous
486.552

TOTAL IGR
12,500.000
k)
State's Share of Federal Revenue
54,000.000

GRAND TOTAL
66,500.000

RECURRENT EXPENDITURE PROFILE
The total recurrent expenditure is expected to increase from the 2012 projection of N36.271 billion to N39.995 billion in the year 2013. This represents an increase of N3.72 billion or 10.27%.

The breakdown of the Recurrent Expenditure components is as follows:

N Billion % of Total Rec. Exp

1. Consolidated Revenue Fund charges 11.141 16.75

2. Personnel Costs 17.019 25.59

3. Overhead Costs 7.741 11.64

4. Subvention to Parastatals/Tertiary
Institutions 4.093 6.15

Total Recurrent Expenditure 39.995 60.13

Transfer to Capital Development Fund 26.505 39.87

Total 66.500 100.00

Of the N39.995 billion budgeted for Recurrent Expenditure,

§ N11.141 billion will be expended on Consolidated Revenue Fund Charges (which include pensions, gratuities, public debt charges and other statutory payments).

§ N17.019 billion will be used to pay the salaries and allowances of public servants

§ N7.742 billion is for overhead costs which cover the running costs of Ministries, Departments and Agencies (MDAs)

§ N4.093 billion is for subventions to parastatals and tertiary institutions.

§ The recurrent surplus of N26.505 billion will be transferred to Capital Development Fund.

CAPITAL RECEIPTS
A total Capital Receipts of N70.895 billion is expected from the following sources:

N Billion % Total Receipts

1. Opening Balance 7.000 9.87

2. Transfer to Capital Development Fund 26.505 37.39

3. Internal and External Grants 2.000 2.82

4. Internal and External Loans 10.000 14.11

5. Ecology Fund from FGN 3.000 4.23

6. Refund and Reimbursement on Capital,
Paris Club and Excess Crude 7.490 10.56

7. Value-Added Tax 5.800 8.18

8. Government Fund Raising activities,
and miscellaneous sources 9.100 12.84

TOTAL 70.895 100.00

CAPITAL EXPENDITURE HIGHLIGHTS
The total Capital Receipts in the sum of N70.895 billion will be earmarked for Capital Expenditures with sectoral allocations as follows:

N billion % of total
a. Economic Sector 22.966 32.39

b. Social Sector 13.562 19.13

c. Environmental Sector 7.531 10.62

d. General Administration 26.836 37.85

TOTAL 70.895 billion 100.00

The Economic Sector received a sizeable allocation on account of the capital intensive nature of its component sub-sectors such as Land Transport (Roads and Bridges) to which N16.172 billion has been allocated. Funds have been allocated to other key sub-sectors as follows:

· Education N10.224 billion

· MDGs Programmes and Projects
across selected sub-sectors N9.777 billion

· Finance and Investment N3.060 billion

· Environmental Development, Sewerage
and Drainage N2.483 billion

· Water Supply and Resources N2.470 billion

· Housing and Urban Development N1.407 billion

· Health N1.229 billion

· Town and Country Planning N1.086 billion

· Agriculture N1.007 billion

· Commerce and Industry N1.002 billion

· Rural Electrification N0.810 billion

KEY INTERVENTIONS TARGETTED IN 2013
The MDGs and ANIDS remain our Vision and the Strategy on which this administration revolves. Consequently, our programme and project interventions across sectors in 2013 will continue to focus on the achievement of the MDGs through ANIDS. A few programme highlights are presented below:

TRANSPORT
Given our commitment to the eradication of poverty and hunger in line with Millennium Development Goal 1, we must recognize the role of transport. The provision of access roads linking all communities and urban centres is critical. In this regard, Government will continue to open up rural areas with good roads, such as Ebenebe to Amansea, Atani to Ogwu-Ikpele, Anam to Mmiata, Awkwuzu to Igbariam and a whole lot of others in the various Local Government Areas and communities of the State. We will not relent in the effort at massive road development, which has given the State one of the best in road networks in the country.

AGRICULTURE
Agricultural development is a major contributor to the achievement of Goal No.1, having regards to employment generation and the enhancement of incomes and growth in Gross Domestic Product (GDP). As a matter of policy, the State will de-emphasize direct production of agricultural produce, and focus instead on creating an enabling environment for private sector-led development through PPP arrangements. In this sector the objectives and policy focus will centre on the attainment of food security through the following strategies:

· Land development and provision of tractors for crops production;

· Training and post training assistance to unemployed youths to establish them as Agro Service Providers;

· Provision of Agric loans; and
· Strengthening of the Agric Extension Service System and provision of various agric inputs to our farmers.

EDUCATION
In this sector, emphasis will be on programme activities aimed at consolidating efforts towards achieving Goal No.2 of the MDG and the general development of education at all levels. Activities in this regard include:

· Development and equipment of primary and secondary schools;

· Provision of science laboratory equipment to secondary schools;

· Construction and rehabilitation of more classroom blocks across communities in the State;

· Further development of the two campuses of Anambra State University;

· Further development of Nwafor Orizu College of Education, Nsugbe and College of Agriculture, Mgbakwu; and

· Payment of GCCC for the special projects of the State Universal Basic Education Board (ASUBEB).

HEALTH
In order to sustain achievements in this sub-sector which aim at achieving Goals 4, 5 and 6, a programme of action has been designed to scale up activities in all departments. In line with this, due attention will be given to the following:

· Rehabilitation and re-equipment of more General Hospitals;

· Partnership with more private and Mission owned hospitals;

· Increasing the declining size of the health workforce in the State;

· Improvement of facilities/infrastructure at various Cottage Hospitals and Primary Health Care Centres;

· Increasing Programme activities geared towards the control of HIV/AIDS and other communicable diseases;

· Provision of GCCC for World Bank and other Development Partnership-Assisted Health programmes and project;

· Strategic partnership with the Private Sector for expanded coverage in the health sub-sector;

· Partnership for Enhanced Engagement in Research (PEER) Health Programme; and

· Partnership with National Institute of Health (NIH).

ENVIRONMENTAL DEVELOPMENT, SEWERAGE AND DRAINAGES
Programmes and projects in this sector will be geared towards achieving Goal No.7. The key activities to be carried out will include:

· Completion of ongoing erosion control works in the State;

· Embarking on erosion control works at new sites;

· Procurement of more receptacles and compactors for solid waste evacuation

· Establishment of solid waste plants at two centres in the State;

· Dredging/de-silting of drains in urban areas; and

· Completion of installation of recycling machine at Amawbia

WATER SUPPLY AND RESOURCES
As part of the effort towards environmental sustainability (including provision of access to clean water and basic sanitation) which is the focus of Goal No.7, the following activities will be carried out under the Water Supply and Resources subsector:

· Rehabilitation of non-functional boreholes and some other water facilities across the State;

· Reactivation of Greater Onitsha Water Scheme; and

· Implementation of new water schemes to benefit some rural communities under the EU 10th EDF.

EXTERNALLY SUPPORTED PROGRAMMES
In line with Goals No. 8, Government will continue to expand the spectrum of collaboration with Development Partners through prompt payment of GCCC and unwavering commitment to reforms in line with International Best Practices. In this regard, we will continue to sustain and intensify our collaboration with International Development Partners/External Support Agencies such as the EU, World Bank, UNICEF, UNDP, DFID etc, which have become dependable allies in our development efforts. Anambra State is widely acknowledged as one of the States where Development Partnership programmes and activities are going well.

SECURITY
Finally, Government will not rest on its oars in the achievements it has recorded so far in the provision of security for lives and property, knowing fully well that our plans to develop our State will come to naught without adequate secuGN: justify; MARGIN: 0in 0in 0pt" class=MsoNormal>

rity. In the coming year, therefore, efforts will be intensified to:

Continue Government support to Security Agencies (Army, Navy, Police, Civil Defence etc) through provision of utility vehicles, communication equipment, cash etc.

Combat kidnapping, armed robbery and other forms of crime, to provide additional security for our citizens, as well as for local and external investors who are producing essential goods and services and creating much-needed jobs for our youths

Provide further empowerment for Vigilante Groups in the 177 communities of the State, for example through providing them with utility vehicles and cash support

CONCLUSION

My dear Ndi-Anambra, permit me to conclude this Budget speech by re-iterating the need for the co-operation of all of us in ensuring the realization of our aspirations as detailed in this Budget. I therefore appeal for your support in the implementation of this Budget which aligns with our development objectives for the benefit of our present and future generations. The civic obligation as paying taxes and levis when due, cannot ever be over-emphasized. At the end of the day, internally generated revenue will always form the core of our Fiscal Architecture.

As ever before, we require a conducive social and political environment that will greatly facilitate our development efforts in our determination to continue to take our premier position in the comity of States. It is our strong hope therefore, that law and order will continue to prevail as indispensable requirements for socio-economic development. We extend once more our appeal to citizens of this great State to support our cause as we labour towards the fulfillment of our collective destiny, with God's guidance.

Thank you and May God bless Anambra State.

PETER OBI
Governor, Anambra State