Review Of The Preformance Of 2017 Budget (january – September)
Before unveiling the details of the 2018 budget proposal, please permit me, Mr Speaker, to do a brief review of the 2017 approved budget.
REVIEW OF THE PREFORMANCE OF 2017 BUDGET (January – September)
Mr Speaker, a review of the 2017 approved budget shows that the budget size was based on revenue projections from the State’s Fiscal Strategy Paper (FSP), which is a key element in the Medium Term Economic Framework (MTEF) and annual budget process that determines the aggregate resources available to fund the Government’s projects and programmes from a fiscally sustainable perspective. The profile of the 2017 budget is as follows:
(A) REVENUE.
S/N
Sources
Approved 2017 Budget
% Appropriation
I
Internally Generated Revenue
70,165,959,503
23.83
Ii
Statutory Allocation Including Mineral Revenue Derivation
148,939,012,121
50.58
Iii
Value Added Tax
10,515,786,230
3.57
Iv
Other Capital Receipts
64,836,282,623
22.02
Total
294,457,040,472
100.00
(B) EXPENDITURE
S/N
Details
Approved 2017 Budget
% Appropriation
I
Recurrent Expenditure
158,013,660,828
57.16
Ii
Capital Expenditure
136,443,379,649.
42.84
Total
294,457,040,472
100.00
(A) REVENUE
S/N
Sources
Approved 2017 Budget
% Appropriation
I
Internally Generated Revenue
70,165,959,503
23.83
Ii
Statutory Allocation Including Mineral Revenue Derivation
148,939,012,121
50.58
Iii
Value Added Tax
10,515,786,230
3.57
Iv
Other Capital Receipts
64,836,282,623
22.02
Total
294,457,040,477
100.00
(B) EXPENDITUERE
S/N
Details
Approved 2016 Budget
% Appropriation
I
Recurrent Expenditure
158,013,660,828
53.66
Ii
Capital Expenditure
136,443,379,649
46.34
Total
294,457,040,477
100.00
BUDGET PERFORMANCE (JANUARY TO SEPTEMBER, 2017): REVENUES
The State Government, during the period under review generated N127.1b, representing a performance of 57.5% over the expected proportionate revenue receipts of N220.8b. Out of this amount, the sum of N83.6b was received as Statutory Allocation from the Federation Account. The amount represents 74.9% performance over the proportionate estimate of N111.7b.
On the other hand, the sum of N8.3b was recorded as receipts from Value Added Tax (VAT) out of the proportionate projected estimates of N7.8b, representing a budget performance of 106.21% for the period under review.
The sum of N35.0b was recorded as Internally Generated Revenue (IGR) out of the proportionate projected revenue of N52.6bn, representing a budget performance of 66.67%.
The breakdown of the revenue receipts for the period January – September, 2017 from individual revenue sources is summarized hereunder:
BUDGET PERFORMANCE (JANUARY TO SEPTEMBER, 2017): EXPENDITURES.
Our expenditure profile for January to September, 2017 shows that the total sum of N127.0b was spent. Out of this amount, the sum of N104.2b was incurred on recurrent items, as against a proportionate approved budget of N118.5bn, representing a budget performance of 87.97%. The breakdown of the recurrent expenditure is summarized below:
The sum of N136.4b was budgeted for Capital Expenditure. During the period under review (January - September, 2017), the sum of N22.7b was spent against the proportionate budget figure of N68.2b, which represents a performance of 33.41%. This is, however, not a true reflection of the level of jobs accomplished/completed within the comparable period, which stands at about 47.05%. We were constrained by our cash flow and weather conditions. We, however, look forth to a better 4th Quarter with improved funding.