The Rivers State Governor, Nyesom Wike on Monday preeent d the 2019 budget proposal of the state to the State House of Assembly.
The budget which sums up to NN480billion is christened “Budget of Sustainable Growth and Development.”
The
governor used the opportunity to X-ray the achievements of his
administration based on the 2018 budget and that of his government
generally from inception.
The budget proposal speech obtained by Suanu’s Blog is presented below:
Mr. Speaker, Honourable Members, distinguished guests, ladies and gentlemen.
2.
I thank God for the opportunity, once again, to present this budget
address as the Governor of our State. I am most grateful to the people
of Rivers State for the honour and privilege of piloting the affairs of
the State for the last three and half years.
3. Mr. Speaker,
this is the last budget statement of our administration before the end
of our first term in office. Permit me therefore to take a few moments
to reflect on our performance.
4. Never for a moment did we
betray this trust; neither did we take the interest of our people for
granted. We’ve remained faithful, truthful and just to their aspirations
and even those who never gave us a chance when we started now admit
that we’ve done well and believe strongly that things can only get
better for our State under our watch.
5. When we came in
three and half years ago, we met a State that was literarily on its
knees: physically battered, economically raped and psychologically
traumatized.
6. But we came in with a clear vision and
mission: a vision to repair and renew the promise of our State; a
mission to pull our people from the cesspool of despair and restore our
hopes for brighter future.
7. Three and half years after, we have substantially achieved our commitments on all directions of human advancement.
8. Under our watch, Rivers State has emerged from the brink of economic disaster to an era of fiscal sustainability.
9.
Today, our Gross Domestic product has increased and our economy is
growing at a rate above the national average and attracting new
investments even when the national economy continues to be weak, wobbly
and troubling.
10. Under our guardianship, we have invested at
record levels to provide critical social and economic infrastructure
across the State; especially roads, schools, and health facilities.
11. In the process, we created hundreds of thousands of jobs across the construction value chain.
12. We supported small businesses with interest free loans, tax
moratoriums and other tangible investment incentives. Today, Rivers
State has become economically competitive and businesses, including new
start-ups, are responding positively to the improved investment
conditions in the State.
13. We prioritized the construction
and expansion of road infrastructure and today, we have successfully
delivered over 1600 kilometers of roads across the State.
14.
Three and half years ago, we could hardly find any tarred street without
deep cracks and potholes across the State. Today, that has become a
thing of the past.
15. There is no Local Government Area we
have not reached; no State or Federal Constituency we have not touched;
and no Senatorial District we have not positively affected with our
development policies, programmes and projects.
16. In the areas
of urban renewal and rural development, we have constructed and
reconstructed several roads in Port Harcourt city, Obio/Akpor Local
Government Area, Omoku, Elele, Isiokpo, Okochiri, Ogbunabali, and Amadi
Ama communities.
17. The numerous roads and other social
amenities, including water, electricity, jetties, land reclamation we
have provided are boosting socio-economic activities and improving the
wellbeing of our people in several of our rustic and hitherto neglected
communities across the State.
18. It is a thing of joy and
profound sense of fulfillment that for the first time in history the
people of Opobo can now access other parts of the State on a tarred road
as a result of our efforts to fulfill our promise.
19. As
critical components of human capital development education and
healthcare delivery also received appreciable attention in the last
three and half years of our administration.
20. We have
comprehensively rehabilitated, furnished and equipped over 180 basic
education schools through the State’s Universal Basic Education Board.
21.
Also, several secondary schools have been rebuilt and expanded while a
lot more are presently undergoing total reconstruction and
rehabilitation.
22. In 2018 we trained over 1000 teachers on
21st century education skills to improve the quality of teaching and
delivery of lesson notes in our basic education schools. More teachers
will be trained in the course of 2019.
23. Furthermore, we have
expanded access and improved quality in all our tertiary institutions.
New faculties buildings, have been built and equipped for the Rivers
State University; the Ignatius Ajuru University of Education and also in
the two State-owned Polytechnics.
24. We also provided grants
to all the tertiary institutions to upgrade their facilities, upwardly
adjusted the salary structure of both teaching and non-teaching staff of
our universities and ensured the regular payment of staff salaries.
25.
Furthermore, the School of Midwifery has been comprehensively
rehabilitated while the College of Nursing and that of Health Technology
have been listed for reconstruction in the next fiscal year.
26.
With respect to healthcare, we are gradually getting closer to
actualizing our commitment to providing an affordable, effective and
efficient healthcare delivery system for our people.
27. To
this end, the 13 general hospitals and the mother and child hospital we
have comprehensively rehabilitated and or constructed will soon be
equipped and put to effective use.
28. We are transforming and
equipping the Braithwaite Memorial Hospital with the most advanced
diagnostic and other equipment for the treatment of hearth, liver and
kidney diseases.
29. We are also going on with the construction
of the regional referral hospitals we inherited from the previous
administration to bring access to tertiary healthcare closer to our
people.
30. Finally, we also fought and reduced the monstrous
heights of insecurity and our State is today reckoned as one of the most
peaceful, safe and secure States in the country.
31. Mr.
Speaker, these are just highlights of some of the development strides we
recorded in the last three and half years of our administration to lay,
strengthen and consolidate the foundations for the future of our State.
32.
Collectively, we are all focused and committed to building a State
where no one or section is left out from the benefits of progress; a
society where everyone has a fair chance to pursue set goals and realize
their potential; a society where everyone is educated, economically
empowered and physically secured enough to live a peaceful, fulfilling,
healthy, and meaningful life.
33. But as you know, social transformation is like a journey; it takes time to fully manifest and benefit the entire populace.
34.
Yes, we have made significant progress in the last three and half
years of our administration. But there is still a lot to be done to get
to where we want our State to be.
2018 BUDGET PERFORMANCE REVIEW
35.
Mr. Speaker, Honourable Members, and distinguished guests. In the
2018 fiscal year, the projected revenue for the State was
510,000,000,000.00 (Five Hundred and Ten Billion Naira) only.
36.
Out of this sum 152,000,000,000.00 (One hundred and fifty-two billion
was projected from internal generated revenue, (IGR) while statutory
allocation (FAAC) was estimated at N210, 000,000.000.00 (Two Hundred and
Ten Billion naira) only. Therefore aggregate projected revenue from IGR
and FAAC was N362, 000,000,000.00 only.
37. We also projected to source the sum of N148, 000,000,000.00 from other sources, including internal and external loans.
38.
As at November 2018 total revenue receipts from all sources (except
internal and external loans) stood at 288,721,423,336. This represents
about 79 per cent performance on the revenue side with respect to the
totally projected IGR and FAAC receipts for 2018.
39. It is
worthy of note that while internally generated revenue for 2018 improved
marginally over that of 2017, what was realized was about 32 per cent
less than the total amount projected for the fiscal year 2018.
40.
This means that we still have serious challenges in meeting our IGR
targets, a situation we must collectively find ways to overcome if we
must deliver on our development targets to the people.
41. On
our part, we shall continue with our efforts to stimulate economic
growth, diversify the economy and attract more investments to shore up
the State’s revenue base.
42. It is also worthy of note that
the 2018 budget was financed principally from proceeds from IGR, FAAC,
Paris Club Refund and dividends from the State’s stock portfolio. We
literally refused to borrow in order to encourage us to live within our
means as well as achieve appreciable levels of fiscal sustainability.
43.
On the expenditure side, we prudently managed and applied the
available resources to deliver on the mandates of the 2018 budget.
44.
For instance, in spite of the shortfall in aggregate revenue, we
substantially funded our recurrent expenditure, including the regular
payment of salaries, pensions and the release of overheads to
ministries, departments and extra-ministerial agencies (MDAs).
45.
Also, aggregate capital releases to MDAs as at November stood at over
65 per cent of the total capital expenditure. As you may have noticed,
we completed and delivered over 30 capital projects in 2018 during the
3rd anniversary of our administration, including:
· Slaughter – Trans Amadi – Garrison road;
· Abuloma – Woji – Elelenwo – Akpajo
· Obiri ikwerre – Airport road;
· Elele Alimini internal roads;
· Omoku internal roads;
· Cardinal Jim Rex-Lawson Cultural Centre;
· Amadi Ama internal roads;
· Dr. Peter Odili Doctors’ Quarters (BMSH);
· Chief Emmanuel Aguma House;
· Dame Patience Jonathan road (former creek road);
· Bishop Johnson Street;
· Captain Amangala Street;
· Tourist Beach road;
· Birabi Memorial Grammar School, Bori;
· General Sanni Abacha Road;
· Mbuoshimi Community Health Centre;
· Mgboshimini Community Primary School;
· P.G. Warmate House (Former Waterlines Building);
· Ozuaha – Ipo – Omademe road;
· Traditional Council Secretariat;
· National Industrial Court Building;
· Court of Appeal Building;
· Okochiri Internal roads;
· Isiokpo internal roads (phase 1);
· 24 nos 3 Bedroom flats for civil servants;
· Government Girls Secondary School, Rumuokuta;
· Nyemoni Grammar School, Abonnema;
· Government Secondary School, Onne;
· Faculty of Sciences and Technical Education building, Rivers State University;
· Faculty of Management Sciences building, Rivers State University;
· Faculty of Medical Sciences Building, Rivers State University;
· SUBEB Head Office complex, Port Harcourt; and
· Ogbunabali internal roads
46.
From all assessments the policy objectives of the 2018 budget circle
on expenditure targeting, spending prioritization and effective
implementation were substantially achieved.
ECONOMIC AND FISCAL OUTLOOK FOR 2019
47. Mr. Speaker, few days ago, Mr. President told a nation in distraught that the national economy is in real bad shape.
48.
Mr. President’s frank but hopeless assessment of the national economy
was predicated on the continuous decline in national revenue, which has
created uncertainty in the country’s fiscal conditions.
49.
Ordinarily, we should all be worried over the gloomy picture of the
national economy because the health of our economy is tied substantially
to the strength of the national economy.
50. However, we have
taken adequate measures to guarantee the medium and long-term
sustainability of our economy and reduce the State’s exposure to the
shocks and volatilities of the national economy, except if it goes on a
free fall.
51. Against this background, I wish to assure us
that no matter what happens to the economy at the national level, the
growth outlook for our State’s economy remains positive in the short to
medium term.
52. We shall continue to reset our economy by
maintaining expansionary fiscal approach, prioritizing investments in
critical socio-economic infrastructure and taking appropriate measures
to boost revenue generation to meet our development objectives,
priorities and targets.
THE 2019 BUDGET ESTIMATES
53.
Mr. Speaker, Honourable Members; the projected revenue for Rivers State
for the 2019 Fiscal Year is N480, 000,000,000.00 (Four Hundred and
Eighty Billion Naira) only.
54. The budget is based on the following assumptions:
(i)
an oil price bench mark of 55 United States Dollars
per barrel, which is 5 dollars lower than that of the Federal
Government; and
(ii) an oil production rate
2,000,000 barrels per day, as against the Federal Government’s
2,300,000.000 barrels per day; and
(iii) an inflation rate of 10.9 per cent as against the Federal Government’s 9.9 per cent.
55.
The strategic thrust for the 2019 budget is to promote economic
growth and diversification, create jobs and reduce unemployment; take as
many of our people out of poverty and improve the standard of living of
Rivers State.
56. To this end, we shall be doing the following specific things:
(i)
prioritize investments in agriculture and encourage,
train and support our youths to go into commercial farming;
(ii) support small and medium businesses to invest in the State and create jobs;
(iii)
continue to prioritize and invest in human capital
development and guarantee robust access to basic social services such
as, education, healthcare, social housing, water and sanitation;
(iv) continue to keep Rivers State peaceful, safe and secure;
(v)
continue to prioritized investments in the provision
and expansion of transport infrastructure, including roads, bridges and
jetties.
57. Against this background, the 2019 Budget is aptly christened: “Budget of Sustainable Growth and Development.”
FINANCING THE 2019 BUDGET
58.
Mr. Speaker, Honourable Members, distinguished guests, ladies and
gentlemen, funding for the 2019 budget will be from the following
sources:
S/N
Source
Projected revenue
1
Internally Generated Revenue
N120, 492,891,302.00
2
Statutory Allocation
N73, 169,813,022.00
3
13% oil minerals fund
N145, 070,991,780.00
4
Value Added Tax
N26, 377,628,543.00
5
Refunds
N27, 337,926,155.08
6
Local Credits
N45, 000,000,000.00
7
International Credits
N30, 000,000,000.00
8
Capital receipts
N300, 000,000.00
9
Exchange gain
N8, 000,000,000.00
10
Prior year Balance
N4, 662,073,844.92
11
TOTAL
N480, 411,324,647,00
59.
At about 28.39 per cent of total revenue, Oil Mineral funds is the
largest contributor to the budget and what is proposed in the 2019
budget represents a significant increase from that of 2018 as we expect
the Federal Government to implement the recent judgment on the upward
review of our entitlements under the relevant Production Sharing
Agreements.
60. The IGR is the second highest contributor to
the budget as the sum proposed represents about 25 per cent of the total
budget.
61. We decided to be as realistic as possible with our
IGR projections because over the years we have been unable to match our
revenue potential with actuality.
62. Nevertheless, we are
encouraged by the constant improvements we have recorded year in, year
out to continue with our drive to generate more revenue from alternative
internal sources to fund substantial parts of our budget.
63.
While we may not introduce new taxes and levies in 2019, I have directed
the State’s Internal Revenue Service to plug all existing tax
loopholes, crack down on tax defaulters and ensure full implementation
of our revenue laws to shore up our IGR collections.
64.
Furthermore, in addition to balancing the fairness of the tax system to
enhance compliance, we will also continue with our efforts to increase
the efficiency of revenue collection from both existing and other
potential sources.
65. The third most viable contributor to our
budget is statutory allocation. Here, our projection is over 28 billion
more than that of 2018 based on the assumptions of the Federal
Government. However, we are mindful of the fact that this is a revenue
item we have no control whatsoever over what can accrue to the State.
66.
Finally, we have substantially reduced our intention to fund the 2019
budget with borrowed funds in line with our policy of balancing our
budget and reducing deficits to sustain the impetus towards fiscal
responsibility.
PROPOSED EXPENDITURE
67. Mr. Speaker, the proposed revenue for 2019 fiscal year will be spent as follows:
(1) Recurrent Expenditure – N157, 122,354,564.15
(2) Capital Expenditure – N323, 288,970,085.00
RECURRENT EXPENDITURE
68. The Recurrent Expenditure will be spent as follows:
S/N
Expenditure Item
Amount
1.
Personnel Emolument
N79, 585,058,808.60
2.
Overhead
17, 025,380,000.00
3.
Pension
33,000,000,000.00
4.
Others
27,511,915,255.55
69.
A substantial part of the recurrent budget proposed for 2019 is for
the payment of staff salaries and overheads to ministries, departments
and agencies to enable them effectively discharge their responsibilities
to the people.
70. The personnel cost of N79,
585,058,808.60 alone constitutes about 50 per cent of the entire
recurrent expenditure. The increase in the figure for 2019 is as a
result of the need to provide for the anticipated increase in the
minimum wage for civil servants.
71. With this, the
State Government will be in a position to pay the minimum wage whenever
the National Assembly approves it. We also made provisions for staff
promotion arrears and new recruitments into the State’s civil service.
72.
The sum of 33,000,000,000.00 is proposed for the settlement of
pension liabilities. The challenge about the plight of pensioners has
lingered for too long and we are determined to tackle it this time
around. Certainly, our senior citizens deserve better treatment than
what they are presently getting.
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