The Kaduna State Government has spent N181.6 billion from January to September, representing 64 percent budget performance of the N279.6 billion revised budget for 2022.
This is contained in the Third Quarter2022 Budget Performance Report produced by the Office of Accountant-General with support of the Planning and Budget Commission.
The report, which came in Kaduna on Tuesday shows that of the amount, N117.5 billion was spent on capital projects.
This represents 63.5 percent of the N185.1 billion allocated for capital projects in the 2022 budget, leaving a variance of N67.6 billion.
Similarly, N64.3 billion was spent on recurrent expenditure, representing 67.8 percent performance of the total N94.5 billion recurrent budget for the year, with a variance of N30.4 billion.
On revenue, the report shows that N188.4 billion was realised as revenue within the period, representing 67.3 percent revenue performance for the year, leaving a variance of N91.3 billion.
Of the N188.4 billion revenues, N38.9 billion was Internally Generated Revenue (IGR) with N7.4 billion collected in the first quarter, N16.7 billion in the second quarter and N14.8 billion in the third quarter.
The N38.9 billion IGR represents 55.2 percent of the N70.5 billion IGR target for the year, leaving a variance of N31.6 billion.
The report blamed low IGR collection to non-full implementation of new law on Development Levies, and noncompletion of shops in most of the markets.
It added that there was equally a low collection of tuition fees in the state’s tertiary institutions due to a hike in fees and prolonged strike action by the Academic Staff Union of Universities.
It also blamed the low performance on pending approvals for regularisation of several undocumented layouts, and high cost of land re-certification among other economic factors.
Also, a total of N64.2 billion was received as the government share of the Federation Allocation Account Committee, representing 77.1 percent performance of the N83.2 billion targeted for the year.
A total of N42.6 billion was received as Capital Receipts, representing 51.1 percent performance of the N83.6 billion target for the years.
The N42.6 billion was made up of N21.9 billion aids and grants, representing 44.7 percent performance against the 49.1 billion target and N20.7 billion representing 60.3 percent against the N34.3 billion target.
The report indicates that the low performance resulted from the global economic recession which has affected both external and domestic donor partner-funded programmes.
Further analysis of the budget shows that the Ministry for Finance has the highest budget performance of N34.1 billion representing 94 percent of the n36.3 billion allocated leaving a variance of N2.2 billion.
This was followed by the Ministry for Public Works and Infrastructure which spent N28.1 billion within the period, representing 86.8 percent of the N32.5 billion total allocation to the sector.
It was followed by the health sector, where a total of N22 billion was spent out of the N38 billion allocated for the year representing 57.8 percent performance leaving a variance of N16 billion.
The education sector trailed behind with 53.4 percent performance after spending N35.4 billion of the N66.4 billion allocation, leaving a variance of N30.9 billion.
Commenting on the development, Mr. Yusuf Goje, Coalition of Association for Leadership Peace Empowerment and Development (CALPED), observed that most of the revenue targets were lagging the 75 percent benchmark in the third quarter.
Goje, the Head of Leadership, Governance and Advocacy of the organisation. pointed out that the poor revenue generation has affected both the capital and recurrent expenditure, which stood at 63.5 and 67.8 percent respectively.
“This brought to the fore the issue of budget realism, which has remained an issue in Kaduna state where the annual budget is always above the recommendation of the Medium-Term Expenditure Framework.
“This is very unfortunate because we are not expecting a dramatic increase in spending in the 4th quarter because of the 2023 political activities that would distract the governance processes.
“This is a cause for concern because if we are not sure of generating the needed revenues to fully implement a N279.6 billion 2022 budget, how do we expect the 2023 budget of N370.3 billion will fare? he asked.
Describing revenues as a “critical component” of the budget circle, Goje advised the government to increase its taxpayers net and find creative ways to increase its revenue performance.
He explained that the government can leverage on political campaigns and economic activities within this period to increase its revenue generation.
In another development, the Kebbi State Governor, Atiku Bagudu, has approved the release of N2.57 billion for payment of two years leave grants of 2021 and 2022 for the workers of the state, local governments and Local Education Authorities (LGEAs).
The approval is contained in a statement signed by the Commissioner of Finance, Alhaji Ibrahim Muhammad-Augie and made available to newsmen in Birnin Kebbi on Monday.
“Kebbi Government, under the leadership of Gov. Atiku Bagudu, has regularly met its obligations on human resource entitlements for its serving and retired workers.
“This fact was attested to by both the state and national chapters of the Nigerian Labour Congresses (NLC) during their nationwide rally held in Birnin Kebbi recently.
“Kebbi state under the leadership of Gov. Atiku Bagudu is among the few elite states with the best track records on staff welfare and development.
” All salaries, pensions, gratuity, leave grants, promotions, advancements, and training have been regularly maintained by the administration from inception in 2015 to date,” it said.
The statement reported the commissioner as calling on workers in the state to compliment the efforts of the government.
“This is by always putting their best to be dutiful, loyal and hardworking, to help government deliver on all the excellent Programmes pursued in uplifting the overall development of the state to greater heights,” the statement said.
