0 1 BUDGE - Delta State
Transcript of 0 1 BUDGE - Delta State
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INTRODUCTION
What is a budget?
A budget shows what the government
expects to collect as revenue, what
grants it expects to receive, how much
it expects to save or borrow and what
the government plans to spend on.
A budget document is a document that
contains details about how the
government plans to spend our
communal wealth – the taxpayers
money. Federal, State and Local
Governments all have a budget
document which is called an
Appropriation Act or Appropriation
Law as the case maybe.
In a democracy, every responsible
citizen has the right to know how
communal wealth is being expended in
the delivery of public infrastructure
and services.
What is Citizens Budget?
A Citizens Budget is a simpler, less
technical version of a government’s
budget specifically designed to present
key information that is understandable
by the general public. Citizens Budgets
can vary widely in focus, content and
length and be presented in a number of
ways, ranging from a simple brochure
to a comprehensive report. Citizens
Budget should also be accessible to the
general public including being
published online on an official state
website.
Why is Citizens Budget important?
Every citizen has the right to know
how the commonwealth of the state is
expended in the delivery of public
service. State Government must ensure
that citizens have a good understanding
of how the budget directly affects their
lives.
Citizens Budget fosters a greater
understanding of how public funds are
utilized especially if the information
presented is in a more accessible
format than the standard government
budgets.
Although they are not meant to replace
more detailed budget documents, they
are important for informing citizens
and the civil society and contribute to
the effort of increasing government
accountability on how it manages
public funds.
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BUDGET GLOSSARY
Total Budget Expenditure: This is
the total amount of budget for the given
year. It is the summation of both the
Recurrent Expenditure and Capital
Expenditure as approved by the State
House of Assembly and assented to by
the Executive Governor. This is how
the government plans to spend on
behalf of the citizens, according to the
resources it manages.
Revenue: Revenue is all the amount of
money the government believes it will
collect during the year from recurring
taxes, levies, and fees; put simply, this
refers to money collected on behalf of
citizens. States in Nigeria receive a
share of revenues collected federally
such as oil revenues, corporate income
taxes, VAT and excise duties.
These are called statutory allocation.
VAT and other statutory revenue in the
budget are transferred to the states
from the federation accounts.
Revenues that the State directly
collects and retains for its own use are
called internally generated revenue
(IGR). IGR includes personal income
taxes, road taxes, property taxes etc.
Grants: A grant is one of the
government’s source of funds for
funding ideas and projects to provide
public services, stimulate the
economy, and benefit the general
public. Grants could be either foreign
or domestic and is normally provided
for a specific project and set of
expenditures. Grants are not
borrowing/loans so do not need to be
paid back after it has been used for the
intended project and set of
expenditures.
Budget Deficit: This is generally the
difference between what the
government intends to spend on
expenditures and the revenue
generation capacity. A deficit occurs
when the expenditure figure is higher
than the revenue and grants figure. The
total budget financing is the
summation of all the financing the
government intends to raise through
borrowing/loans (domestic and
foreign), sales of government assets or
other financing items.
Loans: Another source of funds for the
government to finance the budget is a
loan. Government borrows to finance
its annual budget generally when
revenues and grants are not enough to
fund all the expenditures in the budget.
Loans could be from domestic and or
foreign sources. Loans can be for a
specific project or set of expenditures
or could be used to finance general
budget expenditures.
Why does the Government borrow?
When the government intends to spend
more money than they expect to collect
as revenue and receive in grants, the
budget is in deficit. When they intend
to spend less than what they expect to
collect in revenue and receive in
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grants, the budget is in surplus. A
balanced budget is a budget where total
revenues are equal to the total
expenditures for the year. When the
budget has an expected deficit, the
government will need to finance the
budget deficit. It can do this through
sales of government assets or through
borrowing. Borrowing can be from
banks, multilateral institutions, the
federal government or from investors
through the capital market.
Recurrent Expenditure: This refers
to recurring payments: wages and
salaries for civil servants; overhead
costs (electricity bills, purchase of
diesel); consolidated revenue account
charges; transfers (to local
government, for example); interest
payments on existing loans; and other
(subsidies, for example).
Personnel Cost: include salaries,
allowance, and other benefits that
Government pays to its workers (civil
servants).
Overhead Cost: These are any regular
expenses which are not paid directly to
a civil servant or other government
workers, including amounts billed
directly to customers. Overheads must
be paid for regularly. Examples are
electricity bills, water bills, buying
diesel for generators, or the money
spent on travelling during work, by
civil servants.
Capital Expenditure: Capital
Expenditure is money spent by
government to acquire or build fixed
capital assets, land, or intangible
assets. Capital Expenditure is how
much is used for projects like the
building of schools, hospitals, roads, or
buying security equipment. Capital
Expenditure is sometimes called
“Capex”.
Sectoral Allocation: Expenditure is
allocated to different ministries,
departments, and agencies (MDA).
Each MDA will have an approved
budget of recurrent and capital
expenditure as part of the overall
approved state government budget to
run its daily activities as well as carry
out projects associated with them,
respectively.
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HOW WILL THE GOVERNMENT SOURCE THE GRANTS?
GRANTS
N24.39bn
N4.06bn
DOMESTIC GRANTS FOREIGN GRANTS
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HOW WILL THE GOVERNMENT SOURCE THE LOANS?
LOANS
N41.86bn
N0bn
Domestic Loans Foreign Loans
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N85.30bn
N210.63bn
N56.06bn
N25.97bn
N6.00bn
Personnel Cost
Capital Cost
Overhead Cost
Consolidated Revenue Charges,
Social Contribution, Social Benefit, Domestic Loan,
Repayment, External Loan Repayment and Grants and
Contribution
Transfers Interest Payments
Other Recurrent
Expenditure
WHERE DOES THE MONEY GO?
EXPENDITURE
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Top Sector/Ministry Allocation
Personnel Cost
Overheads and Other Recurrent
Recurrent Expenditure
Capital Expenditure
Ministry of Works
343,034,766
31,400,000
374,434,766
69,659,711,358
Ministry of Basic Education and its Parastatals
25,984,804,579
1,854,499,976
27,839,304,555
14,276,377,924
Ministry of Energy
357,149,586
2,749,750,000
3,106,899,586
6,228,750,671
Delta State Capital Territory Development Agency
125,000,000 125,000,000 5,399,000,000
Ministry of Agriculture 1,462,629,543 37,200,000 1,499,829,543 2,049,462,663
Job creation office 80,000,000 80,000,000 1,000,000,000
Ministry of Trade and Investment
367,462,371
94,450,000
461,912,371
9,419,357,477
Ministry of Housing
243,825,673
64,612,136
308,437,809
8,560,627,564
Ministry of Health
13,723,565,147
721,760,000
14,445,325,147
6,209,940,132
Ministry of Urban Renewal
20,000,000
20,000,000
3,481,467,425
Ministry of Higher Education
15,179,407,494
1,407,200,000
16,586,607,494
4,458,393,693
Warri, Uvwie & Environs Development Agency
125,000,000 125,000,000 6,595,000,000
Delta State Sports Commission
1,078,321,274 1,125,000,000 2,203,321,274 1,878,065,000
Ministry of Youth Development
150,287,106
103,500,000
253,787,106
1,269,196,846
Ministry of Technical Education
474,500,000
474,500,000
5,681,064,546
Ministry of Water Resources
842,564,505
73,483,940
916,048,445
1,892,971,962
Directorate of Culture & Tourism
480,390,712
103,775,000
584,165,712
979,500,000
Total Budgeted Expenditure
85,303,761,431
88,025,065,137
173,328,826,568
210,625,771,321
TOP SECTORAL ALLOCATIONS
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Project Line
Ministry/Agency Location(s) LGA Amount
Agro-Industrial Park Ministry of Trade & Investment
Aboh-Ogwashi
Aniocha South
4,000,000,000
Construction of 19 New Technical Colleges in the State
Ministry of Technical Education State wide State wide
3,800,000,000
Constituency Projects (DTHA)
Ministry of Basic and Secondary Education State wide State wide
3,000,000,000
Renovation/Rehabilitation/Construction of Public Primary & Secondary Schools Across the State including Water and Toilets.
Ministry of Basic and Secondary Education State wide State wide
2,500,000,000
Construction of New Roads/Development of Asaba & Environs
Delta State Capital Territory Development Agency Asaba
Oshimili South
2,200,000,000
Construction of Trans Warri - Ode-Itsekiri Bridges and Access Roads Phase I: Section I Ubeji to Ode-Itsekiri Roundabout with Spurs to Ijala Ugbodede, Orugbo and Ajigba - Inorin - Usele Communities and Section II (iii) Ode-Itsekiri Internal Roads Ministry of Works
Ode-Itsekiri
Warri South
2,000,000,000
Construction of Ewu Bridge across Orere River, Ughelli South LGA Ministry of Works Ewu
Ughelli South
2,000,000,000
Development of New Central Secretariat Complex. Ministry of Housing Asaba
Oshimili South
2,000,000,000
Construction of New Roads in Warri, Uvwie and Environs
Warri, Uvwie and Environs Development Agency LG Wide
Warri South & Uvwie
2,000,000,000
Construction of Storm Water Discharge Channels and Erosion Control Measures for Warri and Uvwie
Warri, Uvwie and Environs Development Agency LG Wide
Warri South & Uvwie
2,000,000,000
Dualisation of Ughelli-Asaba Road, (Sector A). Ministry of Works State wide State wide
1,500,000,000
Completion of the Dualisation of Ughelli-Asaba Road (Sector C2) Ministry of Works State wide State wide
1,500,000,000
Ughelli Asaba Road Interchange Ministry of Works State wide State wide 1,500,000,000
TOP CAPITAL ALLOCATIONS
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Payment for ongoing and completed projects Ministry of Works State wide State wide
1,400,000,000
Special Projects
Ministry of Basic and Secondary Education State wide State wide
1,400,000,000
Widening of Warri/Sapele Road. Phase I: from Effurun Roundabout to Enerhen Junction (Warri Bus Rapid TRansit (BRT) Project) Ministry of Works Effurun Uvwie
1,200,000,000
Construction of Roads in Delta North Senatorial District Ministry of Works
Delta North
LGAs in Delta North
1,200,000,000
Construction of Roads in Delta South Senatorial District Ministry of Works
Delta South
LGAs in Delta South
1,200,000,000
Construction of Roads in Delta Central Senatorial District Ministry of Works
Delta Central
LGAs in Delta Central
1,200,000,000
Establishment of Kwale Industrial Park
Ministry of Trade & Investment Kwale
Ndokwa-West
1,000,000,000
Ogheye Floating Market, Warri North
Ministry of Trade & Investment Ogheye
Warri North
1,000,000,000
Construction of Ayakoromor Bridge across River Forcados, Ayakoromor Ministry of Works
Ayakoromor Burutu
1,000,000,000
Completion of the Dualisation of Ughelli/Asaba Road (Sector C1: Km 92 + 000 to Km117 + 000, Ossissa to Kwale Junction, Ogwashi-Uku) Ministry of Works State wide State wide
1,000,000,000
Social Housing Development Scheme across the State (Pilot Scheme) Ministry of Housing State wide State wide
1,000,000,000
Special Upgrade of Tertiary Institutions
Ministry of Higher Education State wide State wide
1,000,000,000
Construction of Kwale-Beneku bridge and approach roads in Ndokwa West and Ndokwa-East LGA Ministry of Works
Kwale-Beneku
Ndokwa East
830,424,722
Construction of Idumebor Internal Roads Ministry of Works Idumebor
Ika North East
800,000,000
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TOP 4 CAPITAL PROJECTS
CONSTRUCTION OF NEW ROADS/
DEVELOPMENT OF ASABA AND
ENVIRONS
N2.2 bn AGRO-INDUSTRIAL PARK
ABOH - OGWASHI
N4.0 bn
CONSTRUCTION OF 19 NEW
TECHNICAL COLLEGES IN THE
STATE
RENOVATION/REHABILITATION/
CONSTRUCTION OF PUBLIC
PRIMARY & SECONDARY SCHOOLS
ACROSS THE STATE INCLUDING
WATER AND TOILETS
N2.5 bn N3.8 bn
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The citizens have the following roles to play in the budget implementation process:
▪ Monitoring of government projects and reporting of observations that require
government interventions.
▪ Channelling of grievances to appropriate government agencies and not take
laws into your hands.
▪ Protection of public facilities including oil and gas installations.
▪ Provision of information to security agencies when there is breach of the peace
in any community.
▪ Regular payment of taxes and other relevant rates
▪ Reporting community needs to government irrespective of where the needs are
situated. Such reports should be addressed to His Excellency, the Governor
through the Ministry of Economic of Planning, Asaba. This should be best done
before a budget preparation process is concluded for every fiscal year.
THE ROLE OF CITIZENS
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CONTACT US: Budget Department
Olorogun Felix Ibru Secretariat
Asaba
Delta State. Website: www.deltastate.gov.ng
Help desk: 08033521915