2022 Bauchi budget proposal based on assumptions of crude oil of $57 per barrel


Bauchi State Commissioner of Budget and Economic Planning, Aminu Hammayo giving breakdown of the 2022 Budget proposal

By Akanji Alowolodu, Bauchi

Bauchi State Commissioner of Budget and Economic Planning, Aminu Hammayo has disclosed that the year 2022 budget was prepared based on the Medium-Term Expenditure Framework (MTEF) in compliance with Bauchi State Fiscal Responsibility Law (2009) and the National Format and Chart of Accounts. 
He explained that the system was adopted in order to improve the quality of financial reporting in line with the International Public-Sector Accounting Standards (IPSAS). 
The Commissioner who gave the budget breakdown to Journalists in his office, added that the 2022 Budget has been predicated on the national assumptions of oil production of 1.88 million barrels per day;  bench mark oil price of 57 US dollars per barrel; an exchange rate of N410.15 to the US dollar and an improved and efficient system of internally generated revenue collection.
He also said that Government has in the course of the preparation of the 2022 Budget taken the some measures into consideration to Ensure the completion of on-going projects only.
He added that Propose new projects only on the basis of critical need and the immediate impact it would make on the lives of the people and Ensure reduction in non-essential overheads. 
He further said that Compliance with Budget guidelines issued by the Nigerian Governors Forum to ensure peer review and comparability as well as Maintenance of critical spending on core Government services.
Also considered is Compliance with debt servicing or repayment agreements in order to meet up government obligations; application of loans only to finance critical capital expenditure projects and target favourable sources of Capital Receipts and financing such as Aids and Grants, PPP. 
While giving summary of the budget, Aminu Hammayo said that the Opening Balance  is the sum of                              N15,887,944,508.50 while Recurrent Revenue includes                                        Government Share of FAAC (Statutory Revenue), N83,046,428,845.16. 
He also said that Statutory Allocation is the sum of N66,938,107,747.96; VAT        is the sum of N15,608,321,097.20; Excess Crude is the sum of N500,000,000.00 while Independent Revenue   is the sum of                                N24,494,940,252.97 totaling the sum of N107,541,369,098.13
The Recurrent Expenditure include Personnel Cost of the sum of                    N37,004,732,226.41 while Other Recurrent Cost amount to the sum of N47,730,448,292.17  which when put together will give the sum of N84,735,180,518.58. 
The capital receipt includes Aid & Grants to the sum of                                            N27,035,467,936.04 while Capital Development Fund Receipts made up of   Loans (Internal/External) is the sum of N38,469,244,993.57 got (Mainly FMFB&NP -CBN Bridging Facility to All States/BOI/NEXIM/ACReSALNG-Cares World Bank Programme/RAAMP etc)
Other Capital Receipts  are the sum of N6,421,580,607.60; N44,890,825,601.17 and  N71,926,293,537.21               Capital Expenditure is the sum of           N110,620,426,625.27 while total revenue is the sum of                                N195,355,607,143.85 which gave the total sum of N195,355,607,143.85. 
The top allocation of the 2022 Budget includes: Ministry of Works (including SDB) N43,544,415,883 – 22.3%;Ministry of Education                        N29,931,349,786 – 15.3%Ministry of Finance,            N23,610,099,620, 12.1%;Ministry of Health                              N20,525,872,019   10.5%  (Effectively Health is more than 16% taking allocations for water, sanitation & others Health related Expenditures in other MDAs)
The capital Expenditure by sector showed that administrative sector got the  sun of N7,485,890,598.00; ECONOMIC SECTOR,            N56,974,814,524.57;LAW AND JUSTICE SECTOR          N1,860,000,000.00REGIONAL SECTOR              N13,967,626,982.33SOCIAL SECTOR                         N30,232,094,520.37 making a total of N110,620,426,625.27
The Commissioner explained that the Ratio of Capital Expenditure to Recurrent Expenditure is 57%:43% pointing out that the 2022 proposed Budget is 8.5% lower than that of the 2021 year.
According to him, The reduction was arrived at in order to align government projections with the current economic realities especially related to its ability to meet anticipated revenues saying that, “This conservative approach was adopted to ensure that projects and programmes captured are implemented”.

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