Jigawa Gov’t budgets N177.7 billion for 2022 fiscal year

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Jigawa Gov’t budgets N177.7 billion for 2022 fiscal year

The Jigawa State Government has budgeted N177.78 billion for the services of the state in the 2022 fiscal year.

While this surpassed the 2021 original budget by about 13.5 per cent or about N21.2 billion, it is almost equal in size with two appropriations made during the year, that is taking the supplementary budget into account.

The aggregate expenditure components of the proposed budget consist of:

(i)  Recurrent Expenditure – N83,118,588,000

(ii)  Capital Investments – N91,142,000,000

(iii) Contingency and Stabilization Funds – N3,535,000,000

The budget tagged “Budget of Consolidation for Sustainable Development”, was higher than the proposed estimate of recurrent, with 32 per cent of the budget going to the education sector, followed by health with 23.7 per cent.

Speaking while presenting the budget on the floor of the Jigawa State House of Assembly, Governor Muhammad Badaru Abubakar stated that it is noteworthy that over 51 per cent of the proposed budget is in favour of capital investments through which they planned to deliver most of the budgetary outputs required to achieve most of the policy objectives of the budget.

2022 Proposed Revenue Estimates

Out of the total projected revenue, it is envisaged that almost 68 per cent, amounting to almost N120.75 billion, would accrue from recurrent revenue, sources including Federal Transfers, Internally Generated Revenues and other Recurrent Reimbursements.

The balance of N57.046 billion representing about 32 per cent is expected to accrue from various capital receipts including the 2022 Opening Balance. A rundown of all the major revenue sources for the financing of the proposed budget is given as follows:

(i) Internally Generated Revenue – N29,806,000,00

(ii) Statutory Allocation, VAT and Other Fed. Transfers – N66,800,000,000

(iii) Local Govt. Contribution to Pri. Edu. and PHC. Staff Costs – N24,143,588,000

(iv) Opening Balance for the 2022 Fiscal Year – N6,000,000,000

(v) Internal and External Loans – N21,730,000,000

(vi) Other Capital Receipts, Grants and Reimbursements – N29,361,000,000.

Based on the breakdown just provided, it is envisaged that the Federal Transfers comprising of Statutory Allocation, Value Added Tax and other non-regular ancillary receipts, would fund close to two-fifths of the total expenditure outlay.

The initial fiscal assumption and macroeconomic indicators used in the MTEF Revenue Forecasting Model based on which Sector Envelops and Budget Ceiling were provided to the Sectors and MDAs, were subsequently modified and harmonized with the indices adopted by the Federal Government in the final proposed estimates for the year 2022. These parameters which were also linked to the Economic and Fiscal Updates and the Fiscal Strategy Paper included:

A National Inflation Rate of 13 per cent, Oil Production and Price levels at 1.88 mbd and $57/b respectively; National GDP Growth Rate of 4.2 per cent; Official Exchange Rate N410:1US$; and Mineral Ratio of 15 per cent.

The proposed Internal Revenue Estimates amount to about N29.81 billion equivalent to almost 17 per cent of the total projected income for the year.

The estimates were largely based on a medium-term revenue strategy developed by the MDAs which is also in line with the provisions of the State Tax Policy developed earlier in the year. Primarily, the Tax Policy aims to facilitate the attainment of our fiscal objectives by ensuring orderly development of the State’s internal revenue administration for optimal performance.

The proposed IGR is believed to be very realistic as it is based on an informed basis that takes into account the medium-term outlook and potentials within each sector. In this regard, I would like to inform the Legislators that we intend to review Law No.4 of 2019 titled “Jigawa State Revenue (codification and consolidation) in order to strengthen it in line with the objectives of the State Tax Policy. Suffice it to add that the proposed IGR consists of State Taxes collectable by the State Internal Revenue Service, Other IGR in form of earnings and sales, fines & fees, rents, stamp duties and other recurrent reimbursements to the State Government.

The Speaker of the House, Honourable Idris Garba Jahun assured Badaru of a speedy passage of the budget for you a prompt implementation.

Jigawa Gov’t budgets N177.7 billion for 2022 fiscal year

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