The Kebbi state governor, Abubakar Bagudu has said that his administration inherited a budget that was out of tune with reality.
While presenting the 2016 budget to the state house of assembly, Bagudu said his administration succeeded in reviewing the budget in order to get rid of all unrealistic estimates by the previous administration.
He said: “In fact, we undertook a review of the Government and the Local system and we shall submit our findings to the House. But to say the least it was shocking.”
Bagudu said the public system in Kebbi state was literally broken down when his administration took over from the government of his predecessor Saidu Dakingari.
“The rules and protocols which guide the appointment, postings, training, discipline, promotions and retirement are no longer observed, as it ought to be. No service can deliver in such circumstances and thus our determination to restore rules based system that is quick to adapt to changes,” Bagudu said.
He added: “In the social sector, like education and health we are off the tracks; we have to give pride of place to education and in doing so make more sacrifice for the sector that reflects such an appreciation.
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“More financial resources need to be devoted for the sector, better qualified teachers need to be found, children that are out of school need to be recognized and above all those in school must have the basic minimum to the necessary learning environment and tools to make achievement easier. We met a school system where children sit on the floor, no learning materials, basic conveniences are non-existence, no recreational facilities, examination fees were unpaid, basic data is not available and staff are without motivation.
“Secondly, in the health sector professionals are few, structures are many but in a lot of cases non–functional.
In addition to the social sector, the infrastructure challenge remains enormous. Some key federal and state roads are in poor condition. The Sokoto – Kontagora road had worsened to a nightmare, but I am working with the governors of Sokoto, Niger and indeed the federal government to ensure that re-construction takes place in earnest. We have since commenced work on a number of roads across the State and shall continue with more, with your kind approval.”
The governor also called on all public servants in the state to do their jobs without fear bearing that they all have a stake in the state.
“Resources might always be limited but with commitment much more can be accomplished with the limited resources that are available,” the governor said.
He said his admiration while reviewing the budget proposal addressed the infrastructure deficit and the need to expand major cities by designing and securing land for new layouts within them that shall incorporate facilities such as markets, stadium, motor parks, event centers and other elements of modernity.
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“Unemployment remains a big challenge, but our rice and wheat value chain initiative is already yielding fruit by expanding opportunities for our people. We propose to spend more than N10 billion to further the drive,” he said.
He also decried the foreign currency exchange rate as relating to the Nigeria’s naira.
“The most obvious implication of these assumptions is that what we are expecting from statutory allocation in 2016 can’t be more than what we received in the last few months, the exchange rate of N 197 to a Dollar is a far cry from the rate at which transactions are settled,” he said.
He said his administration has taken measures to ensure the leakages in the state’s economy to help implement the compulsory Treasury Single Account as directed by the President, Muhammadu Buhari.
“While revenues have been on the decline, expenditure had remained stubbornly high, numerous reviews to establish the correct state of affairs yielded modest results. The level of personnel cost for both States and Local Governments range between 70 to 95 percent of revenues.
“Our cost cutting measures and personnel audit have served to limit escalation and in some cases a decline in cost,” he said.
The governor, who presented a budget of N107 billion – N73 billion as capital expenditure and N34 billion as recurrent on a 70% to 30 % ration – said his administration estimated a revenue of about N 77 billion, borrowed funds of N 22 billion and additional borrowing of N 8 billion.
“The major increase in spending are for education N 16.4 billion, works and transport N 15.1 billion, agriculture N 12.5 billion, health N 3.9 billion, Solid minerals N 1.3 billion, empowerment N 1.2 billion, manufacturing N 586 million, security N 1 billion, sports and recreation N 1 billion and indeed all areas of governance shall witness some level of increase,” he added.
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In reaction to the budget presented by Bugudu, an Abuja based Kebbi indigene Faruk Sani told Naij.com that he is personally impressed with the governor’s actions.
Sani said the presentation has strengthened his belief that Kebbi state requires a “developmental economist” at this stage of her growth.
“The recognition of the rot in the civil service is a welcome development, which members of KPG and KDF should be happy with; the configuration of nominated commissioners attest to the seriousness of government to tackle the problem. The Governor has done what he is supposed to do, it is now left for the commissioners to either disappoint us or carry out their duties without any fear or favour and with max professionalism,” Sani said.
He further said: “In the social sector, I am happy the government intends to make more sacrifices in Education and Health. I hope part of the sacrifice is to recognize the Almajiri as a citizen eligible for funding. I also hope employment of Teachers for our schools will not be restricted to Kebbi state indigenes only.”
He said the budget expenditure ration is “superb”, and the capital spending at 70% is capable of stimulating the economy if 80% of the contracts are given to our local contractors.
“No nation succeeds that neglects its local entrepreneurs/ contractors. The debt component, which represents 28.03%, is realistic if channeled through income generating activities,” he said.
Sani also added that: “However, the down side of the presentation was the lack of emphasis on IGR reform, environment, youth employment and skill acquisition as well as industrialization. While the N566 million is grossly inadequate, one needs to wait and see the synergy between the N10 billion on rice value chain and the Central Bank of Nigeria initiative on rice production.”
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