Kano state government is planning to finance its next fiscal expenditure at N148 billion dominantly from Statutory Federation Account, to be complemented from the state earnings from the Internally Generated Revenue (IGR).
A breakdown of the fiscal proposal presented to the Kano State House of Assembly in the week, indicates that about N52 billion of the amount is to come from statutory allocations to the state from the Federation Account, over N24 billion from Internally Generated Revenue (IGR), while, the balance of about N28.4 billion would come from Value Added Tax (VAT).
Governor Abdullahi Umar Ganduje of Kano, who disclosed that the fiscal proposal is tagged “Budget for Economic Recovery and Sustainable Development” is a reflection of the vision of the state to diversify its sources of revenue with a view to lay a solid foundation that will guide the administration to pursue its development objectives.
According to him, the income sources are built on the operational principles, aspirations and priorities of the administration which is geared towards ensuring the leadership position of the state as one of Nigeria`s industrial and commercial hubs.
READ ALSO: Lagos plans to register 15m residents
He stated that the fiscal arrangement of the state in the year will be driven by key sectors, such as: education, water supply, health, agriculture and infrastructural development.
“The total recurrent revenue to be collected is estimated at the sum of N106 billion which consists of N24 billion as internally generated revenue (IGR) and over N52 billion as revenue from the Federation Account, value-added tax (VAT) stands at N28.4 billion.
“While other receipts stand at about N1.5 billion. The total recurrent revenue is lower than that of the last the year of 2020 by N605 million. The total recurrent expenditure of the 2021 the budget stands at over N73 billion which consists of N7. 7 billion as Consolidated Revenue Fund Charges. And also the sum of N55.6 billion is earmarked as personnel cost, while, about 10 billion is earmarked as Overhead cost”, he explained.
The proposed capital expenditure for the 2021 fiscal document stands at N74.7 billion which is higher than that of 2020 revised budget by N14 billion which the Governor noted would be financed by N32.8 billion expected from Recurrent Revenue Surplus and total capital receipts of about N42 billion.
He further explained that the capital receipts are made up of N6 billion expected Internal and External loans drawdown, and an estimated general grants of about N33 billion, and Miscellaneous receipts which stand at over N2 billion, with treasury opening balance of N263,565,905.
Governor Ganduje assured that the foundation for the implementation of policies and programmes have been fashioned out, noting that his administration is committed to the pursuit of major projects and programmes in the 2021 fiscal year.
“The focus of the budget will be the integration of the Almajiri system of education, security, food security, fight against corruption (the state has the vibrant Anti-Corruption Agency, health, empowerment programmes, skills acquisition and public-private partnership, among others.
“Education sector has over N37 Billion representing 25% of the total budget, health care delivery service has over N25 Billion representing 17% of the total budget, the sum of over N3 Billion is earmarked for the take-off of Kano light train project, while Housing and Transport is earmarked with over N3 Billion, Information Ministry has the total budget of N2.5 Billion and Agriculture has been earmarked with the total sum of N5.7 Billion among other sectors”, the Governor pointed out.
