Governor Bala Mohammed of Bauchi state Thursday presented a proposed budget of over N195 billion to the state House of Assembly for the 2022 fiscal year.
Presenting the budget, the governor stated that the sum of N8 4,375,180,518 : 00 representing 43 % was earmarked for recurrent expenditure while capital expenditure receives the sum of N110,620,426,625 :00 representing 57 %.
He said the 2022 proposed budget is 8.5 % lower than that of this year as the reduction was arrived at in order to align the projections with the current economic realities, especially relating to the state ability to meet anticipated revenues.
The governor said the conservative approach was adopted to ensure that projects and programmes captured are implemented.
He said 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, to improve the quality of financial reporting in line with the International Public-Sector Accounting Standards (IPSAS).
“Mr Speaker, Honourable members, the 2021 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 N 410.15 to the US dollar and an improved and efficient system of internally generated revenue collection.”
He said the state government has in the course of the preparation of the 2022 budget taken measures into consideration which include ensuring the completion of on-going projects only, proposing new projects only on the
projects only, proposing new projects only on the basis of critical need and the immediate impact it would make on the lives of the people.
Other measures, Governor Bala said, is ensuring reduction in non-essential overheads, compliance with budget guidelines issued by the Nigerian Governors Forum to ensure peer review and comparability and maintenance of critical spending on core government services among others.
“The process of the preparation of the budget has been all inclusive. Budget Public Hearings were conducted in the three Senatorial Districts where inputs from stakeholders were elicited and incorporated into the budget.”
On the implementation of the 2021 budget, the governor told the lawmakers that the rebound of the economy from the challenges brought by the pandemic has been weak and had therefore brought a number of challenges in the implementation of this year’s budget in the state.
Governor Mohammed expressed optimism that the 2021 budget implementation will attain 85% at the end of the 2021 fiscal year.
The governor solicited the support and cooperation of the assembly for the timely passage of the 2022 budget which he tagged: “Budget of Consolidation and Continuous Commitment” in an effort towards the development of the state and in improving the lives of its citizens.
Responding, the speaker of the Bauchi state House of Assembly, Abubakar Y Sulaiman, said the assembly will work closely with Ministries, Departments and Agencies in the state to ensure timely passage of the 2022 budget.
