Finance Commissioner Suleiman Abdu Kwari told the legislators that the presentation of the budget performance report “is in furtherance of the quest of the El-Rufai government to ensure accountability and transparency in governance”.
Reviewing the budget performance, Kwari recalled that the 2016 Budget is based on 60:40 expenditure profile for Capital and Recurrent. Key priorities for the budget are: Infrastructure, Healthcare, Security, Jobs and Agriculture with Education Sector being given the utmost priority.
Reviewing the budget performance, Kwari recalled that the 2016 Budget is based on 60:40 expenditure profile for Capital and Recurrent. Key priorities for the budget are: Infrastructure, Healthcare, Security, Jobs and Agriculture with Education Sector being given the utmost priority.
While the revenue dip has been a bit of a dampener, procurement processes for capital projects have dominated the first quarter as the government remains determined to fulfill its manifesto commitments. Capital spending in the first quarter amounts to an unprecedented N7bn, with N4.9bn going to the Education sector for school renovation, furniture, and uniforms, and almost a billion naira as payments for the Zaria Water Project.
According to the Finance Commissioner, Kaduna State Government has spent N10.7bn on salaries, pensions and overheads in the first three months of the year. Kwari disclosed that many ministries have spent the first quarter launching procurement processes for their projects, and that he expects capital spending to be ramped up in the second quarter. He also explained to the legislators that the government has adopted a Budget Adjustment Mechanism with four scenarios to cope with the steep reduction in revenues.
Explaining how the state is coping with reduced revenues, Kwari disclosed that the government adopted a Budget Adjustment Mechanism as a strategy to ensure full payments of personnel cost, before offsetting Capital cost. Only after these two liabilities are met are Overheads. Consequently, this resulted in prudence being exercised, thereby resulting in massive savings in overheads.
Kwari also updated the House of Assembly on the internal revenue generation efforts of the government. “The Kaduna State Government budgeted about N45.8billion mainly in Tax revenues to be generated by the KADIRS, which roughly translates to about N3.75billion monthly. In order to achieve this audacious goal, the Governor embarked on an emergency reform of the Kaduna Board of Internal Revenue.
According to the Finance Commissioner, Kaduna State Government has spent N10.7bn on salaries, pensions and overheads in the first three months of the year. Kwari disclosed that many ministries have spent the first quarter launching procurement processes for their projects, and that he expects capital spending to be ramped up in the second quarter. He also explained to the legislators that the government has adopted a Budget Adjustment Mechanism with four scenarios to cope with the steep reduction in revenues.
Explaining how the state is coping with reduced revenues, Kwari disclosed that the government adopted a Budget Adjustment Mechanism as a strategy to ensure full payments of personnel cost, before offsetting Capital cost. Only after these two liabilities are met are Overheads. Consequently, this resulted in prudence being exercised, thereby resulting in massive savings in overheads.
Kwari also updated the House of Assembly on the internal revenue generation efforts of the government. “The Kaduna State Government budgeted about N45.8billion mainly in Tax revenues to be generated by the KADIRS, which roughly translates to about N3.75billion monthly. In order to achieve this audacious goal, the Governor embarked on an emergency reform of the Kaduna Board of Internal Revenue.
This culminated in the emergence of the Tax Codification and Consolidation Law 2016 and the creation of KADIRS.” The Commissioner highlighted the engagement of a renowned consultancy firm to drive the successful take-off of KADIRS in meeting the set revenue target, and the inauguration of a high powered Taskforce, that he is chairing to address the challenges of increasing IGR.
In order to accelerate implementation of the capital budget, the state government has initiated quarterly budget implementation retreats to ensure fast tracking and prioritization of projects with wide impact on the people. The government is also launching a comprehensive monitoring and evaluation mechanism which will, for the first time, involve ordinary people of the state in monitoring the performance of government.
In order to accelerate implementation of the capital budget, the state government has initiated quarterly budget implementation retreats to ensure fast tracking and prioritization of projects with wide impact on the people. The government is also launching a comprehensive monitoring and evaluation mechanism which will, for the first time, involve ordinary people of the state in monitoring the performance of government.
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