REVIEW OF THE YEAR 2019 BUDGET
22. I will now begin my presentation by reviewing the performance of the 2019 Budget.
COMPONENTS OF THE 2019 BUDGET
23. During the 2019 fiscal year, Government budgeted the sum of three hundred and ninety billion, three hundred and seventy-eight million, six hundred and seventy-one thousand, one hundred and seventy-eight naira (N390,378,671,178). This comprised One Hundred and Fifty Seven Billion, Ninety Six Million, Twenty Nine Thousand, Two Hundred and Fifty Three Naira (N157,096,029,253) for recurrent expenditure, and Two Hundred and Thirty Three Billion, Two Hundred and Eighty Two Million, Six Hundred and Forty One Thousand, Nine Hundred and Twenty Five Naira (N233,282,641,925) for capital expenditure.
24. The main sources of funds for the 2019 budget:
Revenue Sources Approved Budget 2019 % Approved
Internally Generated Revenue 73,410,363,076 18.80
Statutory Allocation Including Mineral Revenue Derivation 217,894,748,193 55.82
Value Added Tax 13,051,179,721 3.34
Other Capital Receipts/Miscellaneous 86,022,380,188 22.04
Total Revenue N 390,378,671,178 100
2019 REVENUE PERFORMANCE
DETAIL OF ITEM APPROVED BUDGET 2019 PROPORTIONATE BUDGET JAN – AUGUST, 2019 ACTUAL JAN – AUGUST, 2019 % PERF
Internally Generated Revenue 73,410,363,076 48,940,242,051 36,168,411,689 73.90
Statutory Allocation Including Mineral Rev. Derivation 217,894,748,193 145,263,165,462 151,224,187,289 104.10
Value Added Tax 13,051,179,721 8,700,786,481 10,025,753,736 115.23
Other Capital Receipts/Miscellaneous 86,022,380,188 57,348,253,459 41,138,071,875 71.73
TOTAL REVENUE 390,378,671,178 260,252,447,452 238,556,424,588 91.66
25. Despite some economic hiccups at the national and sub-national levels, the State was able to record improved performance in statutory allocation and Value Added Tax. The Statutory Allocation in the first eight months of the year brought in the sum of one hundred and fifty-one billion, two hundred and twenty-four million, one hundred and eighty seven thousand, two hundred and eighty nine naira only (N151,224,187,289) as against the proportionate sum of one hundred and forty-five billion, two hundred and sixty-three million, one hundred and sixty-five thousand, two hundred and eighty-nine naira (N145,263,165,462) amounting to 104% performance.
26. From Value Added Tax, we received ten billion, twenty-five million, seven hundred and fifty-three thousand, seven hundred and thirty-six naira (N10,025,753,736) against the proportionate budget of eight billion, seven hundred million, seven hundred and eighty-six thousand, four hundred and eighty-one naira (N8,700,786,481) or 115%.
27. As at August, Internally Generated Revenue has raked in the sum of thirty-six billion, one hundred and sixty-eight million, four hundred and eleven thousand, six hundred and eighty-nine naira (N36,168,411,689), amounting to 74% budget performance. This relatively good performance in all revenue streams could be attributed to increased oil sales and improved performance of our revenue collection efforts.
28. Our overall revenue performance for the first eight months of the year (January to August), 2019 amounted to two hundred and thirty-eight billion, five hundred and fifty-six million, four hundred and twenty-four thousand, five hundred and eighty-eight naira (N238,556,424,588) as against the proportionate approved budget of two hundred and sixty billion, two hundred and fifty-two million, four hundred and forty-seven thousand, four hundred and fifty-two naira (N260,252,447,452), which is approximately 91.66% performance.
2019 RECURRENT EXPENDITURE PERFORMANCE
Recurrent Expenditure Approved Budget 2019 Proportionate Budget Jan – August, 2019 Actual Jan – August, 2019 % Performance
Personnel Costs 66,165,356,710 44,110,237,807 52,672,774,467 119.41
Overhead Costs / Consolidated Revenue Fund Charges 90,930,672,543 60,620,448,362 65,863,716,264 108.65
TOTAL RECURRENT EXPENDITURE 157,096,029,253 104,730,686,169 118,536,490,731 113.18
29. The recurrent budget for year 2019 is one hundred and fifty-seven billion, ninety-six million, twenty nine thousand, two hundred and fifty three naira (N157,096,029,253) with eight months proportionate budget figure of one hundred and four billion, seven hundred and thirty million, six hundred and eighty six thousand, one hundred and sixty-nine naira (N104,730,686,169). The actual expenditure within the period under review is one hundred and eighteen billion, five hundred and thirty-six million, four hundred and ninety thousand, seven hundred and thirty-one naira (N118,536,490,731) or 113.18% budget performance.
30. One of the transactions that accounted for the robust performance is our resolve to clear all backlog of workers promotion arrears, some dating back to 2013. This accounts for the high personnel cost performance for the period under review.
31. Against an approved budget of sixty six billion, one hundred and sixty five million, three hundred and fifty six thousand, seven hundred and ten naira (N66,165,356,710), the sum of fifty two billion, six hundred and seventy two million, seven hundred and seventy four thousand, four hundred and sixty seven naira (N52,672,774,467) was spent on payment of salaries for the period January to August 2019.
32. Matched with the proportionate budget of forty-four billion, one hundred and ten million, two hundred and thirty-seven thousand, eight hundred and seven naira (N44,110,237,807), this accounts for a performance of approximately 120%.
33. In keeping with our desire to continue to motivate our workforce in order to elicit the highest level of productivity possible, Government has thus far cleared all historical arrears that have to do with workers’ salaries.
