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Nairaland Forum / Nairaland / General / Politics / Balancing The Budget: Kano-State Vs FG (8687 Views)
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Balancing The Budget: Kano-State Vs FG by simpleseyi: 10:57pm On Dec 25, 2013 |
Kwankwaso Teaches Okonjo-iweala How To Balance Budget Nigeria’s finance minister, Dr. Ngozi Okonjo Iweala said Nigeria will be spending 78 per cent of its income on recurrent expenditure in 2014 and 22 per cent on capital projects. Nearly a trillion naira will be borrowed to finance the capital projects. But in Kano, Rabiu Kwankwaso, an engineer, who doubles as the governor of the state, has demonstrated how best to run a national budget, at state level: Kwankwaso in fiscal 2014 year, will be spending 32 per cent of the expected income of N219.2 billion on recurrent expenses. Capital expenditure will take the rest. “The 2014 budget has a projected recurrent revenue N126, 960,422,861 and capital receipt of N81, 526,211,850. It also has a recurrent allocation of N70, 621,425,720 and capital estimates of N148, 659,847,767. This represents a total of 68% capital and 32% recurrent estimate,”Kwankwaso said. In some of the highlights of the budget, the state will be financing free and compulsory education at all levels in the state, at a cost of about N35 billion, about 20 per cent of the budget “in our collective resolve to drive a knowledge base economy, government has already concluded arrangement to adopt a free education for all indigene at all levels: primary, secondary and tertiary institutions in the state.” “This is in addition to sponsoring of Kano indigenes to pursue their various degree programmes locally and internationally”, pointing out that the commencement of the free education for all Kano state indigenes from primary, secondary and tertiary institutions starting from the new academic session in 2014.” Other policy programmes in 2014 fiscal year under education include, N6.5 billion for the continuation work at Schools for Islamic Studies in each of the 44 LGAs Kwankwaso revealed that N2 billion has been set aside for the continuation of 44 Technical Schools one in each LGAs; adding that N241 million has equally been earmarked for the procurement of 15 mobile computing solar powered container box. He said that N250 million was also earmarked for the establishment of another boarding primary school in the state, adding that N1.3 billion has been allocated for the Construction and furnishing of 268 additional classrooms in the state. The Governor further stated that Northwest University got N3billion for the continuation of construction of Faculty building, senate building and other infrastructure, adding under the 2014 approriation bill N586 million was earmarked for the continuation work at former Magwan Water Restaurant to First Lady College. SOURCE: http://pmnewsnigeria.com/2013/12/25/kwankwaso-teaches-okonjo-iweala-how-to-balance-budget/ 1 Like |
Re: Balancing The Budget: Kano-State Vs FG by Iolo(m): 11:45pm On Dec 25, 2013 |
The only way to balance the National budget is to reduce recurrent expenditure. Obviously you know the Government would have to sack staff to accomplish this. Budgets are balanced by the realities on ground. 3 Likes |
Re: Balancing The Budget: Kano-State Vs FG by jmaine: 11:51pm On Dec 25, 2013 |
Iolo: The only way to balance the National budget is to reduce recurrent expenditure. Obviously you know the Government would have to sack staff to accomplish this. A point i have been buttressing since, but the adamant refuse to yield. Thank you bruv. . . . 11 Likes |
Re: Balancing The Budget: Kano-State Vs FG by Ikengawo: 11:54pm On Dec 25, 2013 |
PDP States. 1] Kano (PDP) owes $61.7million 2] Katsina (PDP) owes $74.6million 3] Akwa Ibom (PDP) owes $61.6 million 4] Cross River (PDP) owes $113million 5] Kebbi (PDP) owes $47.8million 6] Kogi (PDP) owes $33.8million 7] Niger (PDP) owes $29.7million 8] Kwara (PDP) owes $45.5million 9] Kaduna (PDP) owes $215.6million 10] Plateau (PDP) owes $21.9million 11] Rivers (PDP) owes $36.6million 12] Jigawa (PDP) owes $33.6million 13] Gombe (PDP)owes $31.7million 14] Enugu (PDP) owes $50million 15] Delta (PDP) owes $18.9million APC States. 16] Lagos (APC) owes $611.2 million 17] Nassarawa (APC) owes $36.9 million 18] Ogun (APC) owes $102million 19] Osun (APC) owes $62.7million 20] Oyo (APC) owes $76.6million 21] Edo (APC) owes $42.7 million. 22] Ekiti (APC) owes $36.1million APGA And Labour State(s) 23] Ondo (LP) owes $51.8 million 24] Imo (APC) owes $51.9million 25] Anambra (APGA) owes $26.7million http://www.stelladimokokorkus.com/2013/09/lagos-tops-debt-list-of-states-in.html |
Re: Balancing The Budget: Kano-State Vs FG by Pukkah: 7:53am On Dec 26, 2013 |
Iolo: The only way to balance the National budget is to reduce recurrent expenditure. Obviously you know the Government would have to sack staff to accomplish this. Sacking of staff is not the only way to reduce recurrent expenditure. In any case, why can't unproductive people be sacked? Why can't ghost workers and ghost pensioners be fished out? A budget that funds recurrent expenditure to the tune of 72% can never develop Nigeria. This unacceptable lopsidedness is one of the reasons people are not feeling the impact of the FG. What can 28% achieve? How can a budget of 72% in recurrent expenditure create jobs? As at 2006, recurrent expenditure was 66% of the budget and this level was even considered too high then. Again, this is not Okonjo-Iweala's promise. She did tell us that government was resolved to reduce recurrent expenditure. What's happening! https://www.nairaland.com/821355/must-cut-recurrent-budget-okonjo-iweala @op, the recurrent expenditure in the budget is 72% and not 78%. http://www.punchng.com/news/okonjo-iweala-presents-n4-6tr-budget-to-national-assembly/ 3 Likes |
Re: Balancing The Budget: Kano-State Vs FG by Pukkah: 8:05am On Dec 26, 2013 |
In Okonjo-Iweala's own words: She said: “When I left the administration last time (2006), we left a recurrent expenditure level of about 66 per cent, which was even considered to be too high back then. However, upon my second coming this year, I was surprised to find that recurrent expenditure in the budget has risen to more than 74 per cent. This is unacceptable.” http://www.vanguardngr.com/2011/12/we-must-cut-recurrent-budget-okonjo-iweala-insists/ This says a lot about the way this government spends money and controls recurrent expenditure. 2 Likes |
Re: Balancing The Budget: Kano-State Vs FG by simpleseyi: 8:07am On Dec 26, 2013 |
Iolo: The only way to balance the National budget is to reduce recurrent expenditure. Obviously you know the Government would have to sack staff to accomplish this. What about reducing 1.3 billion naira food budget, abolishing 255 million naira bullet-proof second-hand cars, reducing over 2 billion naira travelling expenses, reducing money spent on maintaining 10 or 11 presidential jets? Reducing number of useless aides, why do we have a Reuben Abati and a Doyin Oku-Igbe doing the same dirty job? What of unconstitutional office of first lady with many redundant aides? This also goes down to the states (APC, PDP, APGA, LP) and local governments. But first of all, have you tried this site http:///19rcMQj ? You will be will excited. Small change to pay recurrent expenditure. 12 Likes |
Re: Balancing The Budget: Kano-State Vs FG by Goddex: 8:44am On Dec 26, 2013 |
[size=16pt]Hahahaha. . . so, suddenly Kwakwanso, Wamakko and other PDP renegades are now the toast of APC media? Back to the point anyway 1) State govt's are much smaller units with much less workforce and responsibility than FG. Apart from the huge civil service, just check out the huge military and paramilitary personnel (Army, Civil Defence, Navy, Police, Airforce, Customs, Immigration etc) 2) Not only Kwakwanso, almost all states have budget ratios tilted in favour of Capital. 3) Somebody just compared it with 2006 but forgot that a major upward review of minimum wage of close to 200% was done in 2011 and therefore the recurrent vs capital percentages cannot remain the same again 4) It will take a while to stabilise again. I remember last year after the fuel price hike, inflation rose upto 16% but now it has dropped low to a single digit of 7% 5) This govt parades some of the best Economists in the land. It's funny atimes when some mumus who know nothing about the workings of govt come here to display your ignorance 6) Besides, some of you came out here supporting a pay rise for ASUU even when we all know our Universities lecturers are already living large. You did that just to sabotage the GEJ but forgot to know that you can never eat your cake and have.[/size] 31 Likes |
Re: Balancing The Budget: Kano-State Vs FG by revolt(m): 8:48am On Dec 26, 2013 |
Pukkah:one of the hardest things to do is attempting to sack a civil servant, Cos they're statutorily backed up the only solution is to remove the most tasking sectors from government hand ie deregulation and what happened in nitel will simply take place. okonjo tried some of these and people went to occupy ojota. Nigerians are myopic bunch, that shoots themselves in the foot. demagogues sway them cheaply 13 Likes |
Re: Balancing The Budget: Kano-State Vs FG by since1914(m): 9:09am On Dec 26, 2013 |
At this stage, I think it is totally unacceptable that we are currently doing less than 35 percent for capital expenditure.While I acknowledge that it will be a little discomforting to cut our recurrent expenditure all in one go, I think the minister should have developed a 3-4 year plan to achieve this, with a very rigid milestone for each year. In my opinion, it is the 'Father Christmas' disposition of the Federal Government that is responsible for our very high recurrent expenditure. Even government agencies that are capable of funding part of their own expenditures will fold their hands and wait for Ministry of Finance to fund them. Take the case of Nigerian Embassies for instance, how much do they remit back to the Federation account from the Visas fees and other levies that are being collected. If I were the President, I will insist that most of these MDAs finance at least 15 to 20 percent of their own budgets. The minister needs to assist some of these agencies to become profitable; an agency like the National Bureau for Statistic for instance has the capacity to raise a part of its budget by commercializing its data. The minister can attach financial experts from her office to agencies like this, to help develop a business plan for them, to see that they become profitable. Of course, another culprit is corruption, there are lots of leakages in the system. Both from the area of budgeting to that of revenue generation. We need to take a closer look at what our revenue generating agencies are doing. There cases for instance where FIRS & Customs officials conspire with taxpayers to defraud the government. If we can plug all of these leakages and open up new streams of income, without doubt, we could be doing a 50-50 budget in the next three years. 8 Likes |
Re: Balancing The Budget: Kano-State Vs FG by Iolo(m): 9:17am On Dec 26, 2013 |
simpleseyi: All valid points you have raised. Same should go for the legislators salaries. But my take is these would only reduce recurrent by not much (less than 5%) so they are not significant per say. 2 Likes |
Re: Balancing The Budget: Kano-State Vs FG by Pukkah: 9:20am On Dec 26, 2013 |
Goddex: Hahahaha. . . so, suddenly Kwakwanso, Wamakko and other PDP renegades are now the toast of APC media? Fools, hypocritical Propagandists. Back to the point anyway At first I wanted to ignore your post because of its arrogance. Why would you label people posting here as 'mumus' who don't know the workings of the government? Do you know them? The most knowledgeable people don't write off others or make condescending remarks about them. Now to the topic. All the points you made will be cancelled by this words from none less than Vice President Namadi Sambo. Hear him: "The recurrent expenditures will be trimmed further from 71.5 per cent in 2012, to about 68.7 per cent in the 2013 budget, while the capital vote is expected to increase to 31.3 per cent from 28.5 per cent in 2012." http://www.punchng.com/business/business-economy/well-reduce-recurrent-expenditure-to-68-7-sambo/ What's your comment on this? Why is the ratio worsening? You claimed minimum wage was effected in 2011 but Sambo made his remarks after then! Where is the effect of the reduction in fuel subsidy payments on recurrent expenditure? You also mentioned minimum wage. Didn't states implement the minimum wage? You mentioned inflation rate. Did the inflation rate affect only the FG? It's good anyway that you said the rate later stabilized. There's no point politicizing this topic. Nigeria belongs to all regardless of political party divide. It's pointless to label people with dissenting views as haters, opposition or enemies. 20 Likes |
Re: Balancing The Budget: Kano-State Vs FG by erniok(m): 9:22am On Dec 26, 2013 |
Ikengawo: PDP States.Abia is not on this list and I'm not surprised as t.a. Orji is doing absolutely nothing. 1 Like |
Re: Balancing The Budget: Kano-State Vs FG by Iolo(m): 9:28am On Dec 26, 2013 |
Pukkah: I should have said that cutting staff strength is the only way to significantly reduce recurrent expenses. Its not the only way like you've said but no other option would give you anything more than 100 billion savings at best. Since 2006, a lot of things have changed. We now have an armed forces and police that gulp approx 1 trillion naira yearly. Our civil service has gained some weight as we also have more agencies. Cutting staff is always a touchy issue for governments but its the best means to reducing recurrent expenditure. This is why companies in financial trouble tend to cutdown staff before doing anything else. But with a government you have the trade unions and NLC that would fight any moves to sack workers. To make matters worse, in Nigeria it almost seems like a birthright for civil servants to retain their positions till they die. We have that mentality that Government has enough miney to go round so the civil service is a piece of the national cake for the common man. 2 Likes |
Re: Balancing The Budget: Kano-State Vs FG by NgeneUkwenu(f): 9:28am On Dec 26, 2013 |
Goddex: [size=16pt]Hahahaha. . . so, suddenly Kwakwanso, Wamakko and other PDP renegades are now the toast of APC media? Back to the point anyway 17 Likes |
Re: Balancing The Budget: Kano-State Vs FG by Nobody: 9:30am On Dec 26, 2013 |
Removal of fuel subsidy alone would balance the federal budget to about 50% capital versus 50% recurrent expenditure. Ghana has already removed fuel subsidy but because of dirty, evil and tribal politics we have not done the needful in Nigeria. Shame on all those who supported the retention of fuel subsidy in Nigeria. And these are same people that shamelessly compare Nigeria with Ghana but they conveniently forget that while Ghana was taking difficult but necessary steps to move their country forward, Nigeria was busy playing dirty politics. 4 Likes |
Re: Balancing The Budget: Kano-State Vs FG by 4Play(m): 9:33am On Dec 26, 2013 |
Cutting recurrent expenditure is something everyone claims they will like to do but no one actually does. The main component of recurrent expenditure is personnel costs it seems. Every union strike, be it ASUU or medical doctors, is supported by populists. How can you be against high recurrent expenditure but in favour of public sector wage hikes which benefit the few at the expense of the many? Aso Rock food budget and the plane purchases should be scrapped but these barely make a dent. In the US, the opposition will propose a rival budget which will give people an idea of how they intend to actualise their stance. Nothing is proposed here as an alternative other than vacuous point scoring. 5 Likes |
Re: Balancing The Budget: Kano-State Vs FG by Pukkah: 9:37am On Dec 26, 2013 |
revolt: one of the hardest things to do is attempting to sack a civil servant, Cos they're statutorily backed up the only solution is to remove the most tasking sectors from government hand ie deregulation and what happened in nitel will simply take place. okonjo tried some of these and people went to occupy ojota. Nigerians are myopic bunch, that shoots themselves in the foot. demagogues sway them cheaply What has happened to the Oronsaye Committee report? Why was the Committee set up if the report would be left to gather dust? http://www.punchng.com/news/oronsaye-report-fg-may-scrap-220-agencies-others/ Why is government finding it difficult to restructure for efficiency? The Oronsaye report stated that the average cost of governance in Nigeria is believed to rank among the highest in the world. Oronsaye said: ``For example, there are 541 Government Parastatals, Commissions and Agencies (statutory and non-statutory). ``Going by the recommendations of the Committee, the figure of statutory agencies is being proposed for reduction to 161 from the current figure of 263. http://www.businessdayonline.com/NG/index.php/news/76-hot-topic/36052-oronsaye-committee-recommends-abolition-of-32-fg-agencies-merger-of-53-others Do you know the extent to which people are suffering in Nigeria? By the way, what did Okonjo-Iweala do that made people occupy Ojota? Also, where did you get the impression that civil servants can't be sacked? 2 Likes |
Re: Balancing The Budget: Kano-State Vs FG by Iolo(m): 9:37am On Dec 26, 2013 |
Pukkah: To address some of what you have raised , I would say that even NOI promised to reduce the recurrent aspect of our budget with a view to increasing the capital component but I'm sure that they have found it too thorny an issue to face squarely. The minimum wage was raised by 50% and salary packages for the various industries like conmess, and the ASUU package have also contributed. As regards the fuel subsidy and why its not reflected in the budget. The figures are not fresh in my head any longer but if I remember correctly much of the fuel subsidy was being paid by supplementary budgets. The government then would budget about 200 billion in d appropriation bill but would request for more money for fuel subsidy using supplementary bills as the occasion arises. |
Re: Balancing The Budget: Kano-State Vs FG by Nobody: 9:41am On Dec 26, 2013 |
Goddex: [size=16pt]Hahahaha. . . so, suddenly Kwakwanso, Wamakko and other PDP renegades are now the toast of APC media? Back to the point anyway Good, So you work for the Fg. When i need a job, i'll call you but right now i'll bash you. The amount spent on recurrent expenditure is absolutely unacceptable. You guys get your backs in it and stop giving us excuses like women. Reducing recurrent expenditure should be a holistic process. Costs should be cut from the top. Feeding expenses-slash it 200 cars for every occassion-slash it Money wasted on PR- slash it. Money wasted on Dogs and other animals at aso rock-slash it. Money budgeted to buy new private jet for presidency- STOP IT!!!!!!!!?!!!!!!!!! Etc. Goddex i'll follow you, hope you'll follow me back for constructive critisism. 5 Likes |
Re: Balancing The Budget: Kano-State Vs FG by Pukkah: 9:46am On Dec 26, 2013 |
Iolo: A transformational government will leave no stone unturned to change the status quo. We would not be discussing this if we wanted to sustain or defend the status quo which everyone knows is crippling and cannot deliver development. For example, Sanusi Lamido once made the following statements: “At the moment 70 per cent of Federal Government’s revenue goes for payment of salaries and entitlement of civil servants, leaving 30 per cent for development of 167 million Nigerians. That means that for every naira government earns, 70 kobo is consumed by civil servants." Is this not scary? What's government's plan to address this bad case? What's government doing to reduce the expenditure on the National Assembly? A transformational government would engage the key actors and try to bring down the costs. But is the government also showing good examples in its own expenditure profile and tolerance for corruption? 2 Likes |
Re: Balancing The Budget: Kano-State Vs FG by Kingspin(m): 9:48am On Dec 26, 2013 |
The headline is laughble. To me, it look like a personify beef. Is a party?. |
Re: Balancing The Budget: Kano-State Vs FG by Nobody: 9:52am On Dec 26, 2013 |
Ikengawo: PDP States. Hey you! Kano is an APC state not pdp. Okay? And to give you more head-aches Lagos state, Rivers state and Kano state are all APC states. You sure know how important those states are don't you?? 2 Likes |
Re: Balancing The Budget: Kano-State Vs FG by GodpassU: 9:53am On Dec 26, 2013 |
The recurrent expenditure shit is within dese messy fed executives n legislators wit other capital projects not executed n funds embezelld. Ma brother.....na still corruption....make dem no yarn me nonsense! |
Re: Balancing The Budget: Kano-State Vs FG by Pukkah: 9:56am On Dec 26, 2013 |
Kingspin: The headline is laughble. To me, it look like a personify beef. Is a party?. I agree that the headline 'get as e be' and is capable of turning this useful topic into a political fight. But is there any patriotic Nigerian that's not concerned about the issues at stake? The bitter truth is that the Jonathan government will never perform if the recurrent expenditure remains at this level. |
Re: Balancing The Budget: Kano-State Vs FG by NgeneUkwenu(f): 10:01am On Dec 26, 2013 |
Sincere 9gerian: Removal of fuel subsidy alone would balance the federal budget to about 50% capital versus 50% recurrent expenditure. Ghana has already removed fuel subsidy but because of dirty, evil and tribal politics we have not done the needful in Nigeria. Shame on all those who supported the retention of fuel subsidy in Nigeria. And these are same people that shamelessly compare Nigeria with Ghana but they conveniently forget that while Ghana was taking difficult but necessary steps to move their country forward, Nigeria was busy playing dirty politics. Why has the 50% removal not tilted the Budget towards Capital Expenditure rather we are seeing the opposite? 4 Likes |
Re: Balancing The Budget: Kano-State Vs FG by NgeneUkwenu(f): 10:06am On Dec 26, 2013 |
Iolo: I cannot agree with you more. That has been my submission over the years and that sums the reason, i have not criticized the present government on this. You see because of the fact the manufacturing sector which suppose to be engine room of employment is in comatose, the Govt tends to help by creating all sorts of agencies and parastatals which we dont need and fill them with political hirelings in order to stem the huge unemployment in the country. Consequently the mess we are seeing now in form of recurrent expenditure. So it is high time this trend is reversed, or we will wake up one day and discover that the whole budget is dedicated to recurrent expenditure. Fed should give the bitter pill by pruning down its staff strength ( some of them who are redundant anyway) and reduce their emoluments and see very large chunk of recurrent expenditure saved. My 20 cents |
Re: Balancing The Budget: Kano-State Vs FG by since1914(m): 10:09am On Dec 26, 2013 |
Pukkah: I think our problem typically begins at the budget office (isn't that why it is considered a lucrative posting by civil servants?), that is where civil servants start padding the budget from. What we should be asking now is, how much of the 70 kobo is spent on actual salaries; how much of it is spent on imprest and cost of running the various offices, and finally, what constitutes each imprest for each office? The truth is, if you budget an imprest of say 2 million naira for a small office every month, the head of that department, will ensure all of that money is spent in a month. He won't come back to you to say the money is too much. Haven't we had cases where government officials fuel a salon car five times in one single day, and claim from the government the full amount for same. Just imagine the number of people pulling this stunt across the various government agencies and how many times they do so in a month, then multiply it by twelve months. The Finance Minister only needs to take a look at the past Auditor General's report to know what goes on in these ministries. Secondly, I also think our wage bill is over-inflated. We need to carry out a personnel audit across all the MDAs and am sure we will be surprised by how much we can bring down these figures. 3 Likes |
Re: Balancing The Budget: Kano-State Vs FG by Pukkah: 10:09am On Dec 26, 2013 |
since_1914: Even government agencies that are capable of funding part of their own expenditures will fold their hands and wait for Ministry of Finance to fund them. Take the case of Nigerian Embassies for instance, how much do they remit back to the Federation account from the Visas fees and other levies that are being collected. You've raised very good points. So many of the MDAs are not even remitting funds. It's not clear what a number of them that are known to be cash cows are doing with the money. This is a shocking excerpt: At least, 11 of the agencies have been declaring losses every year and, therefore, have not been remitting anything to the CRF. They included agencies widely known by the public as veritable cash cows for the federal government. For the past three years, notably, high-flying, huge revenue generators like the NNPC, Customs Service, BPE, NIMASA, NERC, FAAN, Nigerian Immigration Service (NIS) and Nigerian Broadcasting Commission (NBC) have not paid a kobo into the CRF. The Federal Inland Revenue Service (FIRS), rather than pay its operating surplus to the CRF as listed by law, has been sending it to the Federation Account. http://sundaytrust.com.ng/index.php/top-stories/14674-nnpc-npa-nimasa-others-not-remitting-surplus-internally-generated-revenue 3 Likes |
Re: Balancing The Budget: Kano-State Vs FG by taharqa: 10:13am On Dec 26, 2013 |
. |
Re: Balancing The Budget: Kano-State Vs FG by awodman: 10:15am On Dec 26, 2013 |
Does Kwankwaso have the Military,Police, SSS and other security agencies under his payroll? Does kwankwaso pay for fuel subsidy? How many university teachers,Polytechnic teachers and research institutes are under Kano govt payroll? 1 Like |
Re: Balancing The Budget: Kano-State Vs FG by nationwide1(m): 10:19am On Dec 26, 2013 |
So Kwankwaso is now faultless less than 3 weeks in APC. The hypocrisy is gradually getting exposed. But come to think of it, no matter the sentiments ( religious, ethnic or political), rating economic prowess of Kwankwaso higher than Okonjo-Iweala is foolishness. 1 Like |
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