REVEALED: Only 51% of 2023 budget has been implemented, says Bauchi governor

Bauchi State governor, Bala Mohammed has said that only 51 percent of 2023 budget has been implemented while citing inflation as one of the constraints that affected performance of the budget.

Governor Mohammed made the assertion on Thursday while presenting a N300 billion budget for 2024 fiscal year at the Bauchi State House of Assembly.

Mohammed who presented the 2024 budget he tagged ‘Budget of Consolidation & Renewed Focus’ noted that the budget was predicated on the assumptions of oil production projection of 1.78 million barrels per day; a bench mark oil price of 73.96 US dollars per barrel.

He further stated they used an exchange rate of N700 to the US dollar; an improved level of revenue accruals into the Federation Account arising from oil subsidy removal; and an improved and efficient system of internally generated revenue collection.

“Speaker, Honourable Members, though revenue accruals into the Federation Account started slowly during the year, the removal of subsidy had resulted in greater revenue streams making our overall revenue projections attainable. Rising inflationary conditions and failure in meeting projected capital receipts from development partners had however affected the overall performance of the 2023 budget.

“We have, in that regard, only been able to achieve about 51.6% in the implementation of the budget as at 30th September 2023. We remain optimistic of achieving a considerable degree of performance in our Budget implementation at the end of the fiscal year most especially with concrete measures put in place to improve on our internal revenue generation,” he said.

Bala Mohammed who further remarked that the proposed budget is 48.2% higher than that of 2023, attributed the increase more revenue arising from subsidy removal and the upward inflationary trends associated with the depreciating state of the local currency

“The 2024 budget which I tag “BUDGET OF CONSOLIDATION & RENEWED FOCUS”’ is prepared based on the Medium-Term Expenditure Framework (MTEF) in compliance Bauchi State Fiscal Responsibility Law (2009).

“It further complies with the National Format and Chart of Accounts, aimed at improving the quality of financial reporting in line with the International Public-Sector Accounting Standards (IPSAS).

“The 2024 Budget has been predicated on the assumptions of an oil production projection of 1.78 million barrels per day; a bench mark oil price of 73.96 US dollars per barrel; an exchange rate of N700 to the US dollar; an improved level of revenue accruals into the Federation Account arising from oil subsidy removal; and an improved and efficient system of internally generated revenue collection.

“​The sum of N300,219,705,820.60 has been budgeted for Capital and Recurrent services during the 2024 fiscal year. This comprises of Recurrent Expenditure of N121,341,193,343.11 or 40.4% while Capital Expenditure receives the sum of N178,878,512,477.49
or 59.6%.

“This implies an increase in prices upon which our projects and programmes will be implemented. The adoption of this conservative approach is to ensure that projects and programmes captured are appropriately costed,” he added.