Where the money went in 2010
By DANIEL OKETA
2010 Budget overview: Budget Type: Deficit
Total Expenditure: N89 Billion 66%
Total Income expected: N80 Billion
Deficit: N9billion
Composition of expenditure:
Capital expenditure: N55b
Salaries/wages N17b
Overheads/debt services/pension and gratuity N16b
PREAMBLE
It is worth to know that there is a 29% significant increase in the 2010 Benue
State budget over that of 2009. This means that there is a projected growth in
economic and structural expansion. This budget seeks to consolidate growth and
transformation.
In Benue state, just like other state economies, infrastructural development,
power supply tax policies, location/proximity, market incentives can affect
business in different dimension. A deficit budget as this should not make us
panic as government may want to generate more money to the tune of N9b. This
could come from borrowing and internally generated revenue/tax. A wise
government will use the later adequately.
Secret: Government must seek to spend to the tune of the projected
expenditure in order to justify increase in the following year. So, almost N89b
will be spent in 2010.
Justification of Deficit: this is a primary purpose of reducing
inflation.
Assumption: Government is seeks to promote and ensure both public and
privet enterprise growth and sustainability, given a capital budget of N55b. no
war, constant allocation from Federal government and relative calm political
climate.
According to Gov. Suswam “the 2010 budget is a principal policy instrument to
continue our solemn promises to the Benue people as embedded in our
administration economic blue print ‘our Benue our future’. The 2010 budget is
seeking to realize tangible and enduring realities in the area of
infrastructural development and human development. Our administration remains
deeply committed to transforming the fortunes of our dear state and by extension
our people, by implementing strategic development policies and programmes to
sustain the achievement so far attained. The budget also opens up new vistas of
opportunities for our people while propelling our state towards greater economic
development”
Key Expenditure profile:
Agriculture: N8b
• Fertilizer: N3b
• Livestock and animal & FADAMA project: N84m
• Agric Equipments: N1b
• Swine Production: N700m
Business Growth: $8m
BN State partnering with United Nation Development ASS Framework
BN State: $4M (N600M)
UNDAF: $4M
Cooperative and Rural Development: N1.8b
Rural Electricity: N1b
Local Fed Roads: N500b
Youths and Sport: N1.1billion
NYSC CAMP: N350m
Aper Aku Stadium; N250m
Programmes and youth skills acquisition: no major amount budgeted.
Women Affairs N260m
Renovation of IBB square: ,…..
Completion of social welfare offices; Aliade and Otukpo…….
Makurdi Cancer center N78m
Analysis: Agriculture and road network. (N14b) includes:
• Ugbokolo-Oweto Agatu Lga • River Uyaver Bridge • Abwa-Lessel Rd •
Anyim-Ugba-Amaatu-Abay Rd: Logo Lga • Orokam-Owupka- Utonkon: Link Ado &
Ogbadibo Lga
• Eke-Elengwecho-Ugbokolo-Otupka-Orokam Rd • Jato-Aka- Keshimila Rd
• Adikpo-Ikyjen-Jato-Aka Rd • Ge-Ikyobo- Agbeede Amua-Anshagba
• Zakibiam –Afia Rd • Vandiekya-Koh-Yough-Adikpo Rd • Otupko-Utonkon –Igumale Rd
• Oju-Obussa-Utonkon Rd • Taraku-Naka-Agabge Rd • Abuku Ortere-Jingir Tyogbenda
Wonbo Rd • Igbor-Ikpa Annune
*Road network of rural communities is one of the major areas of investment of
the 2010 budget. This I believe is a purposeful effort to increase the
agricultural potential of Benue state as to justify the FOOD BASKET of the
Nation status to strengthen rural employment. This, combine with the N1.8b of
rural development and cooperative is truly used will have long lasting
development effect of the state economy. Agriculture and rural development is a
major investment area of the 2010 budget.
Oketa is an Abuja based business analyst.
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