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2013 Budget Speech

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Budget of Empowerment and Consolidation

Budget of Empowerment and Consolidation


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  • 1. 2013 Budget Speech by Gov. Kayode Fayemi of Ekiti State, Nigeria, Thurs. Dec 6, 2012 Page 1 of 33
  • 2. PROTOCOLSIt is a great delight for me to, once again, stand before this Honorable House toofficially present the 2013 Appropriation Bill for consideration and approval.You will please recall that while presenting the 2012 Budget of this administrationon 22nd December 2011, I made it clear that the Budget was aimed at deliveringgood tidings to Ekiti people. Consequently, in the fiscal year, much attention wasdevoted to policies and programmes aimed at entrenching sound and freequalitative Health and Education services, maximum support for humanempowerment, laying solid industrial base to stimulate the economy and create afriendly environment to attract potential investors to the State.Christening the 2012 Budget as the “BUDGET OF DELIVERY” was purposefuland focus driven. The policy thrust of the budget was to address in concrete andpragmatic terms all variables to stimulate economic growth through accountablegovernance and practical developmental efforts. Our focus was clear and theapproach has yielded dividends. I am delighted to say, without being immodest,Mr. Speaker and distinguished honourable members that this objective has beensubstantially achieved. Everywhere you turn in our state today, you see physicalevidence of government presence in our communities. We have been able to touch 2013 Budget Speech by Gov. Kayode Fayemi of Ekiti State, Nigeria, Thurs. Dec 6, 2012 Page 2 of 33
  • 3. the lives of the general masses and delivered on the target we set for ourselves at thebeginning of the fiscal year.REVIEWBefore I go into the key details of what we have been able to accomplish in twoyears, it is important to restate the monumental challenges that we faced when wetook office in November 2010. We inherited a debt peonage of 42 billion and manyuncompleted and abandoned road projects. The Ado-Iworoko-Ifaki-Road is asignificant example of these abandoned projects. This road project had gulped80percent of contract sum and less than 20 percent completion when we assumedoffice. From the less than 20 percent completion level that we met it, it has nowreached 80 percent completion. Also, the State was collecting 2.8 billion nairamonthly from the Federation Accounts. This has since decreased to 2.5 billionnaira. Out of this, the State pays 2 billion naira as salary and wages to its workersand pensioners. By the time we pay Social Security for the elderly and the YouthVolunteer scheme, this would have translated to only a little more than 400 millionnaira for every other task for which we carry the burden of a heavy trust. Myadministration inherited a system of Internally-Generated Revenue (IGR) whichtotalled about 109 million naira monthly. However, we increased that within oneyear to 600 million naira. We did this not by adding new taxes, but only by blocking 2013 Budget Speech by Gov. Kayode Fayemi of Ekiti State, Nigeria, Thurs. Dec 6, 2012 Page 3 of 33
  • 4. existing loopholes in the tax collection and management system. Our goal insucceeding years will be to focus on the informal sector and widen the tax base ofthe state.Reclaiming the TrustIt is gratifying to elaborate on how much we have been able to achieve in two years,despite all the odds. I am particularly grateful that we have not betrayed the trustthat was invested in us by the people of Ekiti State and that the people of the Statewho were apprehensive initially have now become the champions of our approachto governance. The cordial and productive interdependent relationship that hasexisted between my administration and the good people of Ekiti State has made itpossible for us to make giant strides in the execution of our 8-Point Agenda. The 8-point Agenda include Governance; Infrastructural Development; Agriculture;Education and Human Capital Development; Healthcare Services; IndustrialDevelopment; Tourism; and Gender Equality and Empowerment.Here, I will not go into all the details of how we have reclaimed the trust in the lasttwo years. This administration has published this in another document ‘2 Years inOffice of Dr. Kayode Fayemi Administration – An Account of Stewardship’. What isimportant here is to highlight the key areas in which we have maintained thehonour of our land (Ekitiland) and kept our promises. 2013 Budget Speech by Gov. Kayode Fayemi of Ekiti State, Nigeria, Thurs. Dec 6, 2012 Page 4 of 33
  • 5. In the area of governance, and based on our recognition of good governance as thefoundation of a developmental agenda, we have turned regular interactive sessionswith Ekiti people into a tradition of governance. As the governor, and with the helpof other government officials, I have exemplified our trust in the people as the bestjudges of our activities in government by keeping them abreast of government’sactivities. For instance, prior to the preparation of the 2012 budget, alongside themembers of the Ekiti State Executive Council, we toured the 16 Local GovernmentAreas in the State to know the needs of all the communities. Subsequently, weintegrated these into the State’s budget. Another key example of the fact that we arerunning an effective, responsive and representative government, one that is alive tothe challenges faced by the citizens of the state, is the Social Security Programme forthe aged which we pioneered in Nigeria. We have paid, and will continue to pay, amonthly stipend of N5,000 to all registered elderly people in the state who areabove the age of 65. No less than 20,000 senior citizens are benefitting from thisprogramme.One of the biggest challenges to socio-economic development that we found uponassumption of office was the decrepit state of infrastructure in the State. We hadmade a promise that we would establish optimum communities that will improvecitizens’ lives and attract investments by making all parts of Ekiti accessible by major 2013 Budget Speech by Gov. Kayode Fayemi of Ekiti State, Nigeria, Thurs. Dec 6, 2012 Page 5 of 33
  • 6. roads, and making water dams function well, among others. In fulfilling thesepromises, we embarked on massive road construction projects across the state.There are 20 on-going projects initiated by the State Ministry of Works andTransportation. Another 25 road projects which the Ministry inherited were takenover and are at different stages of completion. As we celebrated our secondanniversary in office, no fewer than ten of the roads were commissioned, and manymore billed for commissioning before the end of the year.In the context of infrastructure, we have also paid a lot of attention to urbanrenewal, not only in terms of the construction of good roads, but also in terms ofthe beautification of Ekiti cities. The State’s capital is our first point of attention.Rural electrification, water supply and community development have also received alot of attention. The efforts in all these areas have eased the burden of life andliving for millions of the citizens of the state. On roads, in addition to what hasbeen achieved in the State Capital, we will focus on township roads in our olddivisional headquarters of Ikere, Ikole and Ijero in 2013.In the area of agriculture, our ambition is to revive cocoa plantations and makeEkiti, and by that token, Nigeria, the world leader again in cocoa production. Also,we want to use agriculture as a means of boosting internally-generated revenue andthe creator of massive employment. Against this background, we have embarked on 2013 Budget Speech by Gov. Kayode Fayemi of Ekiti State, Nigeria, Thurs. Dec 6, 2012 Page 6 of 33
  • 7. a comprehensive overhaul of the State’s agricultural policy and put in place policiesand programmes that are changing the agricultural sector in the State. For instance,the Youth-Commercial Agricultural Development Programme (YCAD), which welaunched in April 2012, will generate 20,000 jobs for the youth. Already, 150 newyouth commercial farmers have benefitted from 1,500 related jobs through thisprogramme. In addition to cocoa, we are also focusing on developing the full value-chain of Cassava, Rice and Oil palm. There are several other initiatives that we haveembarked upon in the area of agricultural transformation which will cumulativelyrevolutionise not only the agricultural sector but also the overall economy of thestate, particularly the attraction of Commercial Agricultural players in large scalefarming and processing. For instance, DAATCO, AGCO, Ford Concepts, VeggieFresh and GIL Flour – commercial agriculture operators, have all become active andby 2013 more evidence of their involvement will become clear.As a State that is recognised as the “State of Professors” in Nigeria, our efforts havebeen focused on the transformation of the educational sector and human capitaldevelopment. We have fully embraced the dictum of our late leader, Chief ObafemiAwolowo, who insists emphatically in ‘The Strategy and Tactics of the People’s Republicof Nigeria (1970)’ that “an educated citizenry is indispensable to the satisfactory andsuccessful practice and working of democracy.” Our target is that by 2014 we will 2013 Budget Speech by Gov. Kayode Fayemi of Ekiti State, Nigeria, Thurs. Dec 6, 2012 Page 7 of 33
  • 8. not only maintain the free and compulsory education for students in Ekiti schoolsfrom primary up to senior secondary school, we will also ensure that every studentin our secondary schools in the state will have a computer on his or her desk, whilealso creating special initiatives for physically-challenged students and a sportsacademy for gifted youth.We have achieved a lot of in our plans for massive investment in human capitaldevelopment in Ekiti State,Nigeria. By December 2012, we would have distributed33,000 units of laptops to students, and 18,000 units to teachers. Equally, we haverenovated virtually all our dilapidated school buildings and have distributedsporting equipment worth millions of naira to Secondary Schools in the State.In recognition of the ancient dictum that ‘health is wealth’, we have provided freemedical services for children, pregnant women, senior citizens and the physically-challenged in Ekiti State, Nigeria in the last two years. We have also increased theimmunisation coverage in the state, strengthened the State Ambulance Service,expanding medical assistance to needy patients across the state, and bolstering theState’s capacity for effective healthcare delivery. We have expended resources onEKSUTH and no fewer than 400,000 Ekiti citizens have benefited from the FreeHealth Missions that cover all ages. 2013 Budget Speech by Gov. Kayode Fayemi of Ekiti State, Nigeria, Thurs. Dec 6, 2012 Page 8 of 33
  • 9. Our efforts to jumpstart industrial development in Ekiti State, Nigeria has led tothe creation of technology and industrial parks for small and medium-scaleenterprises, the establishment of micro-credit facilities and the development of agro-allied and solid mineral sectors of the local economy. The signal achievements ofthe administration in this area includes the establishment of the Fountain HoldingsLimited, a special purpose investment holding company which manages theinvestment portfolio of the State and represents the Government in Public-PrivatePartnerships. The Ekiti State Enterprise Development Agency which is charged withencouraging, promoting and coordinating investment activities in the State andthus stimulating economic growth in the State. These two, the new company andthe new agency, have started yielding magnificent results in the efforts toward theindustrialisation of Ekiti State, Nigeria. Concretely, two moribund industrialfacilities, Ire Burnt Bricks Factory (dead in the last 21 years) and Odua EnterpriseCentre (formerly Odua Textiles – equally comatose in the last 23 years), have comeback to life. The new initiative will expand the State’s resources, provide numerousjob opportunities for the citizens of the State and others, encourage the acquisitionof new skills by workers and ultimately enlarge the middle class in the State.All the above are complemented by the massive investment that our administrationis also making in tourism. Almost one billion people engage in tourism annually 2013 Budget Speech by Gov. Kayode Fayemi of Ekiti State, Nigeria, Thurs. Dec 6, 2012 Page 9 of 33
  • 10. around the world. Tourism has come to be recognised as “an activity essential to thelife of nations because of its direct effects on the social, cultural, educational andeconomic sectors.” We cannot but recognize this important area of the economy ofour State which is blessed with some of the most picturesque natural landscape,including beautiful mountains. In fact, our land and people are named after thevery presence of these many mountains – Ile Olokiti. Against this backcloth, and inthe light of the blessings of our topography, my administration’s goal is to makeEkiti State, Nigeria the most attractive destination for relaxation and holidays inNigeria, if not in Africa. In the light of this, we are developing what we call atourism corridor in the State. This includes Efon, Okemesi, Ikogosi, and Ipole-Iloro. For example, the Ikogosi cold and warm spring tourist centre is undergoingan unprecedented turn-around, including the redesigning of the whole landscapewith the construction of villa chalets and an amphitheatre. The first phase of thisnew-look Ikogosi tourist centre which will attract both national and internationaltourists has been commissioned during the second anniversary celebrations.The third of the eight Millennium Development Goals (MDGs) is gender equalityand women’s empowerment. As a government that is conscious of the role of equityand gender equality in ensuring good governance, and one in which a woman is theDeputy Governor (H.E. Mrs. Funmi Olayinka), in the last two years, we have 2013 Budget Speech by Gov. Kayode Fayemi of Ekiti State, Nigeria, Thurs. Dec 6, 2012 Page 10 of 33
  • 11. embraced this MDG by promoting gender equality and women empowerment - soas to maximize the contributions of women who represent half of our population.My Deputy, H.E. Mrs. Funmi Olayinka, has played a critical role in decision makingin ways that brings the voices of our female population forcefully to the table.Our administration is the first in Nigeria to sign into law the Gender-BasedViolence (Prohibition) Bill. This was done in November 2011. We are also the firststate to domesticate the National Gender Policy. The Wife of the Governor has alsoplayed crucial roles in promoting gender equality and women’s empowerment. Inthe last two years, her initiative, the Ekiti Development Foundation (EDF), hasassisted women and children, including educating women on reproductive health,providing financial assistance to boost the economic activities of women at thegrassroots, supporting couples with multiple births, helping women in skillacquisition and leadership training. Overall, we have also been monitoring theprogress of our developmental efforts to ensure that they all help in closing thegender gap and empowers women by providing access to social, economic andpolitical opportunities that would make them enjoy full rights and privileges ascitizens of the state and the country. Our efforts in this area are connected to ouroverarching goal of building citizens from the grassroots up and making povertyhistory in our state. 2013 Budget Speech by Gov. Kayode Fayemi of Ekiti State, Nigeria, Thurs. Dec 6, 2012 Page 11 of 33
  • 12. In all, what we have done is to link governance with infrastructural development,and establish a connection between education and human capital development andgender equality and women empowerment, and tie all these with the need for ahealthy population. The modernisation of agriculture has also been connected tothe massive push for industrial development. Related to all these is the creation oftourist attractions, not only to provide an economic niche for the state, but also asplaces of relaxation for a healthier, more enlightened citizenry – a citizenry that hasgreater opportunities for better income – a citizenry that is able to live more fulfilledlives.PROCESSES FOR THE 2013 BUDGETAs you are aware, the process culminating in the preparation and presentationtoday of the 2013 Budget was a participatory one. The process is driven by MTEFwhich calls for us to start with Medium Term Strategic outlook by sectors. Thisoutlook then shaped our goals plans and initiatives for the next three years fromwhich our immediate 2013 initiatives and action plans were drawn. These initiativesand plans in 2013 form the basis of our capital expenditure for 2013.For the 2013 Budget estimates, we started with fiscal projections of our revenues for2013 through 2015 using macro-economic assumptions and available data at threelevels of likelihood. Baseline revenue was projected to reflect what we can expect 2013 Budget Speech by Gov. Kayode Fayemi of Ekiti State, Nigeria, Thurs. Dec 6, 2012 Page 12 of 33
  • 13. with up to 99% confidence, while Plausible Level of revenue is what we can expectto realise within 60-75% confidence. Finally, we projected Optimistic Level ofRevenue to be what we can expect within 30-40% confidence. These levels ofrevenue then guided the prioritisation of our capital projects. The revenues areallocated to sub-sectors to guide them in prioritizing capital projects necessary toadvance the achievement of set goals and objectives within the Medium TermStrategic Plan. Projects categorised under Baseline (Ranking A) are up to 99%confidence to be cash-backed and implemented. Projects prioritized in the Plausiblecategory are within 60-75% likelihood of implementation subject to realization ofrevenue. Projects in the Optimistic category will be implemented subject torealisation of revenue in that category. Allocation of revenue to each sub-sector in2013 was guided by both the Medium Term Strategic Framework and immediateobjective of the Administration to complete the on-going projects, addressing theneed of the people particularly in provision of water and health care deliveryservices.The comprehensive approach also lends credence to our decision last year toseparate the Budgetary and Economic Planning functions from the Ministry ofFinance and Economic Development. The Ministry of Budget and EconomicPlanning has spearheaded the process of agreeing the MTEF and MTSS in which 2013 Budget Speech by Gov. Kayode Fayemi of Ekiti State, Nigeria, Thurs. Dec 6, 2012 Page 13 of 33
  • 14. Honourable Members of the House have been active. I am happy to report that thisis not just a budget presentation but also the culmination of MTEF process asenshrined in the Fiscal Responsibility Law of 2011. The 2013-2015 Medium TermExpenditure Framework gives a clear perspective of where the Government policieswill take Ekiti by the year 2015. You would also recall that 2015 is the year theMillennium Development Goals which is essentially what our 8 Point Agendamirrors comes to a close. It will therefore be a good time to review where we are onall those practical indices. Although headline figures will always focus on nationalfigures, Ekiti State has done much better than the picture painted nationally. Forexample, if you take the health indices, we are way above the national average interms of life expectancy, child and maternal mortality and HIV infection rates.Complementing the MTEF process is the input by Ekiti people. Since inaugurationas the Chief Executive of our dear State, I have vowed to respect the opinions andview-points of the entire populace in governance. This is critical to us.Consequently, we traversed the length and breadth of the State requesting the inputof every community on its priorities for the coming year. To validate what wascollated during those sessions, I also held a session with Town Unions’representatives on December 1, 2012 where they further confirmed their proposals. 2013 Budget Speech by Gov. Kayode Fayemi of Ekiti State, Nigeria, Thurs. Dec 6, 2012 Page 14 of 33
  • 15. This Budget is therefore a product of wide consultations to reflect the actual needsof the people to whom this government is accountable.It is in this wise that I christened the 2013 Budget as the “BUDGET OFEMPOWERMENT AND CONSOLIDATION”.The size of the 2013 Budget being presented to the Honourable House isN93,616,830,001.00. While the Capital side in N47,200,688,770 or 50.4% of thebudget, the Recurrent Expenditure is N46,416,141,231 or 46.6% of the Budget.All lawful provisions were strictly adhered to in the preparation of the 2013 Budget.The role of this distinguished House is manifestly clear in examining the Budgetproposal and appropriate funds to projects for the realization of the collectiveobjective of government and the aspirations of our good people in the State. Thiscrucial function is strategic and cannot be wished away. I am proud to say that theHouse has not shirked in these sacred and onerous responsibilities since itsinauguration.Mr. Speaker and the distinguished Honourable Members, I must thank you mostsincerely for the critical role you played particularly in the outgoing year whichmade the State one of the most peaceful and fast-growing economies in thefederation. You provided the enabling environment that made governanceproductively challenging through your robust debates and candid opinions on issues 2013 Budget Speech by Gov. Kayode Fayemi of Ekiti State, Nigeria, Thurs. Dec 6, 2012 Page 15 of 33
  • 16. of great importance to the State and its people. This has continued to make theState attractive to investors and development partners who are now showingconsiderable interests in our initiatives and policies.RESTRUCTURINGIn line with the budget focus on empowering our citizens in our quest to makepoverty history, the government considers it as a deliberate policy to put together allstrategies geared towards direct grassroots and community empowerment. Thisinforms our decision to create a full-fledged ministry to fit into the policy thrust ofgovernment aimed at further tackling poverty and its inherent debilitatingconsequences. The new ministry is to bring together Community Development,Rural Development, Cooperative Services and Social Mobilization and will becharged with the responsibility of coordinating all anti-poverty strategies henceforth.This Ministry will take full responsibility for interfacing with Towns’ Unions, localcooperatives, rural integration and social mobilization at the grassroots level – all ofwhich constitute major priorities in the year 2013-2015.THE 2013 BUDGETIn addition to our focus on community empowerment, another priority of thisbudget is to complete the on-going capital projects and incorporate the requests of 2013 Budget Speech by Gov. Kayode Fayemi of Ekiti State, Nigeria, Thurs. Dec 6, 2012 Page 16 of 33
  • 17. the people of the State during my tour of the Local Government Areas. We shallstick conscientiously to the tenets and cardinal programmes of my great party -TheAction Congress of Nigeria (ACN). We shall also consolidate our achievements inthe area of free Health and Education services. Other policy thrusts or objectives ofthis Administration in the next fiscal year are listed below:OBJECTIVES OF THE 2013 BUDGET(i) Empowerment of rural communities through the expansion of community development initiatives;(ii) Commitment to the completion of all critical on-going capital projects that are Central to the 8-Point Agenda;(iii) Increasing the effectiveness and functionality of the health sector with a view to improving the quality of health care delivery services;(iv) Improvement in socio-economic infrastructure such as rural/urban roads, rural/urban water supply and rural electrification;(v) General reduction in the level of poverty of the citizenry through the provision of a conducive environment for job creation, youth and women empowerment;(vi) Improvement in the quality and functionality of education; 2013 Budget Speech by Gov. Kayode Fayemi of Ekiti State, Nigeria, Thurs. Dec 6, 2012 Page 17 of 33
  • 18. (vii) Provision of enabling environment for food security and agro-based industries with immense private sector participation;(viii) Aggressive pursuit of the agenda of making Ekiti a destination of choice for tourists;(ix) Maintenance of efficient, effective and well motivated public service for enhanced productivity;(x) Radical expansion of the internal revenue base through a pragmatic and sustainable approach; and(xi) Sustenance of good governance through budget discipline, probity and accountability in the utilization of public funds.2013 REVENUE PROJECTIONSStatutory Allocation N31,448,586,848.00 33.6%VAT N7,332,124,692.00 7.8%FAAC Augmentation N8,563,278,306.00 9.1%Internally Generated Revenue(Including Signage Agency) N14,032,382,576.00 15.0%External Grants (Draw Down) N4,626,894,773.00 4.9% 2013 Budget Speech by Gov. Kayode Fayemi of Ekiti State, Nigeria, Thurs. Dec 6, 2012 Page 18 of 33
  • 19. MDGs Conditional Grants Scheme N1,100,000,000.00 1.2%Loan – Internal Loan / Bond N7,125,362,807.00 7.6%Grant from Federal Govt.(Reimbursement on Federal RoadProjects handled by the State) N5,000,000,000.00 5.3%Ecological Fund N525,000,000.00 0.6%Others: Sundry Incomes N13,863,200,000.00 14.8%TOTAL = N93,616,830,001.00 100%RECURRENT EXPENDITUREA total sum of N46,416,141,231.00 has been earmarked for the recurrentexpenditure of government in the next fiscal year. This represents 49.6% of thetotal budget. With this, Government expects to meet the following obligations:Personnel Cost N8,327,819,429.00 8.9%Other Charges N4,729,786,390.00 5.1%Grants to ParastatalsAnd Tertiary Institutions N14,392,966,764.00 15.4% 2013 Budget Speech by Gov. Kayode Fayemi of Ekiti State, Nigeria, Thurs. Dec 6, 2012 Page 19 of 33
  • 20. Transfer to Other Funds N11,453,921,149.00 12.2%Consolidated RevenueFund Charges N7,511,647,500.00 8.0%Total Recurrent Expenditure N46,416,141,231.00 49.6%LABOUR RELATIONSThe government places high priority on the welfare of its labour force and it shallcontinue to support the workers in all ramifications to contribute maximally to thegrowth and development of our dear State. This is the reason behind the fullimplementation of the new minimum wage of N19,300.00 in Ekiti State, Nigeriaeven though the national minimum wage is N18,000.00.This singular effort of the government to make its workers happy and motivated forhigh productivity has its effect on the finances of the State Government as well. Inactual fact, since the implementation of the new salary structure, the wage bill forthe core Civil Service of the State has recorded a progressive increase from N4.9billion in 2011 to N7.3 billion in 2012 or 7.9% of the total budget. In the year2013, a sum of N8.3 billion or 8.9% of the total budget has been earmarked as corepersonnel cost excluding pension and gratuity obligations. By simple calculation, 2013 Budget Speech by Gov. Kayode Fayemi of Ekiti State, Nigeria, Thurs. Dec 6, 2012 Page 20 of 33
  • 21. what the government is paying in 2013 is double its figures in 2011 when the newminimum wage was yet to be implemented without corresponding increase in theallocation from the Federation Account.While expressing deep appreciation to labour and the entire workforce of EkitiState for their understanding and cooperation with the government, it is necessaryfor me to state here that all of us have roles to play in making Ekiti State, Nigeriabecome the land of our dream. This is why all of us should be prepared to beinvolved not only in enjoying the public privileges but also the obligations to the‘Land of Honour’.Mr. Speaker and distinguished Honourable Members, as I noted in my address tothe people of Ekiti State, Nigeria during the celebrations of the second anniversaryof this administration, all of us are living witnesses to the parlous state of theeconomy of the Ekiti in October 2010, when this administration was inaugurated. Istated the obvious fact then that “over N40 billion was hanging precariously on theState along with many uncompleted and abandoned projects in all sectors. At thattime, the State was collecting 2.8 billion naira monthly from the FederationAccounts. This has since plummeted to 2.5 billion naira. Yet, the State commits 2billion naira to salaries and wages to its workers and pensioners.” This does notexcuse us from reaching to other critical areas of need on recurrent basis includingthe payment of Social Security stipends to the elderly as well as those engaged in theYouth Volunteer scheme. In spite of this, physical development areas have to be 2013 Budget Speech by Gov. Kayode Fayemi of Ekiti State, Nigeria, Thurs. Dec 6, 2012 Page 21 of 33
  • 22. attended to as a matter of priority even though our Internally-Generated Revenue(IGR) accounted far lesser than our needs.In these circumstances, the workers have to show enough understanding on theneed to generate more funds to service government activities including the regularpayment of salaries as well as other social welfare packages. For instance, there havebeen some misgivings on the implementation of the new tax regime which is alegitimate tax code adopted by the Federal Internal Revenue Service. I like to statethat this is a national issue and not peculiar to Ekiti State, Nigeria.Again the issue of trust has come to play in understanding government intentions. Ilike to reiterate that this government is the people’s government and would doeverything to justify the people’s confidence at all times. We are determined toconsolidate on our efforts at reclaiming the people’s trust as an art of governance.We will not falter in this determination.This Administration shall continue to support any scheme that would improve thewelfare of the entire workforce. This we demonstrated in the re-introduction of thecancelled loan schemes. Training and re-training of the workforce shall also beaccorded a high priority. The welfare of our senior citizens i.e. retired workers shallalso continue to receive adequate attention of this government. To this end, a sumof N2,800,000,000.00 has been set aside in the 2013 budget for payment ofpensions and gratuities. 2013 Budget Speech by Gov. Kayode Fayemi of Ekiti State, Nigeria, Thurs. Dec 6, 2012 Page 22 of 33
  • 23. Highlights of Key Recurrent Expenditure:(a) Subventions:The Judiciary = N872,500,800.00College of Education = N1,800,000,000.00Ekiti State University, Ado = N2,520,000,000.00Teaching Service Commission = N6,882,725,007.00BSES = N237,564,800.00SUBEB = N175,809,621.00Agric. Development Project = N150,000,000.00Water Corporation = N235,799,600.00University Teaching Hospital = N141,149,537.00(b) Other recurrent expensesCar & Housing Loans = N100,000,000.00Scholarship Scheme = N95,707,303.00CAPITAL EXPENDITUREMr. Speaker and the Distinguished Honourable Members, sustained fight againstpoverty occupies a prime place in this Government in 2013 fiscal year. We have noalternative but to make the scourge history in Ekiti State, Nigeria. In doing this,our programmes shall be focused on making the rural dwellers economicallyindependent through active empowerment programmes. In addition, there will be 2013 Budget Speech by Gov. Kayode Fayemi of Ekiti State, Nigeria, Thurs. Dec 6, 2012 Page 23 of 33
  • 24. adequate provision of water, rural electrification and rural roads. Government hasalso made provision of N580.2 million in the 2013 proposed budget as itscounterpart contribution for the construction of 5km road per Local Government.Our youth and women folk shall also be empowered. The Free Education andHealth programmes shall be sustained and pursued with vigour. Consequently, weare proposing a total sum of N47,200,688,770 for capital projects in the 2013 fiscalyear. This amount represents 50.4% of the total budget. The fund is distributedacross sectors as follows. 2013 Budget Speech by Gov. Kayode Fayemi of Ekiti State, Nigeria, Thurs. Dec 6, 2012 Page 24 of 33
  • 25. 2013 over 2012 2013 SECTOR SUBSECTOR 2012 BUDGET 2013 BUDGET 2012 DIST DIST 0201 117.9% 22.0% 23.6%02 Administrative Administrative 9,445,364,575 11,137,965,75902 Administrative Total 9,445,364,575 11,137,965,759 117.9% 22.0%03 Economic 0302 Agriculture 919,765,000 2,272,271,120 247.0% 2.1% 4.8% 0302 Industrial 63.7% 5.1% 3.0% Development 2,189,932,030 1,396,000,000 0303 Tourism 1,070,392,012 1,499,000,000 140.0% 2.5% 3.2% 0304 96.7% 46.2% 40.7% Infrastructure 19,857,750,971 19,202,265,39003 Economic Total 24,037,840,014 24,369,536,510 101.4% 55.9% 51.6% 0401 Education & Human 137.4% 6.0% 7.5% Capital04 Social Services Development 2,560,951,626 3,518,259,982 0402 Health 160.9% 5.6% 8.3% Care 2,426,948,447 3,903,795,755 0403 Women Empowerment, 87.6% 3.1% 2.5% Youth & Sports 1,353,471,142 1,185,000,00004 Social Services Total 6,341,371,215 8,607,055,737 135.7% 14.8% 0501 Land/Physical 119.3% 2.9% 3.2%05 Environmental Planning. 1,246,503,178 1,487,000,000 0502 83.8% 4.4% 3.4% Environment 1,907,992,269 1,599,130,76405 Environmental Total 3,154,495,447 3,086,130,764 97.8% 7.3%Grand Total 42,979,071,251 47,200,688,770 109.8% 100.0% 100.0% ECONOMIC SECTOR We have Agriculture, Rural Development, Industrial Development, Tourism and provision of various infrastructures such as road construction/rehabilitation, Housing development, Electricity, provision of potable water. As a result of its importance to the people, the sum of N23,758,000,000.00 - 57.03% of the total 2013 Budget Speech by Gov. Kayode Fayemi of Ekiti State, Nigeria, Thurs. Dec 6, 2012 Page 25 of 33
  • 26. capital budget has been earmarked for this sector in the next fiscal year. Below is thehighlight of the fund distribution to sub-sectors of the Economic Sector.Ministry of Agriculture and its Agencies:Main Ministry of Agriculture = N1,609,268,402.69Agric. Development Project (ADP) = N350,900,000.00Farm Settlement scheme = N133,000,000.00Ekiti State Marketing Development Board = N30,000,000.00Bureau of Rural Development = N230,631,579.31Industrial Development:Ministry of Commerce = N354,000,000.00Ekiti State Enterprise DevelopmentAgency = N247,500,000.00Multi-purpose Credit Agency = N28,000,000.00Job Creation & Employment Agency = N187,500,000.00Ministry of Labour, Productivity &Human Capital Development = N60,000,000.00Infrastructural DevelopmentThis sector is of priority to this Administration. The entire proceeds from the Bondsecured by the state are being expended on infrastructural development. To this 2013 Budget Speech by Gov. Kayode Fayemi of Ekiti State, Nigeria, Thurs. Dec 6, 2012 Page 26 of 33
  • 27. end, the sum of N18,154,000,000.00 of the entire budget has been set aside forrecurrent and several other capital projects under Infrastructure. Few of theprojects are listed below.Road Projects = N9,956,000,027.00Public Buildings = N6,278,700,000.00Electricity = N1,280,000,000.00Water Corporation = N2,084,000,009.00Rural Water Sanitation Projects = N120,000,000.00Ekiti State Traffic Management = N100,000,000.00Public Works Corporation = N467,000,000.00Housing Development = N209,572,103.46SOCIAL SERVICES SECTORProvision of social services for the generality of our people in Ekiti State, Nigeria iscritical to this government. Education and Health care services which are the coreprogrammes of my Great Party –The Action Congress of Nigeria (ACN), would beadequately funded. A total sum of N2,488,000,000.00 or 5.97% of the total Budget 2013 Budget Speech by Gov. Kayode Fayemi of Ekiti State, Nigeria, Thurs. Dec 6, 2012 Page 27 of 33
  • 28. is allocated to the Education sub sector. In this token, a sum of N3,629,000,000.00or 8.71% of the total budget is set aside for Health programmes.In view of our commitment to gender equality and youth development, thisadministration shall give the required logistics and support to strengthening existinggender based programmes in the State.Our youth are the building blocks of our future. We plan to attract major youthempowerment programs to Ekiti State, Nigeria in 2013 and also develop avenues toproductively engage our youth through competitive activities such as debates, quiz,Sports Competition etc.Education Sub-Sector:Main Ministry of Education = N451,099,982School Enterprises = N30,000,000SUBEB = N2,010,000,000Board for Technical & Vocational Education = N142,000,000Ekiti State University (including Collegeof Medicine) = N650,000,000College of Education = N51,900,000Health Sub SectorMain Ministry of Health = N2,163,795,755College of Technology, Ijero-Ekiti = N175,000,000 2013 Budget Speech by Gov. Kayode Fayemi of Ekiti State, Nigeria, Thurs. Dec 6, 2012 Page 28 of 33
  • 29. University Teaching Hospital = N750,000,000Primary Health Care Development Agency = N245,000,000Central Medical Store = N196,900,000Hospitals’ Management Board = N151,000,009State Action Committee on Aids (Ekiti SACA) = N64,000,000Information Services:Ministry of Information = N151,500,000Broadcasting Service of Ekiti State = N230,000,009Government Printing Press = N198,012,000Sports Development:Construction of Indoor Sports Hall atOlukayode Stadium = N40,000,000Establishment of Sports Academy = N50,000,000Provision of Sports Equipment = N10,000,000Women DevelopmentWomen Empowerment Programmes = N188,100,009Construction & equipping of WomenDevelopment Centre at Ado-Ekiti = N194,900,000Multiple Birth Trust Fund = N50,000,000 2013 Budget Speech by Gov. Kayode Fayemi of Ekiti State, Nigeria, Thurs. Dec 6, 2012 Page 29 of 33
  • 30. ENVIRONMENTAL SECTORThis administration shall maintain a cleaner environment across the state.Considerable attention will be given to Ado Ekiti, the State capital to make it amodel and a reference point among other state capitals in the Federation. TheUrban Renewal programmes shall be extended to other local Governmentheadquarters. A total sum N3,294,000,000 or 7.91% is allocated for capitalexpenditure in the sector in year 2013. The fund is allocated to the under listed sub-sectors:Environmental DevelopmentMain Ministry of Physical, Urban & Regional Planning = N347,000,000Bureau of Lands = N450,000,000Office of Surveyor General = N251,000,000Urban Renewal Agency (Formerly CUDA) = N425,000,000Ministry of Housing and Environment = N82,180,097State Environmental Protection Agency (SEPA) = N503,900,667Waste Management Board = N181,386,848Ministry of Special Duties = N577,121,215Emergency Services Department = N41,895,512ADMINISTRATIVE SECTORMr. Speaker and the distinguished Honourable Members, the roles of GeneralAdministration as the central co-ordinator of all government activities in the Stateare quite engaging. It is therefore very important to accord this sector the desired 2013 Budget Speech by Gov. Kayode Fayemi of Ekiti State, Nigeria, Thurs. Dec 6, 2012 Page 30 of 33
  • 31. attention. The total allocation for the administration Sector is N7,317,000,000.00or 17.56% of the total capital budget.Internal SecurityThis Administration is happy with the relative peace, law and order that prevailedin the State in the out-going year. This was made possible by the effort anddetermination of the law enforcement agencies that were always on the alert. Ouradministration will within its limited resources, provide logistics for our law-enforcement agencies to enable them perform optimally. Our Royal Fathers werealso supportive as they ensured that peace reigned supreme in their respectivedomains. We shall not relent on this effort in the coming year. In light of the gapsthat still plague our internal security situation in the State, 2013 shall see theintroduction of Ekiti State Peace Corps which will focus on complementing theefforts of law enforcement agencies. Further steps will be taken in the coming yearto make the State crime free. I enjoin the peace loving people of Ekiti State, Nigeriato volunteer useful information to the law enforcement agencies so as to guaranteethe security of lives, investment and property.The LegislatureI am happy to note that the venue of this budget presentation is arguably the mostelegant Legislative House in the country. Among others, it is a beauty to behold.This has however given us an added responsibility to maintain the structure. Wewill not shirk in this responsibility. We have made adequate provision in the 2013Budget for proper maintenance of the edifice. 2013 Budget Speech by Gov. Kayode Fayemi of Ekiti State, Nigeria, Thurs. Dec 6, 2012 Page 31 of 33
  • 32. I make bold to say that this 4th Assembly has stood out as a testimonial of the virtueof the Ekiti people for excellence and high productivity. I note with satisfaction thatthe 4th Assembly has successfully passed Fifty One (51) bills into law within one anda half years of its inauguration. Forty One of these have already received the assentof Mr. Governor and if the four bills passed by the 3 rd Assembly are added to thefigure, 45 Laws have been signed within two years of this administration. This is arecord I doubt if any Assembly would break for a long time to come.Once again, I like to commend the Honourable members for the achievements ofthe House so far. This has made you to be celebrated across the country, I joyfullyidentify with the good reputation you have cut for yourselves within the shortperiod of your inauguration. The giant strides are very commendable. I urge you notto rest on your oars. I also request, for the good of our people, your continuedcooperation and constructive appraisal of our policies. Since it is for common good,I promise to take good notice of this with every sense of responsibility and candour.This Administration shall continue to support the House most especially in the areaof funding and any other assistance it may require from the Executive within thelimited resources available to the government.The JudiciaryThe importance of the Judiciary as the third arm of Government cannot be over-emphasised. As the last hope of the common man, we will continue to respond tothe needs of this very important arm of government for it to achieve its statutoryresponsibilities. The 2013 Budget has made provision for the construction of newoffice buildings to ameliorate the hardship of shortage of accommodation in theJudiciary. All other needs such as office furniture and equipment, utility vehicles 2013 Budget Speech by Gov. Kayode Fayemi of Ekiti State, Nigeria, Thurs. Dec 6, 2012 Page 32 of 33
  • 33. have also been addressed in the 2013 proposed budget. It is my expectation that thethird arm of Government would sustain the tempo of quick dispensation of justicefor the sake of those awaiting trial.ConclusionRight Honourable Speaker and the Honourable members of this distinguishedhouse, this budget is a document that has articulated the policies and programmesof the government to achieve the collective aspirations of the good people of EkitiState, Nigeria in the year 2013. It is our resolve to faithfully implement theprovisions as passed by this Assembly.It is now a singular honour for me to formally present to you the proposed 2013Budget, the “BUDGET OF EMPOWERMENT AND CONSOLIDATION”. Ipray that the implementation of this budget will bring the desired growth anddevelopment to our people and Ekiti State, Nigeria, the Land of Honour, Ile Iyi, IleEye.Thank you.Wishing you a Merry Christmas and Happy New Year in Advance.DR. JOHN ‘KAYODE FAYEMI,GOVERNOR,EKITI STATE, NIGERIA 2013 Budget Speech by Gov. Kayode Fayemi of Ekiti State, Nigeria, Thurs. Dec 6, 2012 Page 33 of 33

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