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0 1 BUDGE

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INTRODUCTION

What is a budget?

A budget shows what the government

expects to collect as revenue, what

grants it expects to receive, how much

it expects to save or borrow and what

the government plans to spend on.

A budget document is a document that

contains details about how the

government plans to spend our

communal wealth – the taxpayers

money. Federal, State and Local

Governments all have a budget

document which is called an

Appropriation Act or Appropriation

Law as the case maybe.

In a democracy, every responsible

citizen has the right to know how

communal wealth is being expended in

the delivery of public infrastructure

and services.

What is Citizens Budget?

A Citizens Budget is a simpler, less

technical version of a government’s

budget specifically designed to present

key information that is understandable

by the general public. Citizens Budgets

can vary widely in focus, content and

length and be presented in a number of

ways, ranging from a simple brochure

to a comprehensive report. Citizens

Budget should also be accessible to the

general public including being

published online on an official state

website.

Why is Citizens Budget important?

Every citizen has the right to know

how the commonwealth of the state is

expended in the delivery of public

service. State Government must ensure

that citizens have a good understanding

of how the budget directly affects their

lives.

Citizens Budget fosters a greater

understanding of how public funds are

utilized especially if the information

presented is in a more accessible

format than the standard government

budgets.

Although they are not meant to replace

more detailed budget documents, they

are important for informing citizens

and the civil society and contribute to

the effort of increasing government

accountability on how it manages

public funds.

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BUDGET GLOSSARY

Total Budget Expenditure: This is

the total amount of budget for the given

year. It is the summation of both the

Recurrent Expenditure and Capital

Expenditure as approved by the State

House of Assembly and assented to by

the Executive Governor. This is how

the government plans to spend on

behalf of the citizens, according to the

resources it manages.

Revenue: Revenue is all the amount of

money the government believes it will

collect during the year from recurring

taxes, levies, and fees; put simply, this

refers to money collected on behalf of

citizens. States in Nigeria receive a

share of revenues collected federally

such as oil revenues, corporate income

taxes, VAT and excise duties.

These are called statutory allocation.

VAT and other statutory revenue in the

budget are transferred to the states

from the federation accounts.

Revenues that the State directly

collects and retains for its own use are

called internally generated revenue

(IGR). IGR includes personal income

taxes, road taxes, property taxes etc.

Grants: A grant is one of the

government’s source of funds for

funding ideas and projects to provide

public services, stimulate the

economy, and benefit the general

public. Grants could be either foreign

or domestic and is normally provided

for a specific project and set of

expenditures. Grants are not

borrowing/loans so do not need to be

paid back after it has been used for the

intended project and set of

expenditures.

Budget Deficit: This is generally the

difference between what the

government intends to spend on

expenditures and the revenue

generation capacity. A deficit occurs

when the expenditure figure is higher

than the revenue and grants figure. The

total budget financing is the

summation of all the financing the

government intends to raise through

borrowing/loans (domestic and

foreign), sales of government assets or

other financing items.

Loans: Another source of funds for the

government to finance the budget is a

loan. Government borrows to finance

its annual budget generally when

revenues and grants are not enough to

fund all the expenditures in the budget.

Loans could be from domestic and or

foreign sources. Loans can be for a

specific project or set of expenditures

or could be used to finance general

budget expenditures.

Why does the Government borrow?

When the government intends to spend

more money than they expect to collect

as revenue and receive in grants, the

budget is in deficit. When they intend

to spend less than what they expect to

collect in revenue and receive in

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grants, the budget is in surplus. A

balanced budget is a budget where total

revenues are equal to the total

expenditures for the year. When the

budget has an expected deficit, the

government will need to finance the

budget deficit. It can do this through

sales of government assets or through

borrowing. Borrowing can be from

banks, multilateral institutions, the

federal government or from investors

through the capital market.

Recurrent Expenditure: This refers

to recurring payments: wages and

salaries for civil servants; overhead

costs (electricity bills, purchase of

diesel); consolidated revenue account

charges; transfers (to local

government, for example); interest

payments on existing loans; and other

(subsidies, for example).

Personnel Cost: include salaries,

allowance, and other benefits that

Government pays to its workers (civil

servants).

Overhead Cost: These are any regular

expenses which are not paid directly to

a civil servant or other government

workers, including amounts billed

directly to customers. Overheads must

be paid for regularly. Examples are

electricity bills, water bills, buying

diesel for generators, or the money

spent on travelling during work, by

civil servants.

Capital Expenditure: Capital

Expenditure is money spent by

government to acquire or build fixed

capital assets, land, or intangible

assets. Capital Expenditure is how

much is used for projects like the

building of schools, hospitals, roads, or

buying security equipment. Capital

Expenditure is sometimes called

“Capex”.

Sectoral Allocation: Expenditure is

allocated to different ministries,

departments, and agencies (MDA).

Each MDA will have an approved

budget of recurrent and capital

expenditure as part of the overall

approved state government budget to

run its daily activities as well as carry

out projects associated with them,

respectively.

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Dr. Barry Gbe

Honourable Commissioner for

Economic Planning

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GENERAL FRAMEWORK

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WHERE WILL THE MONEY COME FROM?

REVENUE AND FINANCING

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HOW WILL THE GOVERNMENT SOURCE THE GRANTS?

GRANTS

N24.39bn

N4.06bn

DOMESTIC GRANTS FOREIGN GRANTS

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HOW WILL THE GOVERNMENT SOURCE THE LOANS?

LOANS

N41.86bn

N0bn

Domestic Loans Foreign Loans

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N85.30bn

N210.63bn

N56.06bn

N25.97bn

N6.00bn

Personnel Cost

Capital Cost

Overhead Cost

Consolidated Revenue Charges,

Social Contribution, Social Benefit, Domestic Loan,

Repayment, External Loan Repayment and Grants and

Contribution

Transfers Interest Payments

Other Recurrent

Expenditure

WHERE DOES THE MONEY GO?

EXPENDITURE

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Top Sector/Ministry Allocation

Personnel Cost

Overheads and Other Recurrent

Recurrent Expenditure

Capital Expenditure

Ministry of Works

343,034,766

31,400,000

374,434,766

69,659,711,358

Ministry of Basic Education and its Parastatals

25,984,804,579

1,854,499,976

27,839,304,555

14,276,377,924

Ministry of Energy

357,149,586

2,749,750,000

3,106,899,586

6,228,750,671

Delta State Capital Territory Development Agency

125,000,000 125,000,000 5,399,000,000

Ministry of Agriculture 1,462,629,543 37,200,000 1,499,829,543 2,049,462,663

Job creation office 80,000,000 80,000,000 1,000,000,000

Ministry of Trade and Investment

367,462,371

94,450,000

461,912,371

9,419,357,477

Ministry of Housing

243,825,673

64,612,136

308,437,809

8,560,627,564

Ministry of Health

13,723,565,147

721,760,000

14,445,325,147

6,209,940,132

Ministry of Urban Renewal

20,000,000

20,000,000

3,481,467,425

Ministry of Higher Education

15,179,407,494

1,407,200,000

16,586,607,494

4,458,393,693

Warri, Uvwie & Environs Development Agency

125,000,000 125,000,000 6,595,000,000

Delta State Sports Commission

1,078,321,274 1,125,000,000 2,203,321,274 1,878,065,000

Ministry of Youth Development

150,287,106

103,500,000

253,787,106

1,269,196,846

Ministry of Technical Education

474,500,000

474,500,000

5,681,064,546

Ministry of Water Resources

842,564,505

73,483,940

916,048,445

1,892,971,962

Directorate of Culture & Tourism

480,390,712

103,775,000

584,165,712

979,500,000

Total Budgeted Expenditure

85,303,761,431

88,025,065,137

173,328,826,568

210,625,771,321

TOP SECTORAL ALLOCATIONS

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Project Line

Ministry/Agency Location(s) LGA Amount

Agro-Industrial Park Ministry of Trade & Investment

Aboh-Ogwashi

Aniocha South

4,000,000,000

Construction of 19 New Technical Colleges in the State

Ministry of Technical Education State wide State wide

3,800,000,000

Constituency Projects (DTHA)

Ministry of Basic and Secondary Education State wide State wide

3,000,000,000

Renovation/Rehabilitation/Construction of Public Primary & Secondary Schools Across the State including Water and Toilets.

Ministry of Basic and Secondary Education State wide State wide

2,500,000,000

Construction of New Roads/Development of Asaba & Environs

Delta State Capital Territory Development Agency Asaba

Oshimili South

2,200,000,000

Construction of Trans Warri - Ode-Itsekiri Bridges and Access Roads Phase I: Section I Ubeji to Ode-Itsekiri Roundabout with Spurs to Ijala Ugbodede, Orugbo and Ajigba - Inorin - Usele Communities and Section II (iii) Ode-Itsekiri Internal Roads Ministry of Works

Ode-Itsekiri

Warri South

2,000,000,000

Construction of Ewu Bridge across Orere River, Ughelli South LGA Ministry of Works Ewu

Ughelli South

2,000,000,000

Development of New Central Secretariat Complex. Ministry of Housing Asaba

Oshimili South

2,000,000,000

Construction of New Roads in Warri, Uvwie and Environs

Warri, Uvwie and Environs Development Agency LG Wide

Warri South & Uvwie

2,000,000,000

Construction of Storm Water Discharge Channels and Erosion Control Measures for Warri and Uvwie

Warri, Uvwie and Environs Development Agency LG Wide

Warri South & Uvwie

2,000,000,000

Dualisation of Ughelli-Asaba Road, (Sector A). Ministry of Works State wide State wide

1,500,000,000

Completion of the Dualisation of Ughelli-Asaba Road (Sector C2) Ministry of Works State wide State wide

1,500,000,000

Ughelli Asaba Road Interchange Ministry of Works State wide State wide 1,500,000,000

TOP CAPITAL ALLOCATIONS

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Payment for ongoing and completed projects Ministry of Works State wide State wide

1,400,000,000

Special Projects

Ministry of Basic and Secondary Education State wide State wide

1,400,000,000

Widening of Warri/Sapele Road. Phase I: from Effurun Roundabout to Enerhen Junction (Warri Bus Rapid TRansit (BRT) Project) Ministry of Works Effurun Uvwie

1,200,000,000

Construction of Roads in Delta North Senatorial District Ministry of Works

Delta North

LGAs in Delta North

1,200,000,000

Construction of Roads in Delta South Senatorial District Ministry of Works

Delta South

LGAs in Delta South

1,200,000,000

Construction of Roads in Delta Central Senatorial District Ministry of Works

Delta Central

LGAs in Delta Central

1,200,000,000

Establishment of Kwale Industrial Park

Ministry of Trade & Investment Kwale

Ndokwa-West

1,000,000,000

Ogheye Floating Market, Warri North

Ministry of Trade & Investment Ogheye

Warri North

1,000,000,000

Construction of Ayakoromor Bridge across River Forcados, Ayakoromor Ministry of Works

Ayakoromor Burutu

1,000,000,000

Completion of the Dualisation of Ughelli/Asaba Road (Sector C1: Km 92 + 000 to Km117 + 000, Ossissa to Kwale Junction, Ogwashi-Uku) Ministry of Works State wide State wide

1,000,000,000

Social Housing Development Scheme across the State (Pilot Scheme) Ministry of Housing State wide State wide

1,000,000,000

Special Upgrade of Tertiary Institutions

Ministry of Higher Education State wide State wide

1,000,000,000

Construction of Kwale-Beneku bridge and approach roads in Ndokwa West and Ndokwa-East LGA Ministry of Works

Kwale-Beneku

Ndokwa East

830,424,722

Construction of Idumebor Internal Roads Ministry of Works Idumebor

Ika North East

800,000,000

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TOP 4 CAPITAL PROJECTS

CONSTRUCTION OF NEW ROADS/

DEVELOPMENT OF ASABA AND

ENVIRONS

N2.2 bn AGRO-INDUSTRIAL PARK

ABOH - OGWASHI

N4.0 bn

CONSTRUCTION OF 19 NEW

TECHNICAL COLLEGES IN THE

STATE

RENOVATION/REHABILITATION/

CONSTRUCTION OF PUBLIC

PRIMARY & SECONDARY SCHOOLS

ACROSS THE STATE INCLUDING

WATER AND TOILETS

N2.5 bn N3.8 bn

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The citizens have the following roles to play in the budget implementation process:

▪ Monitoring of government projects and reporting of observations that require

government interventions.

▪ Channelling of grievances to appropriate government agencies and not take

laws into your hands.

▪ Protection of public facilities including oil and gas installations.

▪ Provision of information to security agencies when there is breach of the peace

in any community.

▪ Regular payment of taxes and other relevant rates

▪ Reporting community needs to government irrespective of where the needs are

situated. Such reports should be addressed to His Excellency, the Governor

through the Ministry of Economic of Planning, Asaba. This should be best done

before a budget preparation process is concluded for every fiscal year.

THE ROLE OF CITIZENS

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CONTACT US: Budget Department

Olorogun Felix Ibru Secretariat

Asaba

Delta State. Website: www.deltastate.gov.ng

Help desk: 08033521915