Rivers State Citizens’ Budget 2020“Budget of Reassurance, Profound Impact for Inclusive Growth and Shared Prosperity ”

PREPARATION OF RIVERS STATE 2020 ANNUAL BUDGET

The planning for 2020 budgeting activities began with sectoral review of the previous year’s budget performance

Preparation of Economic and Fiscal Update (EFU), Fiscal Strategy Paper (FSP) and Budget Policy Statement (BPS). This gave rise to the MTEF which was approved by the Governor and subsequently passed by the Rivers State House of Assembly

Development / Update of Medium Term Sector Strategies. This was held by engaging the Revenue Generating MDA’s on their expected roles in achieving Government revenue targets in the ensuing year.

Budget call Circular. This puts all MDA’s on notice on the preparation of the 2020 Budget.

The Pre-Budget Workshop / Public Consultative Forum

RIVERS STATE PUBLIC CONSULTATION ON 2020 BUDGET PREPARATION, 12TH NOVEMBER 2019

SPECIAL GOVERNMENT ANNOUNCEMENT / INVITATION TO PARTICIPATE IN A PUBLIC CONSULTATION FORUMPublished in Radio Stations Across the State AND Written Invitation Letters

The General Public is by this notice invited to a pre-budget workshop organized by the Ministryof Budget and Economic Planning in preparation for the 2020 Budget Discussion.

All Non – Governmental Organizations, Unions, Associations and Interested Stakeholders arehereby requested to seize this opportunity to be part of the 2020 budget process of the State.

Date: Tuesday 12th November 2019

Venue: Nigeria Bar Association (NBA) Port Harcourt Branch, Main Auditorium,No. 1. Bank Road, Port Harcourt,

Time: 9.00 am prompt

Announcer:Permanent Secretary, Rivers State Ministry of Budget and Economic Planning

RIVERS STATE

PUBLIC CONSULTATION ON 2020 BUDGET PREPARATION

PROCESS - HELD ON 12TH NOVEMBER 2019 AT

NIGERIAN BAR ASSOCIATION (NBA) PORT HARCOURT

BRANCH BUILDING AUDITORIUM

Mrs Titilola Kuna Cline, Permanent Secretary, Ministry of Budgetand Economic Planning, Rivers State, Presiding at the Pre-Budget Workshop / Public Consultation on the 2020 BudgetPreparation with other distinguished Government officials

PHOTOGRAPHS

Cross section of

Participants

Cross section of

ParticipantsMrs Blessing Loveday Idaminabo, Director,

Budget, Monitoring and Evaluation, Ministry of Budget and Economic Planning, Rivers State, presenting a vote of thanks at

the end of the Public Consultation

Cross section of Participants Cross section of Participants

Some members of the Civil Society Organizations making

their contributions at the Public Consultation

RIVERS STATE PUBLIC CONSULTATION ON 2020 BUDGET PREPARATION, 12TH NOVEMBER 2019

RIVERS STATE PUBLIC CONSULTATION ON 2020 BUDGET PREPARATION, 12TH NOVEMBER 2019

MINUTES OF CITIZENS’ CONSULTATIVE FORUM

Date of Meeting: November 12, 2019 Time of Meeting: 9:00 am

Minutes Prepared By: 1. Chief Godwin Amadi (Project Director, Didi Centre for Conflict Resolution2. Dr. Igochukwu Wali, ( Department of Budget, Monitoring and Evaluation

1. State Development Framework:a. Over dependence on FAAC and its dwindling nature as a major constraint on Government ability to sufficiently fund its development

programmesb. Enhancement of IGR potential and collection to fund at least 70% of the development needs of the Statec. Need to deliver basic infrastructure for socio-economic development in accordance with the State’s Development Plan

2. Meeting Notes, Issues, Decisions:a. Impact of budget on Informal sector (Citizens) of the Stateb. Inclusiveness in Budget planning and implementation as it relates to citizens of the statec. Concentration of Government projects in the Capital City ( Port Harcourt and Obio-Akpor Local Governments)d. Challenges experienced in accessing Tax Clearance Certificates and its effects on theCitizens’ incomee. Stakeholders at the forum were encouraged to play their role by ensuring that they pay their taxes as part of their civic responsibility

to contribute to governments’ development programmes in the state.f. Stakeholders were adequately enlightened about criteria for location – siting of Government projects as: Geographical Spread,

maximum benefit of majority of citizens and achieving Government development targetsg. Adequate and regular enlightenment of the citizens about budget planning and implementation through the media and effective

feedback mechanismh. Mode of Revenue collection and reporting to be enhanced to ensure availability of needed funds for Government programmesi. Mode of execution of Government programmes and projects to be transparent to ensure confidence in the systemj. Citizens’ / Community ownership of projects sited in their areas for monitoring and evaluation

Action ResponsiblePerson/Agency

Additional Information

a. Review the concern to understand the impactof the state annual budget on the InformalSector

b. Review concern raised about concentration ofGovernment programmes and projects in theState capital especially, Port Harcourt and Obio-Akpor Local Government Areas to the neglect ofother rural areas.

c. Review observation on difficulty in accessing theState budget booklets for monitoring andtracking of project implementation in theirvarious communities.

d. Review observation on difficulties experiencedin accessing Tax Clearance Certificates from the

Internal Revenue Service and its implications onthe need for improved Revenue generation forthe State.

Ministry of Budget and Economic Planning

Office of the Governor / Ministry of Works

Ministry of Budget and economic Planning

Rivers State Internal Revenue Service

This concern was expressed by a representative of the Rivers State Association of Artists

The observation was raised by a representative of Community development Committee

The concern was raised by a representative of the Traditional Rulers

This observation was expressed by a tax Consultant representing the Informal Sector

3. Action Items

Signature:1. Representative of CSO’S (Chief Godwin Amadi):

2. Government Representative: Dr. Igochukwu Wali(Department of Budget, Monitoring and Evaluation)

RIVERS STATE BUDGET PUBLIC CONSULTATION SESSION

ATTENDANCE SHEET

ATTENDEES: Civil Society Organizations, Traders and Market Associations, Muslim WomenAssociation, Students and Local Government Area Councils

Venue: Nigeria Bar Association (NBA) Port Harcourt Branch, Main Auditorium,No. 1. Bank Road, Port Harcourt,

Date: Tuesday, 12th November 2019

Time: 9:00 am

CITIZENS’ GUIDE TO 2020 RIVERS STATE APPROVED BUDGET ESTIMATES

INTRODUCTION

The citizens’ budget is a simpler, less technical version of the Rivers State Government 2020 Appropriation Law.

This document is presented in a format that enables the general public to understand Government’s programmesand activities for the benefit of the citizens in the year 2020.

The Vision of the Rivers State Government as enshrined in the State Development Plan 2017 to 2027, “is to build aState that is truly united, secure and prosperous with boundless opportunities for every one who lives in it topeacefully pursue their goals and realize their full potentials in dignity and happiness”.

The goals set out in pursuance of this vision is to improve sustainable socio-economic development of the state forenhanced living condition of the citizenry.

THE 2020 BUDGET IN PERSPECTIVE

The 2020 budget estimates was prepared with the consideration to sustainably meet the socio-economicdevelopment needs of the citizens of the state. This was the reason a public consultative forum was held to getinputs from the citizens before the preparation of the 2020 budget estimates.

Government policy thrust for this purpose has been geared towards the following areas of need: Inclusive economic diversification, growth and development Social development Functional infrastructural development to support economic, business and to promote improved productivity

of agriculture, job creation and enabling environment for private sector-led industrialization.

KEY DELIVERABLES OF THE 2020 BUDGET ESTIMATES

To grow and expand the economy, attract investors and create jobs for the citizens of Rivers State

To strengthen and advance educational opportunities for our teeming youths and children and alsodeliver health care to all residents

To improve the safety, security and general wellbeing of all Rivers people including residents andvisitors

Completion of all on-going projects / construction and maintenance of physical infrastructure andfacilities ( roads, water and public buildings).

Investment in projects and programmes that will enhance job creation, employment generation andcontribute to poverty reduction through aggressive agricultural programmes.

GOVERNMENT’S EXPECTIONS

To achieve a healthier citizenry

Better education and more productive economy

More secure and security conscious citizenry, cleaner and eco-friendly environment

A more virile and responsive public service.

CITIZENS’ ROLE IN THE 2020 BUDGET IMPLEMENTATION

Government expects citizens to complement and reciprocate her good intensions in achieving her set targets as contained in the 2020 budget by performing their civic responsibilities in the following areas:

1. Regular payment of taxes

2. Monitoring of on-going government projects and reporting observed lapses to appropriate government agencies

3. Provision of information to security agencies

4. Display ownership and protect public facilities and infrastructure

OPENING BAL/BUDGET FINANCING

(LOANS)

N101.9B

Internally Generated

Revenue (IGR)

N141.8B

Federal Accounts Allocation Committee

(FAAC)

N286.8B

TOTAL BUDGET EXPENDITURE

N530.8B

(100%)

RECURRENT EXPENDITURE

N156.7B

(29.5%)

CAPITAL EXPENDITURE

N374.1B

(70.5%)

2020 BUDGET

GENERAL FRAMEWORKFUNDING PLAN

PERSONNEL COST –N78.2B

OVERHEAD –N18.4B

CRF CHARGES –

N39.9B

OTHER RECURRENT EXPENDITURES –

N20B

BREAKDOWN OF 2020 BUDGET

EXPENDITURE

ESTIMATED TOTAL

EXPENDITURE N530.8B

2020 BUDGET

INFRASTRUCTURE: N90.6B

- Ministry of works (N77b)

- Ministry of Transport (N3b)

- Ministry of Housing (N3.06b)

- Ministry of Power (N2b)

- RS Road Maintenance & Rehabilitation Agency (N1.3b)

- Ministry of Water Resources & Rural Development (N1.2b)

- RS Housing & Property Development Authority (N1b)

- Ministry of Lands (N1b)

- Office of the Surveyor General (N0.5b)

- Ministry of Urban Development & Physical Planning (N0.5b)

EDUCATION: N45B

•Ministry of Education (N45b)

SOCIAL DEVELOPMENT: N19.7B

•Ministry of Sports (N7.5b)

•Ministry of Youth Development (N4b)

•Ministry of Employment Generation & Empowerment (N1.5b)

•Ministry of Women Affairs (N4b)

•Ministry of Social Welfare & Rehabilitation (N2b)

•Ministry of Local Government Affairs (N0.4b)

•Ministry of Chieftaincy & Community Affairs (N0.3b)

AGRICULTURE: N40.4B

•Ministry of Agriculture (N40b)

•Agricultural Development Programme (N0.2b)

•School –to- Land Authority (N0.2b)

HEALTH: N38.9B

•Ministry of Health (N27b)

•RSU Teaching Hospital (N7b)

•R/S College of Health Science & Technology (N3b)

•Primary Health Care Management (N0.6b)

•R/S Hospital Management Board (N0.5b)

•RIVSACA (N0.5b)

•Emergency Medical Services (N0.2b)

•Free Medical Care Programme (N0.1b)

2020 BUDGET: SUB – SECTORAL BREAKDOWN OF TOP CAPITAL EXPENDITUREHow Capital Expenditure Budget Is Distributed According to Priority Projects

COMMERCE AND INVESTMENT

N1.7B

CULTURE AND TOURISM

N0.75B

LAW AND JUSTICE

N2.4B

INFORMATION AND COMMUNICATION

N2.5B

ENVIRONMENT AND SUSTAINABLE

DEVELOPMENT

N5.65B

PUBLIC ADMINISTRATION

N1.8B

OTHER STRATEGIC SUB-SECTOR CAPITAL EXPENDITURE ALLOCATIONS

SOURCES OF FUNDING FOR 2020 REVENUE ESTIMATE

(N)

2020 BUDGET TARGET

(N)

PERCENTAGE OF TOTAL REVENUE ESTIMATE

Internally Generated Revenue (IGR) 141,882,564,351.00 27%

Statutory Allocation 54,037,294,916.00 10%

13% Mineral Fund 120,355,800,000.00 23%

Value Added Tax (VAT) 21,650,119,130.00 4%

Refund from ESCROW/PARIS 2,898,236,033.46 1%

Exchange Gain / Forex Equalization 8,000,000,000.00 2%

Other Capital Receipts 80,000,000,000.00 15%

Opening Balances 31,989,343,188.54 6%

Domestic Credits 60,000,000,000.00 11%

Foreign Credits 10,000,000,000.00 2%

TOTAL ESTIMATED REVENUE 530,813,357,619.00 100%

Where Will The Money Come From?

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 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.

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.

A budget is a document that contains details about how the

Government plans to spend the communal wealth – the

taxpayers’ money. Federal, State and Local governments all

have a budget document which is called an Appropriation

Act.

The Rivers State Government budget shows what the

Government expects to collect as revenue (Internally

Generated Revenue - IGR), what it expects to receive from

Federation Accounts Allocation Committee (FAAC), how much

it expects to save or borrow, and what the Government plans

to spend the State’s revenue on, in the year 2020.

The Citizens’ Budgets is a simpler, lesstechnical version of the Rivers StateGovernment’s budget specifically designedto present key information on Governmentprogrammes as contained in the 2020Appropriation Law. The Citizens’ budget istherefore presented in a manner thatenables the general public to understandGovernment’s programmes and activities forthe benefit of all citizens in the year 2020.

2020

CITIZENS

BUDGET

General Fiscal Framework

Total amount of

budget for the year

2020. It is the

summation of both

the Recurrent

Expenditure + Capital

Expenditure as

approved by the

Executive Governor.

The summation

of all funds the

State

Government

intends to collect

as revenues and

receive as

grants.

A deficit occurs

when the

expenditure

figure is higher

than the

revenue and

grants figure.

This is the summation

of all the financing the

government intends to

raise through loans,

sales of government

assets or other deficit

financing items.

The difference

between budget

deficit and total

budget

financing. As

indicated above

there is no

financing gap in

the approved

budget.

In 2020, Rivers State will spendN530.8 billion.

Of this, N460.8 billion will be sourcedfrom revenue and grants, which resultsin NGN70 billion in budget deficit.

The deficit will be resolved byN70 billion of total financing throughloans. This will make the 2020 budgetto have N0.0 billion financing gap.(Total Revenue Estimate is equal toTotal Expenditure Estimate)

530.8460.8

70.0 70.00.00

100

200

300

400

500

600

Total Budget Expenditure Total Budget Revenue and Grants

Budget Deficit Total Budget Financing Financing Gap

2020 Budget General FrameworkBillion Naira

What is Revenue?What constitutes Revenue of the

State?

Revenue is all the amount of money thegovernment believes it will collect during the yearfrom recurring taxes, levies and fees; put simply,this refers to money collected on behalf ofcitizens.

States in Nigeria receive a share of revenuescollected federally such as oil revenues, corporateincome taxes, VAT and excises and duties. Theseare called Statutory Allocation, VAT and otherStatutory Revenue in the budget and aretransferred to the states from the federationaccounts (FAAC).

Revenues that states directly collect and retain forits own use are called Internally GeneratedRevenue (IGR); IGR includes personal incometaxes, levies, rates, road taxes, property taxes etc.

26.7%

10.2%

4.1%

39.8%

0.0%

0.0% 6.0%

11.3%

1.9%0.0%

0.0%

2020 Budget Revenue and Financing

Internally Generated Revenue

Statutory Allocation

Value Added Tax

Other Statutory Revenue

Domestic Grants

Foreign Grants

Opening Balance

Domestic Loans

Foreign Loans

Sales of Government Assets

Other Deficit Financing Items

Where will the money come from?

Majority of revenue will come from FAAC allocation (N286.9 billion) and IGR (N141.8 billion).

Budget Financing of N70billion from both domestic and foreign credits is required to

adequately finance the 2020

budget.

0

50

100

150

200

250

Nai

ra

Bill

ion

s

2020 Budget Revenue and Financing

Where does the money go?

Government Expenditure has two maincategories: Recurrent and Capital Expenditure

RECURRENT EXPENDITURE: Refers to recurringpayments: wages and salaries for civil servants;overhead costs (routine expenditures required tocarry out government activities, electricity bills,purchase of diesel etc.); consolidated revenueaccount charges; transfers (for example, transfersto local government,); interest payments onexisting loans; and other subsidies.

CAPITAL EXPENDITURE: Capital Expenditure ismoney spent by Government to acquire or buildfixed capital assets, land or intangible assets.Capital Expenditure is how much is used forprojects like the building of schools, hospitals,roads, or buying security equipment, etc.

Expenditure is how the Government plans to spend

on behalf of the citizens, according to the resources

it manages.

0

50

100

150

200

250

300

350

400

Personnel Cost Overhead Cost Consolidated Revenue Charges

Transfers Interest Payments

Other Recurrent

Expenditure

Capital CostA

mo

un

t

Bill

ion

s

2020 Budgeted Expenditure

14.7%

3.5%

7.5%

0.0%2.8%

0.9%

70.5%

Expenditure type as % of total 2020 budget

Personnel Cost

Overhead Cost

Consolidated Revenue Charges

Transfers

Interest Payments

Other Recurrent Expenditure

Capital Cost

Where does the money go?

Allocations by MDAs

EXPENDITURE is allocated to different Ministries, Departments and Agencies (MDAs). Each MDA is allocated 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.

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

90.00B

illio

ns

2020 Budgeted Expenditure Allocation to Top MDAs

Capital

ExpenditureOverheads and other

RecurrentPersonnel

Cost

1515

1212

109

88

666

555

332222222222111111

0

2

4

6

8

10

12

14

16

18

Amount - Billions

Bill

ion

s

Top 2020 Capital Project Allocations

GLOSSARY

OF TERMS

I

IGR: Internally Generated Revenue

FAAC: Federal Accounts Allocation

Committee

VAT: Value Added Tax

CRF Charges: Consolidated Revenue

Fund Charges

MDA’S: Ministries, Departments and

Agencies

CONTACT

Rivers State Ministry of Budget and Economic Planning

Block B, Rivers State Secretariat Complex,

Port Harcourt, Nigeria

https://www.riversstate.gov.ng