#1UNITY AND FAITH, PEACE AND PROGRESS APPROVED ESTIMATES OF ABIA STATE GOVERNMENT OF NIGERIA 2020-2022 MULTI-YEAR BUDGET BUDGET OF ECONOMIC REPOSITIONING#2Abia State Government of Nigeria PART FOUR ABIA STATE CITIZENS BUDGET 2020 2020 Approved Estimates ............ Budget of Economic Repositioning. 351 .............#3UNITY AND FAITH, PEACE AND PROGRESS Abia State Government of Nigeria ABIA STATE 2020 CITIZENS BUDGET DOCUMENT "BUDGET OF ECONOMIC REPOSITIONING" 2020 Approved Estimates Budget of Economic Repositioning. 352 .............#4Abia State Government of Nigeria 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. 2020 Approved Estimates ............ Budget of Economic Repositioning .... ............. 2 353#5Abia State Government of Nigeria 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 Budget 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 by the general public, including being published online on an official state website. WHAT IS A CITIZENS BUDGET? 2020 Approved Estimates ............ Budget of Economic Repositioning. 354 .............#6Abia State Government of Nigeria WHERE DOES THE MONEY GO? 2020 Budgeted Expenditure Total Capital Expenditure 70,381,400,000 51% Personnel Cost 29,139,440,666 21% Overhead Cost 20,355,753,340 15% Consolidated Revenue Fund Charges 17,543,023,110 13% Personnel Cost Overhead Cost Consolidated Revenue Fund Charges ■Total Capital Expenditure EXPENDITURE IS HOW THE GOVERNMENT PLANS TO SPEND, ON BEHALF OF THE CITIZENS, ACCORDING TO THE RESOURCES IT MANAGES. GOVERNMENT EXPENDITURE HAS TWO MAIN CATEGORIES: RECURRENT AND CAPITAL EXPENDITURE. 2020 Approved Estimates ....... Budget of Economic Repositioning. ............. 355#7Abia State Government of Nigeria ALLOCATIONS BY MINISTRIES, DEPARTMENTS AND AGENCIES (MDAS) 1% 1% 1% 1% 2% 1% 3% 3% Top Sector/Ministry Allocation 16% 8% 1% 4% 1% Office of the Governor - Government House ■Office of the Deputy Governor-Government House Abia State Pensions Board Abia State Oil Producing Areas Dev. Comm.(ASOPADEC) Abia State House of Assembly Abia State Independent Electoral Commission Ministry of Home Land Security ■Ministry of Agriculture Office of the Accountant-General Expenditure is allocated to different Ministries, Departments and Agencies (MDAs). 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 ■Ministry of Trade and Investment 5% Ministry of Works 1% 1% 1% Abia State Planning Commission ■Ministry of Public Utilities and water Resources Abia State Water and Sewerage Corpoartion Ministry of Housing 8% ■Ministry of Lands, Survey and Urban Planning Ministry of Education projects associated with them. respectively. Abia State Polytectnic Aba 5% 2% 5% 3% 1% 2% 2% 8% 1% Abia State University Uturu Secondary Education Management Board (SEMB) Ministry Of Health Abia State Health Insurance Agency 12% Abia State Teaching Hospital, Aba Abia State Hospital Management Board Ministry of Environment Enyimba Football Club Abia Warriors Football Club Other MDA Expenditure 2020 Approved Estimates ............ Budget of Economic Repositioning. 356 .......#8Abia State Government of Nigeria 2020 Budget General Framework Billion Naira In 2020, Abia State intend to spend 137.419 billion. 160 Of this, 137.418 billion will be sourced from Statutory Allocation, Independent Revenue and Grants, which results in N0.6 Million in 140 120 100 80 budget deficit. 137.419 137.418 60 40 The deficit will be resolved by №15.730 billion of total 20 0.6 15.730 15.1 0.0 financing hence, No 0 Financing Gap Budget Expenditure Opening Balance of Total Budget Revenue and Grants Budget Deficit Total Budget Financing Opening Balance Financing Gap №15.108 billion will also aid financing. Total amount of budget for the given year. It is the summation of both the Recurrent Expenditure Capital Expenditure as approved by the Legislature. 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 summation of 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. This represents the Cash and Bank Balances from the preceding year The difference between budget deficit and total budget financing. In general, there should be no financing gap in the approved budget. 2020 Approved Estimates ............ Budget of Economic Repositioning. ............. 357#9Abia State Government of Nigeria TOP MDAS 2020 BUDGETED EXPENDITURE ALLOCATION Overhead and Other Total Recurrent Ministries, Departments and Agencies (MDAs) Personnel Cost Recurrent Exp. N N Expenditure N Capital Expenditure N Total Expenditure N Ministry of Works 149,361,920 10,600,000 159,961,920 16,500,000,000 16,659,961,920 Office of the Governor - Government House 688,066,770 8,383,000,000 9,071,066,770 2,600,000,000 11,671,066,770 Office of the Accountant-General 204,880,890 10,750,619,110| 10,955,500,000 90,000,000 11,045,500,000 Abia State Planning Commission 173,496,488 101,267,430 274,763,918 10,500,500,000 10,775,263,918 Abia State University, Uturu 3,816,458,680 1,900,000,000 5,716,458,680 1,700,000,000 7,416,458,680 Abia State House of Assembly (The Legislature) 768,638,170 4,509,000,000 5,277,638,170 2,060,000,000 7,337,638,170 Ministry of Education 779,427,530 43,500,000 822,927,530 6,000,000,000 6,822,927,530 Abia State Pensions Board 6,000,000,000 6,000,000 Ministry of Health 1,145,290,100 26,000,680 Secondary Education Management Board (SEMB) 3,932,329,120 109,400,000 6,006,000,000 1,171,290,780 4,041,729,120 2,500,000 6,008,500,000 3,000,000,000 61,000,000 4,171,290,780 4,102,729,120 Ministry of Housing 117,087,827 100,000,000 217,087,827 3,730,000,000 3,947,087,827 Abia State University Teaching Hospital - Aba 2,082,624,060 294,500,000 2,377,124,060 700,000,000 3,077,124,060 Abia State Polytechnic, Aba 1,734,011,140 375,400,000 2,109,411,140 950,000,000 3,059,411,140 Abia State Water and Sewerage Corporation 63,568,210 30,000,000 93,568,210 2,220,000,000 2,313,568,210 Ministry of Public Utilities and Water Resources 119,584,650 53,000,000 172,584,650 2,100,000,000 2,272,584,650 Abia State Hospitals Management Board 1,288,354,970 66,500,000 1,354,854,970 675,000,000 2,029,854,970 Abia State Oil Producing Areas Development Comm. (ASOPADEC) 174,999,990 80,000,000 254,999,990 1,600,000,000 1,854,999,990 Ministry of Lands, Survey and Urban Planning 197,000,000 30,000,000 227,000,000 1,615,000,000 1,842,000,000 Ministry of Environment 175,269,990 55,728,000 230,997,990 1,600,000,000 1,830,997,990 Judiciary - Customary Court of Appeal 1,349,592,920 60,600,000 1,410,192,920 145,000,000 1,555,192,920 Ministry of Trade and Investment Judiciary-High Court Ministry of Agriculture Eyimba Football Club Abia State Health Insurance Agency Total 249,409,350 8,000,000 257,409,350 1,200,600,000 1,458,009,350 1,036,540,459 120,000,000 1,156,540,459 160,000,000 1,316,540,459 443,382,020 700,000,000 10,050,000 453,432,020 730,000,000 1,183,432,020 27,389,375,254 338,000,000 8,950,000 27,470,115,220 1,038,000,000 8,950,000 54,859,490,474 1,038,000,000 1,000,000,000 60,939,600,000 1,008,950,000 115,799,090,474 Other MDAs' Expenditure 21,620,526,642 Total Budgeted Expenditure 2020 Approved Estimates ...... Budget of Economic Repositioning ............. 137,419,617,116 358#10refers to payments of wages and salaries for civil servants: Overhead Costs refers to payments of electricity bills, repairs, maintenance, purchase of diesel, office stationeries etc.); Billions (Naira) 22 12 10 8 00 16 14 Abia State Government of Nigeria TOP MDA 2020 BUDGETED EXPENDITURE ALLOCATION Recurrent Expenditure: This comprises of Personnel Cost, Overhead Cost and Consolidated Revenue Fund Charges. Personnel Cost 18 Capital Expenditure 6 Consolidated Revenue Fund Charges; transfers (to local 4 government, for example); 2 interest payments on 0 existing loans; and other (subsidies, for example). 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." ▬▬ יי Ministry of Works Office of the Governor - Government House Office of the Accountant- General Abia State Planning Commission Abia State University, Uturu Abia State House of Assembly (The Legislature) Ministry of Education Abia State Pensions Board Ministry of Health Secondary Education Management Board (SEMB) Ministry of Housing Abia State University Teaching Hospital - Aba Abia State Polytechnic, Aba Abia State Water and Sewerage Corporation Ministry of Public Utilities and Water Resources Abia State Hospitals Management Board Abia State Oil Producing Areas Development Comm. (ASOPADEC) Ministry of Lands, Survey and Urban Planning Ministry of Environment Judiciary - Customary Court of Appeal Ministry of Trade and Investment Judiciary - High Court 2020 Approved Estimates ............ Budget of Economic Repositioning. ........ Eyimba Football Club Abia State Health Insurance Agency Other MDAs' Expenditure Ministry of Agriculture 359 Overhead and Other Recurrent Exp. Personnel Cost#11Abia State Government of Nigeria 2,500,000,000. 2% TOP CAPITAL PROJECTS 2020 Top Budgeted Capital Projects vs Total Budget 2,482,000,000 2% 1,954,000,000 .1% 1,500,000,000 1% 1,200,000,000 1% 67,038,217,116 49% 60,745,400,000 44% Education for Employment Programme E for E Abia State Primary School Lunch Programme Statewide (Others) Counterpart funding These are the top 5 highest-value capital projects for 2020. Their total comprises 7% of the total budget for the year. Counterpart Funding for CGS ASUBEB Project Construction of Ndi-oji Abam-Atan- Eziafor - Ndi Okarie Road Other Capital Projects ■Total Recurrent Expenditure 2020 Approved Estimates ....... Budget of Economic Repositioning. 360 .............#12Abia State Government of Nigeria Programme Classification 2020 BUDGETED CAPITAL EXPENDITURE ALLOCATION BY PROGRAMMES shows the planned budgetary Capital Expenditure allocation to specific programmes (such as poverty reduction) that may be implemented by a variety of organizational units. It identifies and clarifies the goals and objectives of Power 2% government spending. Economic Societal Re-Orientation Poverty Sea Ports Oil and Gas Airways. 0% 0% Infrastructure Empowerment 0% Through Agriculture 1% Road 26% Reform of Government and Governance 27% Improvement to Human Health 10% 1% Enhancing Skills and knowledge 11% Allevation 1% Gender 0% Youth 0% Environmental Improvement Economic Empowerment Through Agriculture Societal Re-Orientation Poverty Allevation Improvement to Human Health Enhancing Skills and knowledge Housing and Urban Development Gender Youth Environmental Improvement Water Resources and Rural Development Information Communication and Technology Growing the Private Sector Reform of Government and Governance Power Road Airways Sea Ports Oil and Gas Infrastructure Housing and Urban Development 8% 5% Water Resources and Rural Development 4% Growing the Private Sector 3% Information Communication and Technology 0% 2020 Approved Estimates ............ Budget of Economic Repositioning. ............. 361#13Abia State Government of Nigeria Revenue is all the amount of money the government believes it will collect during the year from recurring WHERE WILL THE MONEY COME FROM? 2020 Budgeted Revenue and Financing taxes, levies and fees; put 2% simply, this refers to money 0% 9% collected on behalf of citizens. 7% 1% States in Nigeria receive a share of revenues collected federally such as oil revenues, corporate income taxes, VAT and excises and duties. These are called statutory allocation, VAT and other statutory revenue in the budget and are transferred to the states from the federation accounts. Revenues that states directly collect and retain for its own use are called internally generated revenue (IGR); IGR includes personal income taxes, road taxes, property taxes etc. 17% 24% 40% Statutory Allocation Independent Revenue Domestic Grants Foreign Grants Other Capital Receipts Internal Loans External Loans Opening Balance 2020 Approved Estimates ............ Budget of Economic Repositioning. ............. 362#14Abia State Government of Nigeria Majority of revenue will come from statutory allocation WHERE WILL THE MONEY COME FROM? 80,000,000,000 70,000,000,000 2020 Budget Revenue and Financing (67.2b, ), IGR (40.4 60,000,000,000 billion) and Grant 50,000,000,000 (Domestic and 40,000,000,000 Foreign) 29.3b. Financing can come from a mixture of domestic and foreign loans and Opening Balance. 30,000,000,000 20,000,000,000 10,000,000,000 Statutory Allocation Independent Domestic Revenue Foreign Grants Grants Other Capital Receipts Internal Loans External Loans Opening Balance 2020 Approved Estimates ............ Budget of Economic Repositioning. ............. 363#15Abia State Government of Nigeria BREAKDOWN OF FOREIGN GRANTS Water Development Alliance (WADA) III Project for Abia. State 100,000,000 11% Multilateral Aids / Grants From Development Partner UNFPA 2,200,000. 0% 3rd National Urban Water Reform Project (World Bank) 300,000,000 32% Multilateral Aids/ Grants From Development Partner WHO 3,000,000 0% Multilateral Aids/Grants From Development Partner TCI 60,000,000 7% Multilateral Aids / Grants From Development Partner UNFPA Multilateral Aids/Grants From Development Partner WHO Multilateral Aids/Grants From Development Partner TCI Basic Health Care Provision Fund 463,000,000 50% Basic Health Care Provision Fund ■3rd National Urban Water Reform Project (World Bank) I Water Development Alliance (WADA) III Project for Abia State 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 from 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. 2020 Approved Estimates ............ Budget of Economic Repositioning. ............. 364#16Billion (Naira) BREAKDOWN OF DOMESTIC GRANTS 12,000,000,000 10,000,000,000 8,000,000,000 6,000,000,000 4,000,000,000 2,000,000,000 Domestic Grants Abia State Government of Nigeria Domestic Grants general public. economy, and benefit the services, stimulate the projects to provide public funds for funding ideas and government's source of A grant is one of the expenditures. intended project and set of has been used for the need to be paid back after it borrowing/loans so do not expenditures. Grants are not specific project and set of normally provided for a foreign or domestic and is Grants could be either from 0 State Agency for the Cntrl of HIV & AIDS (SACA) World Bank World Bank/Nigeria For Women Project Federal Gov't Grant/Conditional Grant Scheme & FADAMAIII/IDA National Programme for Food Security (NPFS) ADP CBNRMP/NDDC/RUMED/IFAD Agric Trans Agenda/Agricultural Ext.Trans Agenda ATA/ETA 2020 Approved Estimates ............ Federal Government Grant for UBE UNICEF Grant & UBE Other Grants/Aids Tertiary Education Trust Fnd (TETFUND) SFTAS Grant 5% Premium Contribution from Formal Sector UNICEF Programme NEWMAP CBN - Abia Infrastructural Development Grants SDGs Grant From FG Grants from Development Partner Agency for Community & Social Development World Bank Prj IDA Worldbank Grants to Abia State Operation Coordinating Units( Budget of Economic Repositioning. ....... World Bank Grants to YESSO Water Development Project From World Bank Rural Access Mobility Project 365#17Abia State Government of Nigeria LOANS FINANCING: BREAKDOWN OF LOANS Project/Donor Loan from Commercial Banks Loan from The Infrastructural Bank(TIB) World Bank - Education for Employment and Skill Acquisition Belgium Gov't - Umuahia/Aba Regional Water Scheme Total Loans 2020 Budget Target Amount (Naira) Billion 2.00 The 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 domestic and or foreign sources. Loans can be for a Amount Naira 2,000,000,000 10,000,000,000 10.00 730,000,000 used to finance the general 3.000.000.000 3.00 budget expenditures. 15,730,000,000 15.73 specific project or set of 0.73 expenditures or could be 2020 Approved Estimates ............ Budget of Economic Repositioning. 366 .............#18CONTACT Abia State Government of Nigeria Executive Secretary Abia State Planning Commission, Office of the Governor - Umuahia Address: Website: Library Avenue Umuahia www.abiastate.gov.ng Tel: +234-806-678-3944 Email: [email protected] 2020 Approved Estimates ............ Budget of Economic Repositioning. 367 .............