Governor of Enugu State, Dr Peter Mbah has presented a N521.5 billion (N521,561,386,000) budget for the 2024 fiscal year before the Enugu State House of Assembly.
The budget proposal, which he entitled “Budget of Disruptive Economic Growth” is the highest in the state’s history, comprising N414.3 billion capital expenditure and N107.2 billion recurrent expenditure.
Presenting the budget on Tuesday, Governor Mbah said: “The 2024-2026 Multi-Year Budget is named Budget of Disruptive Economic Growth. This is on account of the fact that it is structured to drive growth in a markedly different pattern than we have attempted to do hitherto.
“We are proposing a total budget of size of ₦521,561,386,000.00 for the 2024 fiscal year as against the approved revised provision of ₦224,697,899,063.00 for 2023. This is a 132% increase above the revised budget for 2023.
Regarding income, we project that total recurrent revenue in 2024 will be ₦383,789,000,000.00, compared to the ₦143,571,592,917 authorized amended provision for 2023.
The governor provided a breakdown of the government’s anticipated revenue sources, stating that although the state had an opening balance of N11 billion, it anticipates earning N252.7 billion from value-added tax (VAT), N60 billion from statutory revenue, N16 billion from excess crude oil revenues, and other sources.
Mbah provided an explanation of the Recurrent Expenditure and Capital Expenditure for the 2024 Fiscal Year. The Recurrent Expenditure, which is suggested at ₦107,227,266,000.00, is composed of N41,804,698.000 Overhead Costs, N17,838.891,000 Consolidated Revenue Charges, and N47,583,677,000 Personnel Costs.
The Capital Development Fund receives ₦276,561,734,000.00 as Net recurring Revenue after deducting the entire recurring expense of ₦107,227,266,000.00.
“The estimated total capital expenditure for 2024 is ₦414,334,120,000.00, compared to ₦135,715,099,693.00 for the revised budget for 2023.
The Consolidated Revenue Fund will be used to transfer ₦276,561,734,000.00 in order to fund the current capital expenditure estimate. The remaining ₦137,772,386,000.00 will be realized through the following channels: N6,100,000,000 from Public Private Partnership; N27.922,386,000 from External and Internal Aids and Grants; N71,000,000,000 from Domestic Loans/Borrowings; and N32,750.000.000 from International Loans/Borrowing Receipts.
Based on the distribution of capital expenditures by sector, the economic sector received the largest amount—N207.8 billion—while the social sector received N182.9 billion.
Nonetheless, the largest share of the budget—33 percent of the overall budget and 73.6 percent of the social sector allocation—went to education.
“As I have stated, a fundamental component of our approach to end poverty in our State is education. The new smart schools I mentioned earlier, as well as repositioning our senior secondary and tertiary institutions by training and retraining teachers and updating our curricula across all levels of education to infuse technology and technology appreciation and skills, have been funded with ₦134,587,982,647.78, representing 73.6% of the social sector, in order to help reinvent education in our state.
The governor declared, “Our total spending on education will reach 33% of the total budget with this capital expenditure and the planned recurrent expenditure in the sector.”
Other major allocations go to: agriculture, which received N25.1 billion to pursue the goal of self-sufficiency and economic diversification; water, which received N28.9 billion to ensure safe and quality water supply in the state and boost reticulation across the Enugu metropolis; health, which received N21.7 billion as the administration ramps up construction of 260 Type-2 Primary Healthcare Centers across the 260 electoral wards; and infrastructural development and maintenance, particularly roads and public buildings, which received N82.5 billion to, in the words of the governor, “smoothen connectivity, bolster trade, and enhance overall accessibility and attract investments that create jobs.” Security and the development of jobs are two other top priorities.
On addition to thanking House of Assembly members for their bipartisan support, Mbah asked all parties involved to work together “in this journey towards a better future for all residents.”
In response, Speaker Rt. Hon. Uchenna Ugwu promised to work diligently and quickly on the 2024 budget estimates while praising the governor for the outstanding achievements he had accomplished in just six months, including the return of water to Enugu City.
