Akwa Ibom State Appropriation Bill, 2021 passed second reading.

Williams Akpabio - AKHA(Aide), Uyo 

Akwa Ibom State House of Assembly in it's plenary today read A Bill for a Law to Appropriate Monies from the Consolidated Revenue Fund, Revenue Fund and Capital Development Fund in the service of Akwa Ibom State Government the second time. The Speaker Rt. Hon. Aniekan Bassey referred the Bill to House committee on Finance and Appropriation for further legislative actions and  report to the house in one month.

It could be recalled that Gov. Udom Emmanuel on October 20th, 2020 presented Akwa Ibom State Appropriation Bill, 2021 to the State legislature. the draft estimate, with the budget size of N435.652billion christened “Budget of Economic Reconstruction.” aimed to continue the actualization process for the Completion Agenda of this Administration, which is hinged basically on achieving rapid industrialization of this State. 

 The 2021 Budget is predicated on an oil benchmark of $40 per barrel at a production rate of 1.86 million barrels per day, with an estimated exchange rate of N379/US$, in line with the National Budget benchmark projections.

The highlight of the budget is as follows: Recurrent Expenditure: N158.403 billion

Capital Expenditure: N226.964 billion

Consolidated Revenue Fund Charge: N50.285 billion

TOTAL: N435.652 billion

According to Gov. Emmanuel, the policy thrust of the 2021 Budget will focus on the key pillars of the Completion Agenda. The objective is to ensure that his administration rapidly industrialize this State and open up new areas of growth and development through intense and coordinated efforts to increase our internally generated revenues and  be less dependent on Allocations from the Federal Government, which was the main thrust of recommendations by the Post-Covid -19 Economic Reconstruction Committee.

He said that Education, as a key component of the Human Capital Development of our Competition Agenda will be given a pride of place; intensify investments in healthcare delivery and remain proactive in ensuring that his administration reduces the incidence of communicable diseases by completing among other key elements, the construction and commissioning of the General Hospitals in Ikot Abasi and Ikot Ekpene respectively.

The Governor also disclosed that the Bill will boast Air and marine infrastructures "Ibom Air today is the pride of the nation and we are working hard to ensure that we realize the Ibom Deep Seaport project in the life of this Administration".

Similarly, youths and women would be empowered through various agencies of development established to ameliorate their pains.

The total projected Recurrent Revenue for 2021 is estimated at N255.003 billion as against the approved revised provision of N203.556 billion for 2020. The breakdown is as follows:

Internally Generated Revenue (IGR): N36.295billion

Statutory Allocation: N36.000billion

Derivation Fund: N140.000 billion Excess Crude, Exchange Gain,

Augmentation and Others: N25.000 billion

Retained Revenue from Parastatals: N 1.708billion

Value Added Tax (VAT): N16.000 billion

TOTAL: N255.003 billion

For the 2021 Fiscal Year, Recurrent Expenditure, is proposed at N208.688 billion, which is made up of:

Personnel Costs: N56.542billion

Overhead Costs (Including Social Benefits - Pension and Gratuity): N101.861billion Consolidated Revenue Fund Charges: N 50.285 billion

TOTAL: N 208.688billion

The total Capital Receipts and Expenditure for the year 2021 is estimated at N226.964billion, a total projected capital receipts shows that N46.315 billion will be transferred from the consolidated revenue fund, while the balance of N 180.649 billion is to be realized as follows:

Opening Balance from 2020 account: N 27.000billion

 Internal Bank Loan: N40.044billion

Grants: N 34.000 billion

Ecological Fund: N 2.000 billion

Re-imbursement from Federal Government on Road and other Infrastructure: N 15.000 billion

Investment Income: N 0.500 billion

Other exceptional Income: N 61.105 billion

Stabilization Account: N1.000 billion

The sectoral allocation shows that the total budget outlay of N435.652 billion for the year 2021 as follows:

1. Administration: N100.018 billion (23.0%)

2. Economic: N267.557 billion (61.4%)

3. Law and Justice N9.419billion (2.1%)

4. Regional: N1.235billion (0.3%)

5. Social: N57.423billion (13.2%)

TOTAL: N435.652 billion (100.0%)

Analysis of sectoral allocations above show  that priority is given to projects and programmes under the Economic Sector such as: education, healthcare, aviation development, infrastructure, industrialization, small and medium scale enterprises, human capacity development, power and of course, rural and riverine development - all the pillars of the Completion Agenda of this administration.