Amaechi proposes N490b budget

Governor Chibuike Amaechi of Nigeria’s oil rich Rivers State has proposed an aggregate budget of N490.3 billion for 2013. The proposed budget is N52.32 billion or 11.95 per cent higher than last year’s N438 billion .

The Governor said the proposed figure was reached after a careful consideration of project submissions, options and factors that are needed to achieve developmental targets in view of the challenges facing us as a State.

Amaechi said the spending will be funded by: Statutory Allocation (FAAC) of N245 billion; IGR including Social Levy of N80 billion; Prior year balance of N48.32 billion; Bond proceeds of N100 billion & World Bank/African Development Bank (AfDB) Credit of N17 billion.

Capital expenditure is estimated at N314.30 billion as agains N323.70 billion in 2012. Proposed recurrent spending is N176.02 billion as against N114.25 billion in 2012. Capital Expenditure projection for 2013 is 64.10 per cent of the total budget while Recurrent Expenditure is 35.90 per cent.

“We had made provisions under the Recurrent Expenditure window for new recruitments including the hiring of additional 13,000 teachers to strengthen our education sub sector. Adequate provisions were equally made for the Monthly Pension/Contributory Pension Scheme, bond issuance related costs and loan repayment in 2013. These provisions totalling in all N92.19 billion is responsible for the obvious increase in the proposed Recurrent Expenditure for 2013.”

Governor Amaechi hinted that the state will approach the capital market in the first quarter of 2013 for the state’e first Bond issuance for N100 billion.

“The Bond proceeds would be applied only on specific projects as outlined in the Bond documents,which will include:The Greater Port- Harcourt M-10 Highway -a 10km road consisting of five bridges linking the New City from the International Airport to Onne Seaport.”