PRESENTATION OF THE 2013 BUDGET ESTIMATE BY HIS EXCELLENCY, HON. HENRY SERIAKE DICKSON
PRESENTATION OF THE 2013 BUDGET ESTIMATE BY HIS EXCELLENCY, HON.
HENRY SERIAKE DICKSON, GOVERNOR OF BAYELSA STATE AT THE STATE HOUSE OF
ASSEMBLY ON MONDAY 24TH OF DECEMBER, 2012
I want to express my appreciation to the dutiful way this Assembly
has been performing the responsibilities assigned to it. I want to
convey to you the deepest appreciation of your State government and
indeed the good people of this State.
Mr. Speaker, considering the season, let me use this occasion to
formally, wish you and all the members of this House of Assembly Merry
Christmas and a happy and prosperous new year that awaits all of us in
Jesus name. Mr. Speaker, today I’m here with your permission to present
to you the 2013 Appropriation estimate from the Executive branch, which I
believe will receive your usual kind and expeditious attention. It is a
great honour and privilege for me to come into this hallow chambers
once again to present the 2013 budget estimation to you, the
representatives of our good and peace loving people.
Mr. Speaker, during the presentation of a revised 2012 appropriation
estimate to this assembly, I detailed the fundamental principles and
philosophies as well as the strategy for the smooth take off of our
restoration agenda. Our first budget was specially designed to ensure
that we laid a solid foundation for the programmes and aspiration of our
restoration government.
Mr. Speaker, after about 9 months of serious restructuring,
redesigning and re-organization of the entire government structure and
philosophy in the state, we are glad to report to you that the state is
now set for the full and aggressive implementation of all the programmes
and projects of the restoration government in all sectors of our life
beginning from 2013. It is for this reason that I feel confident to come
before you today with a budget of consolidation of Restoration. It is a
budget that has been carefully crafted to ensure thorough and speedy
implementation of the various programmes and policies we have advanced
to be implemented to some degree in the course of the out-going
year. Let me take you through some of the guiding principles underlying
our budget. The first is the issue of transparency and fiscal disciple.
Mr. Speaker and Honourable members of the House, in line with our
promise, government has been giving the good people of the State, month
by month transparency briefings, let me again, also thank you for the
expeditious passage of the law that created the legal framework for this
to be done. This has increased Public trust of donor agencies as well
as the interest and respect of development partners. This administration
is determined to foster transparency and openness in the conduct of
government business going forward. We will take all necessary measures
to forestall the possibilities of waste, inefficiency and corruption in
the transaction of government business in this state at all levels.
We will ensure that all payments are made in the year 2013 based on
value for money. All the measures developed to achieve cost reduction
particularly in the area of Personnel and Overhead costs will be
sustained next year. Budget discipline will be our watchword in the 2013
financial year and will ensure greater prudence and greater fiscal
discipline. The second issue, we are very much concerned about, is the
need to reduce the recurrent expenditure and therefore the running cost
of government.
Government has continued with the policies aimed at addressing the
huge wage bill of the state that we inherited that was built over
several years and we have come up with a policy by which, next year, we
are going to reduce it through the unconcluded biometric exercise that
was somehow started and suspended. This, we believe will give us some
positive results. We will work with our Permanent Secretaries, heads of
various departments and agencies to clean up our nominal roll. We have
also introduced daily attendance record to ensure that those who do not
work are not paid salaries. We will continue to work with consultants to
ensure that the processes of staff engagement, salary preparation,
salary payment, monitoring of staff attendance at their places of work
are computerized and this should be a basis for the preparation of
nominal roll for payment of salaries.
The staff biometric database will upgrade for migration to the human
resource platform to make all salary payments E-based. Right sizing the
public service will be pursued will vigour and efforts will be put in
motion to prevent payroll fraud by way of the bill that you have already
passed and which we have already assented to. We will continue to fish
out all those wrongly employed in the public service and ensure their
immediate disengagement at all levels both in the local governments and
all other agencies that are subject to fraud. We will also make
deliberate efforts in the reduction of overheads and recurrent
expenditure to channel our scarce financial resources for
infrastructural development and for deployment of other key sectors of
our economy.
We will not stop these processes until we have made significant
progress in ensuring that all ghost workers, persons who are experts in
inflating salary figures are cleared from our state wage bill. Such
people will be prosecuted in the provisions of the bill that this
Assembly has dutifully passed which we have since signed into law. The
other issue Mr. Speaker, that is of interest and will be pursued with
vigour next year is that of raising our IGR base. Our state is having
one of the lowest internally generated revenue profiles. To address
this, your government has put in place a number of policies to ensure
that our IGR comes up. An Internal Revenue Committee was set up which
identified a number of untapped sources of revenue and the loopholes in
the current system.
Government has set up a new board, which I’m going to inaugurate this
afternoon made up of men of experienced to handle our IGR progress. We
are also setting up a Tax IGR assessment and Review Committee to
coordinate all our IGR generating MDAs and activities. This, as a result
of our seriousness will be led by the Deputy Governor of the state. I
have directed the Attorney-General and one other officer to review and
come up with a proposed bill to streamline all IGR processes and capture
those potential sources that we have not taken advantage of. For the
civil servants and political appointees, we have set up machinery to
ensure that we all pay our correct taxes in accordance to the relevant
tax laws of this country, with particular reference to the Personal
Income Tax Act (PITA). In the same vein, we will ensure that all
multinational companies and all taxable adults and other entities doing
legitimate business in our state will be made to pay the correct taxes
as and when due to further boost the IGR base of our state.
Bayelsans will be rest assured that we will be very transparent in
the utilization of their tax money.to this end, I have directed that
specific bank accounts be opened for IGR generation and the amount
generated will be announced to you every month beginning from next
month. Let me also Mr. Speaker, with pleasure report to you that with
the steps we have taken so far, in the out-going year, our IGR has
gradually started to increase from less than 100 million naira, and I
can report to you that the last report I have, show an IGR monthly of
over 500 million naira.
On the performance of the out-going budget, the year 2012 was a year
of strategic planning and programming for our administration.
Consequently all the institutional and administrative structures needed
for effective service delivery with particular focus on good governance,
transparency and prudence have been successfully erected and clearly
identified. Therefore, the good people of Bayelsa State, I can rightly
express an aggressive, determined and a properly coordinated execution
of our restoration programme in year 2013.
You will recall that the initial appropriation for the 2012 fiscal
year was the sum of 238.157 billion naira. Due to the devastating
effects of the flood this year, government raised a supplementary budget
of 16 billion naira and this was passed, the sum of 1.5bn was
appropriated which government used to augment the various programmes
that are connected to alleviating the plight of flood victims. Of this
amount, 98.719bn or 38.715% was earmarked in the entire budget for
recurrent expenditure while the sum of 156.315bn or 61.29% was devoted
for capital expenditure. Mr. Speaker, permit me to use this opportunity
to thank the people of Bayelsa State for their support and resilience in
the trying period of the flood disaster which actually stalled our
developmental efforts which you know also brought a lot of hardship.
In terms of revenue, which accrues to the state during the out-going
year, actual receipts stand at 206.509bn or 80.98% of the budgeted sum
as at the end of November 2012.The breakdown is as follows: Statutory
Allocation was #25.283bn13% Derivation actually received #84.397
bnExcess crude and Budget augmentation #31.193 bnOther receipts were
#22.811 bnIGR came to just #4.752 bn Capital Receipts
#21.975 bn. So we have a total receipt of #206.509 bn, a short fall of
more than #30 bn.
The breakdown of our expenditure was #156.868 bn as at the end of
November for this year.The breakdown is as follows:Personnel cost
#31.599 bnOverhead cost #41.605 bn Consolidated Revenue Fund charge
#68.908 bnCapital expenditure #44.75 bnMaking a total
expenditure profile of #186.868 bn The 2013 budget proposals have been
carefully put together using the 2013-2015 Medium Term Expenditure
profile as its basic platform.
Consequently, the 2013 budget comes with a total proposal of #285.930
bn comprising of #133.235 bn or 46.60% for recurrent expenditure and
#152.695 bn or 53.40% for capital expenditure. The sum total of our
estimate is expected to be #38.028 bn. The projected revenue profile of
our state for the year 2013 consists of the following:1. Statutory
Allocation-------------------#27.268bn2. Excess Crude/Budget
augmentation------------------------#45.500bn3.
VAT-----------------------------------------#9.955bn4. 13%
Derivation------------------------#160.706bn5.
Internally Generated Revenue------#4.473bn6. Capital
Receipts------------------------#38.028bnTotal
--------------------------------------- #285.930bn On the other hand,
our expenditure profile for the year under consideration is as
follows:1. Personnel Cost: -----------------#49.142bn2.Overhead
Cost ------------------#28.905bn3.CRFC -----------------
#55.188bn4.Capital Expenditure
---------------- #152.695bn Total -----------------#285.930bn The
2013 Budget Estimates are for massive physical infrastructure,
revolutionary investment in agriculture, tourism hospitality, security
and education, which we have declared free.
Permit me now to outline the strategic policies and programmes of the
2013 Budget. Works and Infrastructure:Mr. Speaker, as I have said and
demonstrated severally in the course of the past nine months, the key to
unlocking the huge developmental potentials of the state remains in the
massive provision of investment in physical infrastructure. I’m aware
of the concerns of some well meaning citizens of this country whether
I’m not undertaking too much by way of the ambitious programmes, which
we have unfolded. My answer to you is that it is better for us to dream
big; it is better for us to stretch ourselves, resources and our
imagination to ensure that we catch up with the rest of the whole world
because we are completely
I intend not to fail, there is no project that we have abandoned;
there is no project that we inherited that we are not paying attention
to and we will ensure that, within the tenure of our government all
these programmes and policies would be funded. There is no project on
going that does not receive money. All projects that we have started,
including the several that were on going, there is none that are stalled
due to funding.
Accordingly, very high priority will be accorded to this critical
subsector of ourEconomy: I have always said that our wealth beyond oil
and gas, beyond investing in our human resources, lies in the ocean. We
must conquer our difficult terrain to ensure that the roads to the 3
senatorial districts are completed and that we get to the Atlantic Ocean
from the 3 main flanks. The Eastern flank through Nembe-Brass, the
Central flank through Yenagoa-Oporoma-Ukubie and the Western flank
through Sagbama-Ekeremor, because that is where our wealth really
lies. And until we achieve this we would not have created
infrastructural greatness as a state.
Accordingly, knowing that this ambitious programme of infrastructural
turn around will not be achieved within the narrow confines of
available government resources we are going to work to create an
enabling environment and also come to this hallow chambers request that
you consider working on the legal and Institutional framework to develop
a reliable and a responsible concession policy and legal framework. One
of the top priority project that will be the immediate beneficiary of
the concession policy include, Ekeremor Agge road, Nembe Brass road,
completion of the Tower Hotel and the completion of Melford Okilo
memorial Hospital.
These are gigantic projects and we have to be very creative to bring
the private sector, which has the funds and technical knowledge to work
with us to ensure that, they are brought to a respectable conclusion.
Most of these projects have been on for too long. Within the life span
of our budget, we will see the completion of most of these projects. I
am confident that, with the policies we have taken and within the first
quarter of next year, some sections of the hospital will be put to use.
Mr. Speaker, as you all are aware, there are some important jobs going
on in the state.
All we are doing is to see that, we create the infrastructure within
our state capital to make it a befitting one. Let me use this occasion
to salute once again, the resilience and understanding shown by
commuters and road users in Bayelsa state for the traffic congestion
that we have all been experiencing for some time. This should not take
anyone by surprise because we made a promise that the whole of Yenagoa
will be a massive construction yard. We all have to be patient because
we cannot prepare Omelet without breaking eggs.
This is a period of sacrifice, let us show the necessary restraint
and not complain over everything because good roads and good bridges do
not spring up over night. While we have a clear idea of the way forward,
so bear with us. I want to talk about the dualisation of Isaac Boro
road; road Safety road and several other dualisation of roads going-on
and inform you that they will be completed within the 2013 budget. Also
with the proposed Igbogene bye pass by which we want to link it with a
dual carriageway to the Bayelsa palm road.The Airstrip, to be located on
the Yenagoa – Amassoma – Egbedi axis is central to the state, and will
be about 25 minutes from the city centre.
Let me use this opportunity to thank the Federal Government for
partnering with us on this critical project. The term of the partnership
are these: The Federal Government through its agency, NDDC and the
ministry of aviation are to handle the sand filling as well as the
construction of the terminal and the navigational, and we decided to
undertake the most critical element of an airport which is the run-way.
The Federal Government through NDDC has since awarded the contract
for sand filling of the site. The Federal Executive Council has also
awarded contract for the construction of the terminal buildings. On our
part, as a state government, we are responsible for acquisition and
clearing of the land. Clearing of the site is going on and if not within
the life span of the next budget, very early in 2014, we will have an
airstrip or airport.
We are working with a world-class team and other specialists, and by
next year contract for the project will be awarded as funds for that has
already been set aside to begin the process of construction of the
airstrip. We have also started work on the additional secretariat
annexes and will be delivered within the next quarter of next year.
The Ecumenical project will also start in earnest in the course of
the 2013 budget year; and so the sum of #38.8 billion naira has been
earmarked for the works and infrastructure sub-sector. On education, we
have in the last nine months, even with the challenges of flooding, we
have begun the construction of 400 primary school buildings and 400
hundred teachers’ quarters spread across the state at over #9 billion
naira cost. This is an unprecedented investment in education
particularly at that level of education.
Mobilization for the said project has already begun and contactors
have gone to site in most of the projects and in 2013; we hope we will
be able to complete phase one. We hope to also start phase two to take
another set of communities because having a good quality learning
environment is the basic right of every Bayelsan child. In pursuance of
our policy in secondary education, we have begun the building of model
schools in every local government area with boarding facilities to
accommodate 1000 students. Contract has been awarded and mobilization
fee paid. In 2013, Government intends to conclude construction work on
at least 28 constituency model secondary schools with boarding
facilities at the cost of #200 million.
Let me Mr. Speaker and Honourable members convey the gratitude of
government for your willingness to work with us in addressing this issue
of educational deficiency. In the course of our interactions, you saw
the need to channel your constituency projects for the year 2012 and
next year, making a total of #200 million each member for the
construction of these secondary schools in your respective
constituencies. We have started the process of making awards and before
the end of this year, award letters will be out. On technical education,
we intend to make quality investment in this area of school educational
system. Within the next budget year, government will fund the technical
schools at Aleibiri; in addition, schools will be established for
gifted and talented children; these when completed, will be equipped
with boarding facilities. The training and retraining of teachers will
be accorded high priority next year.
We have established a teacher’s training Institute as a department of
the Isaac Boro college of education. Contract has been awarded for the
administrative and classroom blocks for the training of teachers. We
will commence the immediate review of our school curriculum aside
science and technical education. In our effort to address the manpower
deficiency, government has taken major steps to relocate the college of
education with a student enrolment of close to 5000. Government has
re-established the Bayelsa State College of Arts and Science to produce
not only middle level manpower, but also to provide a second chance to
remedy their education deficiencies.
The schools have kicked off and attendance is very encouraging.In
2013, government is proposing to establish two new schools to identify
manpower deficiencies, which are the school of tourism and catering to
train middle level manpower for the hospitality industry which
government has made substantial investment. We anticipate a boom in
tourism in this state soon. The first Bayelsa carnival will come up next
year. The second school is that of Agriculture. This will be set up to
train middle level manpower because we are serious about broadening the
base of our economy to achieve maximum results. Both schools are
expected to take off before the end of the first quarter.
On the state-owned Niger Delta University, we are not satisfied with
the report of the visitation panel in spite of the capital investment
made in that school so far. Accordingly, I have inaugurated governing
council with a charge to turn it around and make it financially
autonomous. Beyond subventions, government will encourage that
University to be able to serve as a foremost Institute of
learning. Furthermore, scholarship programmes will be strengthened and
to also work hard with stakeholders to ensure that we begin to pay
bursaries and other grants to students of Bayelsa state origin in our
various schools of higher learning.
Mr. Speaker, the scholarship programme for post-primary school pupils
of Bayelsa state origin and those in postgraduate studies are doing
well. Government will also next year begin to provide free teaching
aids, free books and desk and then by January, we will begin the
distribution of school uniforms to all the schools. All these are ready,
but if not for the floods, we would have gone far. Accordingly, the sum
of #28.4 billion naira has been proposed for the Education subsector
next year.
Mr. Speaker, as you are quite aware, the health subsector forms an
important component of our Restoration Agenda. This informed the
development of the policy of providing every local government head
quarters with functional hospitals. The execution of that laudable
policy has reached an advanced stage. Also the 500-bed Melford Okilo
memorial hospital will benefit from our concessioning policy so that we
can immediately put the hospital into use. We will continue to sustain
the present regime of quality investments in the college of Health
Technology and the Niger Delta University Teaching Hospital as well as
the School of Nursing to ensure the accreditation of more of their
programmes.I am quite sure that by the time our investments in the
Health subsector matures, Health care delivery would have been greatly
enhanced in the state. We have reinvigorated the fight against the HIV
and Aids scourge in the state with the establishment of the HIV and Aids
Agency in the state.
Accordingly, the sum of #7.7bn is hereby proposed for the Health
Sector. Energy:Mr. Speaker, after series of consultations in the energy
subsector, we have come to the regrettable and painful conclusion that
the challenges in this very important subsector have become more
daunting due to the none availability of a properly articulated Energy
road map in the state. Therefore, the task we have given ourselves for
the 2013 fiscal year in the production of a power master plan for the
entire state. I am quite sure that this will provide a good guide for
our investment decisions in the Energy subsector.
Accordingly, the sum of #6.2bn is earmarked for the Energy
subsector. Agriculture:It is true that agriculture provides a reliable
basis for employment generation both in the short and long terms. Yet,
the Agriculture subsector with its enormous potentials has for many
years suffered serious neglect. Mr. Speaker, we intend to reverse this
unacceptable situation in 2013. To this end, a school of Agriculture
will be established next year to ensure that our teeming farmers are
exposed to new technologies designed to enable them improve on their
productivity. Government will as a deliberate policy of boosting food
production, establish large farms at Ebedebiri, Angalabiri, Abobiri and
Isampou. Also, government will embark on the extension services and
ensure better and easier delivery of credit and other valuable inputs to
farmers next year. The sum of #2.7bn is therefore being proposed for
Agriculture in the year 2013.
Trade and Investment Industry:The need to properly harness our
potentials and advertise same to prospective investors necessitated the
creation of this ministry. We intend to carry out an aggressive
‘foreign’ Direct Investment drive next year as, part of our
multi-sectional approach to the creation of employment opportunities for
our teeming youths. Also, we have established the Bayelsa Development
and Investment Corporation [BDIC] as a special purpose vehicle to drive
the process. Furthermore, the issue of building entrepreneurial capacity
will be given a major boost next year.
The sum of #2bn is hereby proposed for this sub-sector. Water
Resources:The provision of portable and clean drinking water will
continue to be accorded priority attention by this administration in
2013. Modern water treatment plants will be established in various
locations in the state, while works on the various ongoing water
projects will be completed in 2013. The sum of #3.4bn is being proposed
for Water Resources.
SCIENCE TECHNOLOGY AND MANPOWER DEVELOPMENT:
Mr. Speaker, Science and Technology being the cornerstone of
industrialization given will be given special recognition. This has been
amply demonstrated with the creation of a special Ministry for it. The
continuation of a state policy on information and computer technology
shall be completed and this will be followed immediately with the
construction of a science and technology centre of excellence and
innovation as well as renovation/furnishing of 8 ICT centres in the
LGAs. The sum of #3.5 bn has been proposed for science, Technology and
manpower development.
SPORTS DEVELOPMENT
Mr. Speaker, the potentials of the state in Sports are huge and this
administration is determined to harness them properly to ensure greater
unity and create the much needed employment opportunities for our
teeming youths in the state. Construction work on the Bayelsa State
stadium complex will start in earnest. Also, all outstanding works at
the Samson Siasia Sports Complex will be completed next year. We will
ensure that our Sports Academy at Asuama commences full-scale activities
next year.
The funding of our football and other sporting outfits will also be
sustained next year as they have done so much to boost our collective
image as a people. The sum of #4.5 bn is allocated to the sports
development sub sector. Housing and Urban DevelopmentIt is true that the
housing deficit in the state is huge. Government will take pragmatic
steps to address this problem next year.
In this regard, the construction of low cost houses for our teeming
masses will be accorded high priority. Also low cost housing schemes in
the 8 LGA Head quarters will get underway in 2013. Additionally, the
Housing and Property Development Authority will be encouraged to fulfill
its mandate of providing affordable housing to the people of Bayelsa
State. The sum of #3.2bn is being proposed to the housing
sub-sector. Budget Discipline
Mr. Speaker, let me say unequivocally that the management of public
expenditure in the state will strictly adhere to measures of efficacy,
efficiency and effectiveness.This administration is determined to foster
transparency and openness in the governance of the state. We will take
all necessary measures to forestall the possibilities of waste,
inefficiency and corruption in the transaction of government business in
the state.
We will ensure that all payments to be made in the year 2013 are
based on value for money. All the measures developed to achieve cost
reduction; particularly in the area of personnel cost and overhead will
be sustained next year. Budget discipline will be our watchword in the
2013 financial year, as we will ensure greater prudence and fiscal
discipline in the handling of government transactions.
We will also make deliberate efforts in the reduction of overhead and
recurrent expenditure to channel our scarce resources for
infrastructural development and to other key sectors of the
economy. ConclusionOur government stands fully committed to ensuring
that the fruits of the Restoration Agenda are shared by all sectors of
our society, especially those living in the rural areas.
Therefore we must remain united, resolutely focused and unshakably
committed to restoring the lost glory of our dear Bayelsa State.
As a united force against poverty, indolence and corruption, we will
start our journey slowly but we will certainly arrive at the Bayelsa
State of our dreams and aspirations.
Mr. Speaker, I have the honour to now present to you for the
consideration and subsequently expeditious passage, the Draft Estimate
for 2013 comprising; 1. Total Revenue N285.930
billion2. Total Recurrent Expenditure N133.235
billion3. Total Capital Expenditure N152.695 billion
God Bless Bayelsa State
I thank you
