ISTINGUISHED LADIES AND GENTLEMEN!

We shall remain grateful to God for bringing us together for year 2012 proposed Budget presentation. I appreciate your continued support and contribution to the success of this administration.

This Budget proposal is anchored on our desire to consolidate on the major achievements of our administration in previous years and to ensure that our

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success in transforming our State into an investors’ destination; a place of innovative governance and a land where opportunities will be achieved, is sustained.

Mr. Speaker and Honorable members, external environmental factors have direct and indirect effects on our economy. The year 2011 witnessed global economic and financial crises in Europe (e.g. Greece and Italy), North African Countries and the United States of America. The full impact of these on our economy have not completely unfolded.

The Boko-Haram insurgency has caused socio-economic upheavals and insecurity in some Northern States of our Country. The prevailing security challenges in those States have caused some of our people to come back home with the resultant pressure on the existing infrastructural facilities and job

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vacancies. These developments remind us of the need to be proactive and prudent in the management of our resources.

Mr. Speaker, Honourable members, the 2012 Budget proposal before you is carefully packaged to achieve a strong, diversified and competitive State economy that should provide hope for the hopeless, jobs for the unemployed and peace for sustainable development.

Against this backdrop of the economic environment and the challenges we face as a State, the 2012 budget proposal is envisioned to be a Budget of Transformation.

It is our resolve to transform Abia State into a prosperous State that would guarantee equal opportunities and high standard of living for our people.

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Review of the 2011 Budget:

The general performance of this administration in 2011 is commendable.

Our strive to increase the Internally Generated Revenue (IGR), yielded significant improvement. It was observed that the recurrent revenue as at the third quarter of 2011 was N36,640,588,599.88 (thirty six billion, six hundred and forty million, five hundred and eighty eight thousand, five hundred and ninety nine Naira, eighty eight kobo) only, representing 60 percent performance.

The total Capital Expenditure which represents government investments in infrastructure is remarkable. A good number of roads have been rehabilitated and many more are on-going.

There are other on-going projects such as the rehabilitation of water schemes, construction of new secretariat for Civil Servants in the State, construction

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of the International Conference Centre, and the construction of a new Government House, among others.

The monitoring and evaluation report for the third quarter indicated that the 2011 budget has been implemented above 60 percent. The modest accomplishments recorded have been due to a combination of foresight and prudence in resource management within this period.

Revenue Performance as at 3rd Quarter 2011:

As at the 3rd Quarter of 2011, a total sum of N5, 608,355,069.95 (Five Billion Six Hundred and Eight million, Three Hundred and Fifty-five Thousand and Sixty-nine naira Ninety-five kobo only was realized from our internal sources. This represents over 50 percent increase against that of last year.

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The revenue from the external sources was N31,032, 233, 589 (Thirty-one billion, thirty two million, two hundred and thirty-three thousand, five hundred and eighty nine Naira) only.

The breakdown is as follows:

Statutory allocation from
Federation Account -N22,735,564,528

Value Added Tax (VAT) -N 5,035,327,904

Derivation -N 3,261,341,157

= N31, 032,233,589

We shall put in place measures to ensure enhanced revenue generation in 2012.

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Expenditure Performance:

The recurrent and capital expenditures as at the 3rd quarter of 2011 was N30,001,605, 998.45 (Thirty billion, one million, six hundred and five thousand, nine hundred and ninety eight naira, forty five kobo)only.

Considerable increase is expected in the level of expenditure within the 4th quarter, due to a lot of rehabilitation and construction work going on in the State within this period. Furthermore, the implementation of the new minimum wage on the recurrent expenditure will also lead to a significant increase.

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The 2012 Budget:

The Philosophy and Thrust:

In 2012 fiscal year, we shall reinvigorate governance with renewed enthusiasm in the areas of internally generated revenue, especially in the execution of projects which have revenue yielding potentials. Integrated effort to be put in place towards the industrialization of the State and sustenance of the various economic empowerment programmes to reduce the level of poverty and unemployment, especially among the youths.

Our Framework shall include but not limited to:

i. Sustenance of peace and security in the State.
ii. Provision of enabling environment for investment.

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iii. Concerted efforts towards the transformation of the entire road networks in the State.
iv. Establishment of a new partnership with the private sector to create economic and educational opportunities.
v. Develop our human capital and empower our youth.
vi. Introduce modern technology in our Agricultural Sector.
vii. Enhance value reorientation in our public sector.
viii. Revitalise ailing government health institutions and improve health care delivery in the State.

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The 2012 Budget proposal is aimed at ensuring that the progress we have recorded, the sacrifices we have made and our commitment would transform the State to a modern, prosperous and secured place for all of us.

Naming of the Budget:-

Mr. Speaker, Honourable members, I present to this distinguished House of Assembly the 2012 Budget Christened “Budget of Transformation”. The 2012 Budget is painstakingly articulated to stimulate economic growth and development of the State.

The necessary policy guidelines to remove impediments and ensure efficient implementation of the budget would be put in place. Further details of this budget will be made public by the Honourable Commissioner for Finance.

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The 2012 Budget Outlay:-

The total budget outlay for 2012 fiscal year is N122,390,433,920 (One hundred and twenty-two billion, three hundred and ninety million, four-hundred and thirty-three thousand, nine hundred and twenty naira) only. This represent an increase of 16.4 percent over that of the preceding year which was N105,106,188,110 (One hundred and five billion, one hundred and six million, one hundred and eighty eight thousand, one hundred and ten naira) only.

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The Breakdown of the 2012 budget is as follows:

A. Revenue:

The revenue accruing to the State in 2012 is expected to increase. This is partly due to the anticipated favourable review of the revenue sharing formula of the Federal Government and partly due to the expected improvement in the collection of IGR and measures introduced by the reforms in the finances of the State.

(i) Internal Sources:

In 2012, concerted efforts would be made to improve on our Internally Generated Revenue. Meanwhile some consultants have been engaged to enable us restructure the systems of revenue collection.
For more go to:
http://www.abiastate.gov.ng/2011/12/the-2012-budget-speech-delivered-by-his-excellency-chief-t-a-orji-ochendo-the-governor-of-abia-state-at-the-abia-state-house-of-assembly-on-the-15th-day-of-december-2011/