Decline in the Federation Account accounted for a 9.8 per cent decrease in the projected recurrent revenue of the Enugu State Government in 2014.
The Commissioner for Finance and Economic Development, Mr. Godson Nnadi, disclosed this while giving a breakdown of the state’s 2014 budget.
The state government budgeted a total sum of N93.2bn for the 2014 fiscal year, an 11 per cent increase from the N83.7bn budgeted for 2013.
However, while the total budgeted sum increased, the state’s projected recurrent revenue fell from N63.7bn in 2013 to N57.4bn in 2014.
Nnadi said the N6.2bn (9.8 per cent) shortfall “can be explained by the dwindling resources from the Federation Account.”
Figures made available to journalists showed that N48.3bn, or 84.0 per cent, of the projected N57.4bn recurrent revenue will come from the state’s share from the federation accounts, while only N9.1bn, or 16.0 per cent, will come from internally generated revenue.
Out of the total budgeted sum of N93.2bn for 2014, Enugu State Government set aside the sum of N39.3bn for recurrent expenditure.
The amount budgeted for recurrent expenditure in 2014 represented a N6.5bn decrease in the sum budgeted for the same item in 2013.
Nnadi further explained that the need to release more money for capital projects informed the reduction in recurrent expenditure through “the prudent management of the lean financial resources of the state.”
The sum of N53.9bn was budgeted for capital expenditure by the Enugu State Government in 2014, of which capital receipt is expected from sources including transfer from recurrent surplus (N18.1bn), value added tax (N9bn), internal/local loans (N5bn), external loans (draw down) (N11.4bn), grants (N7.7bn), and public private partnership (N1.1bn).
The N53.9bn capital receipts also included the sum of N600m which was left at the end of 2013 and carried forward to form the opening balance of the 2014 fiscal year.
A summary of the budget based on thematic areas showed that infrastructure and transport received the largest share of the capital expenditure with N17.8bn, while education, community and rural development, and health followed with N5.7bn, N5.05bn and N4.1bn, respectively.
Responding to questions after the presentation, the commissioner, who was reacting to concerns over the non-allocation of funds to Daily Star, the state-owned newspaper, urged journalists to buy the outfit.
Noting that the state government has decided to privatize Daily Star, he said, “We expect that NUJ veterans will come up with a consortium to take over Daily Star.”