FG, 19 states to spend N14.5 trillion in 2018

The central and 19 state governments are planning to spend N14.5 trillion next year, NationReformer.com investigations have shown.

The federal government is proposing to spend N8.6 trillion in 2018, while the 19 states that have so far presented their budgets, are planning to spend N5.8 trillion.

Analysis of official documents shows that this figure is slightly higher than what the federal and 33 state governments are spending in 2017.

In 2017, the federal and 33 state governments budgeted N13.5 trillion, about N1.5 billion lower than what the 19 states and the federal governments are planning to spend next year.

The 2018 estimates are also higher than the N12.2 trillion combined budgets of the two tiers of governments in 2016.

Only 19 states have so far presented their annual expenditure to their various legislatures for approval, less than two weeks to the end of the year.

In the northwest, only Kano, Katsina, Kaduna, Jigawa, and Zamfara states have presented their budgets. Kebbi and Sokoto states are yet to present theirs.

In the northeast, only Adamawa and Yobe presented their budgets so far, leaving behind Gombe, Bauchi, Borno, and Taraba states.

Kwara, Nasarawa, Benue and Niger states are the only states that have presented their annual estimates in the north central. Kogi, and Plateau have not done it yet.

In the southwest, only Lagos, Ekiti and Ogun have taken their estimates to their state assemblies for consent.

Southeastern states of Imo, Ebonyi, Abia, and Enugu have not yet presented their budgets. Only Anambra state did.

In the south-south, only Cross River, Edo, Delta, and Akwa Ibom submitted their budgets so far. Bayelsa and Rivers have not yet submitted.

Salaries, overheads gulp N8 trillion

Analysis of the 2018 estimates shows that of the N14.5 trillion combined budgets, the two tiers of government are planning to spend N8.12 trillion on recurrent expenditure that comprises workers’ salaries, overheads, statutory transfers and debt servicing. The remaining N6.33 trillion will be spent on capital projects.

The federal government has a proposed budget of N8.6 trillion for 2018, of which N2.65 trillion was earmarked for capital projects, and the remaining N5.96 trillion for personnel salaries, overheads, statutory transfers and debt servicing.

The 19 states have proposed a total budget of N5.84 trillion for next year. Of this figure, N3.68 trillion was earmarked for capital projects, while the remaining N2.16 trillion was billed for salaries, overheads, and statutory transfers.

In 2017, the central and 33 state governments spent N5.9 trillion (41 percent) of their total budgets on salaries.

The central government’s budget for last year was N7.29 trillion; of which the recurrent expenditure gulped N2.98 trillion. Other components of the federal government budget are statutory transfers (N414 billion) and debt servicing (N1.66 trillion).

The 33 states had a combined budget of N6.1 trillion in 2016, and they expended N2.60 trillion (42 percent) on workers emoluments.

The swollen recurrent expenditures keep coming despite the economic recession triggered by the dwindling oil revenues and low votes for development projects.

In 2017, the capital spending by the central and the state governments was N5.77 trillion (43 percent) – N2.24 trillion for the federal and N3.53 trillion for the states.

The total recurrent expenditures of the federal and state governments also rose by over N200 billion, from N5.3 trillion in 2016 to N5.5 trillion in 2017.

Also, capital projects by the two tiers soared by over half a trillion naira. It rose from N5.04 trillion in 2016 to N5.77 trillion in 2017.

Low-budgeted states

The states with small budgets are Yobe (N92 billion), whose budget rose from N69 billion in 2017. Others are Ekiti (N98.6) billion. The state budgeted N94 billion in 2017.

Nasarawa budgeted N122.8 billion for 2018, which is almost double of the N67 billion, it spent in 2017. Niger’s proposed budget is N128 billion, about N20 billion higher than its 2017 budget of N108 billion.

Other states with relatively low estimates are Zamfara (N130.7 billion), Jigawa (N134.2 billion), Edo (N146.6 billion) Adamawa (N162.7 billion), Anambra (N166.9 billion), Benue (N178.4 billion), Kwara (N182 billion).

High budgeted states

Cross Rivers state is leading states with higher estimates. It’s planning to spend N1.3 trillion next year. Its budgeted skyrocketed from modest N301 billion in 2017 and N305 billion in 2016, to a trillion figures, making it the first state to hit the 12-figure benchmark.

Lagos which spent N813 billion in 2017, and N662 billion in 2016, is now planning to spend N1.04 trillion next year.

Other states with huge budgetary allocations are Akwa Ibom, which budget rose from N424 billion in 2016 and N365 billion in 2017 to N651 billion in 2018. Delta is proposing to spend N298 billion next year, having spent N271 billion in 2017 and N268 billion in 2016.

Ogun spent N221 billion in 2017, and it’s proposing to spend N345 billion next year. Kano is planning to spend N234 billion next year, having spent N210 billion in 2017 and N274 billion in 2016.

Kaduna’s 2018 approved budget is N216.5 billion. It spent N215 billion in 2017. Katsina state is proposing N211 billion in 2018.