Kaduna Targets N112b Revenue in 3years

By Uangbaoje Alex, Kaduna

Kaduna State Government is expected to generate over One Hundred and Twelve Billion Naira (N112b) in the next three years according to state official.

This was disclosed on Tuesday during the presentation of the state Medium Term Expenditure Framework (MTEF), to Civil Society Organizations and the Media by the state Planning and Budget Commission.

According to a presentation made by the Director Budget of the Commission, Idris Suleman, a the state hope to generate a total of N112,042,723,771.00 by 2023, 2024 and 2025 from both Statutory Allocation (SA), Value Added Tax (VAT) and Internally Generated Revenue (IGR).

He said the total revenue projection for 2022 is over N97b (97,576,096,856.00), with over N41b from IGR, N13b from VAT and N42b from Statutory Allocation.

For 2023, he said the projection is N61b, N15b and N45b for IGR, VAT as well as SA. N36b, N17b, N60b for both IGR, VAT and SA, while N40b N19b N52b is expected to be generated from the three revenue sources respectively in 2025.

MTEF is an annual, three-year expenditure planning that sets out the medium term priorities and hard budget constraints against which sector plans can be developed. The document indicates fiscal targets, fiscal risks, estimates of revenues and expenditures including government financial obligations.

Idris, explained that the purpose of the MTEF is three-fold, which includes; “to provide a backwards looking summary of key economic and fiscal trends that will affect the Public expenditure in the future, i.e. Economic and Fiscal Update.

“To set out medium term fiscal objectives and targets, including tax policy; revenue mobilisation; level of Public expenditure; deficit financing and Public debt, i.e. Fiscal Strategy Paper and Medium Term Fiscal Framework (MTFF) and to provide indicative sector envelopes for the period under review which constitutes the Medium-Term Budget Framework (MTBF).”

According to him, “Statutory Allocation’s forecast is based on elasticity of non-mineral revenue (Custom and Excise Duty & Company Income Tax) using historical data from 2013 to 2020 and forecast for the period of 2022 – 2024 using GDP growth rate and inflation.

“Mineral revenues are based on the benchmarks and the current proportion of crude oil sales proceeds that are converted into fiscal resources. The budgeted figures for Statutory Allocation do not include any excess crude or other Federation Account receipts. It has taken into cognisance the 0.005% deduction of Police Trust Fund from both the Mineral and Non-Mineral Revenue.

“The estimate for VAT is based on elasticity using 2013-2020 actuals and 2022-2024 real GDP growth and inflation . Historical elasticities are calculated for the period 2013-2020. The 2020 Finance Bill increasing VAT from 5% to 7.5% and an additional 3% deduction from VAT for Northeast Development Company is recognised.

“There are no provisions for revenue from excess crude because Excess Crude is a kind of stabilization fund that is distributed at discretion to the Federal Government and States or when the economy needs to be supported to cushion the effect of recession or economic down-turn. This makes it not reasonable to budget or forecast excess crude.

“The actual IGR collections for 2020 was used to project for 2022 to 2024. The State’s IGR has grown by more than 200% since 2015. The State recorded an increase of 11.5% in its 2020 IGR as compared with 2019 actual collections. This came even with the Covid-19 imposed lockdowns in the State. The State has continually outperformed its budget figures of IGR in recent years. This is mainly due to the political will of the government to increase IGR over time and be independent of Statutory Allocation in the long run.”

Earlier, the Permanent Secretary in the Commission, Bashir Muhammed, commended the CSOs, Media and donor partners for always engaging with the Commission, which he said has made the entire budget process better.

On his part, State Team Lead, Partner to Engage, Reform and Learn (PERL), Abel Adejor, called on citizens not to get tired of engaging with the budget process, adding that every stakeholders have a role to play in making the state a better place.

Newsweb

At Newsweb Express we don't only break the news, we are committed to investigative and developmental journalism

You may also like...

Leave a Reply

%d bloggers like this: