BUDGET SPEECH BY HIS EXCELLENCY, RT. HON. (DR) SIMON BAKO LALONG, KSGG, EXECUTIVE GOVERNOR OF PLATEAU STATE AT THE PRESENTATION OF THE 2022 APPROPRIATION BILL TO THE PLATEAU STATE HOUSE OF ASSEMBLY ON THURSDAY OCTOBER 21, 2021
The Rt. Hon. Speaker, Plateau State House of Assembly,
Honourable Members and,
Citizens of Plateau State
“A BUDGET OF ECONOMIC RECOVERY AND CONSOLIDATION OF INCLUSIVE INFRASTRUCTURAL GROWTH 2”

1. It is with great pleasure and honour that I present the 2022 proposed Appropriation Bill that defines estimates of revenue and expenditure of the Plateau State Government to this Honourable House on behalf of the Citizens of Plateau State.
2. Let me start by appreciating the leadership of this House headed by the Rt. Honourable Speaker Nuhu Abok Ayuba. I also appreciate the entire Honourable Members of this esteemed House for giving me this opportunity to make this presentation of the 2022 budget estimates as required by law.
3. Mr. Speaker, you may recall that a similar opportunity was given to me on Wednesday, 11th, November 2020 to present before this Honourable House, the 2021 proposed budget estimate tagged “Budget of Economic Recovery and Consolidation of Inclusive Infrastructural Growth”.
4. The budget was aimed at consolidating on our past achievements in order to improve our stewardship towards accelerated socio-political and economic development of the State. At the same time, the budget was targeted towards ensuring that we recover from the devastating impact of the Corona Virus Pandemic which affected all sectors of the economy.
5. To emphasize our administration’s commitment and resilience to the ideals of continuity in governance and programme implementation as well as sustainability, the 2021 budget was anchored on our Rescue Administration’s three pillar policies of Peace; Security and Good Governance; Infrastructural Development and Sustainable Economic Rebirth.
   LOOKING BACK AT THE 2021 BUDGET
6. Mr. Speaker, Honourable Members, before I present the 2022 proposed estimates, permit me to take a retrospective look at the 2021 Budget. You may also recall that last year, I laid before you a proposed budget estimate of One Hundred and Thirty-Three Billion, Four Hundred and Eighty-Two Million, Seven Hundred and Five Thousand, Four Hundred and Fifty-Seven naira (133,482,705,457.00) only.
7. After legislative consideration and scrutiny, this House eventually passed into law a budget size of One Hundred and Forty-Seven Billion, Five Hundred and Thirty-Seven Million, Eight Hundred and Nineteen Thousand, Eight Hundred and Fifty-One naira (147,537,819,851.00) only which I subsequently signed into law on 20th December 2020.
8. The budget had a recurrent estimate of Ninety Billion, One Hundred and Ninety-Three Million, Twenty-Nine Thousand, Seven Hundred and Twenty-Three naira (90,193,029,723.00) only and a capital component of Fifty-Seven Billion, Three Hundred and Forty-Four Million, Seven Hundred and Ninety Thousand, One Hundred and Twenty-Eight naira (57,344,790,128.00) only.
   REVENUE MOBILIZATION AND GENERATION 2021
9. It is a known fact that revenue generation remains a key factor to any successful budget implementation.

Therefore, in our effort to meet revenue targets, most especially the internally generated revenue (IGR), new strategies were adopted by the Plateau State Internal Revenue Service including the engagement of a reputable revenue consulting firm which resulted to a marginal increase in the internally generated revenue per month so far.

10. One of the key steps we took in boosting the IGR of the State was the commencement of the full implementation of the Plateau State (Consolidated) Revenue Law otherwise known as “Revenue Law 2020”. Having restructured the Plateau State Internal Revenue Service (PSIRS), we inaugurated the new Governing Board as well as the Plateau State Revenue Council as provided for in the law. I must say that the implementation of the law is work in progress and we are determined to ensure we get to the peak of it.
11. In the spirit of accountability and transparency, during the year under review, (January to June) 2021, a total sum of Fifty Seven Billion One Hundred and Ninety Three Million Five Hundred and Twenty Four Thousand One Hundred and Forty Five Naira Nineteen Kobo (57,193,524,145.19) only accrued to the State coffers from the following sources:
    A. IGR: Fifteen Billion, Nine Hundred and Eight Million, Nine Hundred and Forty-Seven Thousand, Seven Hundred and Five Naira, Seventy-Nine kobo (15,908,947,705.79) only.
    B. SRA: Twenty-Eight Billion, One Million, Five Hundred and Twenty-Seven Thousand, Two Hundred and Seventy-One Naira, Seventy-Seven kobo (28,001,527,271.77) only.
    C. VAT: Eleven Billion, Six Hundred and Forty-Four Million, Seven Hundred and Thirty-Six Thousand, Nine Hundred and Sixty-Six Naira, Ninety-Eight kobo (11,644,736,966.98) only.
    D. Others: Four Hundred and Twenty-Five Thousand, Seven Hundred and Fifty naira (425,750.00) only.
    E. 13% Derivation on Solid Minerals: Three hundred and thirty-eight million, three hundred and twenty-four thousand, two hundred and sixty-four naira, seventy-six kobo (338,324, 264.76) only.
    F. Grants: One Billion, Two Hundred and Ninety-Nine Million, Five Hundred and Sixty-Two Thousand, One Hundred and Eighty Five Naira, Eighty-Nine kobo (1,299,562,185.89) only.
12. Also, to ensure that all tertiary institutions in the State are encouraged to grow at their own pace, the Rescue Administration has sustained the approval for the 100% retention of revenue collections for their running cost and other funding needs. We also intend to do more for them as our revenue improves.

RECURRENT EXPENDITURE 2021

13. Mr. Speaker, Honourable Members, in order to ensure the smooth running of Government activities and sustain the good relationship enjoyed with labour over the past six years, we have kept faith with regular payment of salaries and wages of workers as at when due. We have also kept faith with the implementation of minimum wage, staff progression in terms of promotion, annual increment and advancement.
14. During the period under review (January – June), the sum of Thirty-Five Billion, Six Hundred and Forty-Seven Million, Nine Hundred and Ninety-Three Thousand, Six Hundred and Fifty-Seven naira, Forty-Two kobo (35,647,993,657.42) only was spent as recurrent expenditure for the payment of workers’ wages, pensions, gratuities and other Government running costs. Settlements of public debts and liabilities have also received deserved attention.
15. Equally, to ensure that we maintain a healthy workforce and cater for our citizens’ health, our administration facilitated the implementation of the State Health Insurance Scheme through the Plateau State Contributory Health Management Agency (PLASCHEMA). So far, civil servants and other citizens in both formal and informal sectors are being enrolled and are already accessing qualitative and affordable healthcare.
16. Again, in ensuring that the lives and properties of our citizens are secured, Government gave prompt attention to the security situation of the State by enhancing the capacity of law enforcement agencies and Operation Rainbow to respond rapidly to any threat to peace. We purchased 50 security patrol vans and 200 security motorcycles which were distributed to the relevant agencies.

CAPITAL EXPENDITURE 2021

17. In the 2021 fiscal year, Government was able to expend the sum of Six Billion, Seven Hundred and Forty-Seven Million, One Hundred and Fourteen Thousand, One Hundred and Fifty-One naira, Sixty-Seven kobo (6,747,114,151.67) only on capital projects in the first and second quarters (January – June).
18. The said amount was spent on critical projects in the Administrative, Economic, Judiciary/Law/Justice, Regional/Geographical as well as the Social Sector. The emphasis of this administration remains continuity in governance where projects inherited from the previous administration are not abandoned while those initiated by this administration cutting across various sectors are carried out.

THE 2022 PROPOSED BUDGET ESTIMATES

19. Mr. Speaker, Honourable Members, having highlighted the 2021 budget performance, it is now expedient to furnish this Honourable House with the 2022 budget estimates tagged “Budget of Economic Recovery and Consolidation of Inclusive Infrastructural Growth 2”.
20. Permit me Mr. Speaker to once again remind us that the Medium-Term Expenditure Framework (MTEF) is still key in the implementation of our Budget and therefore, the 2022 proposed estimate is still anchored on our Rescue Administration’s Three Pillar thrust of “Peace, Security and Good Governance; Infrastructural Development; and Sustainable Economic Rebirth”.
21. Mr. Speaker, the Fiscal Assumptions and Parameters for the 2022 proposed Budget Estimates are as follows:
    i. Exchange Rate of N410.15 per US Dollar
    ii. Projected Gross Domestic Product GDP of 4.2%
    iii. Crude Oil Price of $57 Dollar per Barrel
    iv. Daily Crude Oil Production of 1.88 Million Barrels
    v. 13% Inflation Rate
22. The rationale behind this budget is to continue to emphasize the present administration’s commitment and resilience in governance, policy and programme implementation as well as sustainability in socio-economic prosperity of our State especially as we continue to recover from the impact the Corona Virus Pandemic.
23. Again, it is the desire of this administration to continue consolidating on its previous achievements since it came into office. The budget is prepared under a reasonable degree of consistency both in policy and implementation to enable the government achieve the vision of the three-pillar policy of Peace, Security and Good governance, Infrastructural Development and Sustainable Economic Rebirth.
24. In our quest to carry citizens along, the Government engaged citizens through a series of consultative town hall meetings with stakeholders to get their input into the budget estimates that I shall lay before you shortly.
25. Having considered the needs of citizens, Government is proposing a budgetary spending in the total sum of One Hundred and Six Billion, Eight Hundred and Seven Million, Two Hundred and Sixty-Seven Thousand, Six Hundred and Forty-Two Naira, Twelve kobo (106,807,267,642.12) only in 2022 fiscal year.
26. This consists of Seventy-Six Billion, Two Hundred and Sixty-Three Million, Seven Hundred and One Thousand, Six Hundred and Forty-Four Naira, Sixty-Two kobo (76,263,701,644.62) only as recurrent expenditure representing 71.4% of the total budget. Thirty billion, five hundred and forty three million, five hundred and sixty five thousand, nine hundred and ninety seven naira, fifty kobo (30,543,565,997.50) only is earmarked as capital estimate representing 28.6% of the total budget.
27. This indicates a decrease of Forty Billion, Seven Hundred and Thirty Million, Five Hundred and Fifty-Two Thousand, Two Hundred and Eight naira, Eighty-Eight kobo (40,730,552,208, 88) only on the 2021 total approved budget.
    EXPECTED REVENUE
28. The projected recurrent revenue in the 2022 fiscal year is One Hundred and Six Billion, Eight Hundred and Seven Million, Two Hundred and Sixty-Seven Thousand, Six Hundred and Forty-Two naira Twelve Kobo(106,807,267,642.12) only. This consists of the following:
    i. Internally Generated Revenue (IGR): Twenty-Four Billion, One Hundred and Ninety Nine Million, Four Hundred and Seventy-Five Thousand, Two Hundred and Twenty Two naira, Twelve Kobo (24,199,475,222.12) only.
    ii. Statutory Revenue Allocation (SRA): Fifty-Five
    Billion Naira (55,000,000,000.00) only.

iii. Aids and Grants: Three Billion, Nine Hundred and
Eighty-Two Million, Three Hundred and Thirty-Nine Thousand, Five Hundred and Eighty-Four naira (3, 982, 339, 584.00) only.
iv. Capital Development Fund (CDF): Three Billion,
Six Hundred and Twenty-Five Million, Four Hundred and Fifty-Two Thousand, Eight Hundred and Thirty-Six naira (3,625,452, 836.00) only.
v. Domestic Loans: The sum of Twenty Billion Naira
(20,000,000,000.00) only.

29. Mr. Speaker, Honourable Members, from the above
    projected revenue you will observe that the 2022 is in deficit of N20 Billion and therefore has to be sourced to balance the Budget. The sum of N18,746,059,992.57 will be sourced from the Federal Government while the balance is to come from other financial institutions.

RECURRENT EXPENDITURE

30. The details of the proposed 2022 recurrent expenditure of Seventy-Six Billion, Two Hundred and Sixty-Three Million, Seven Hundred and One Thousand, Six Hundred and Forty-Four Naira, Six-Two kobo (76,263,701,644.62) only is made up of the following:
    i. Personnel Costs, Salaries and Pensions: Thirty-Nine Billion, One Hundred and Eighteen Million, Nine Hundred and Forty-Five Thousand, Five Hundred and Four Naira, Forty-Six kobo (39,118,945,504.46) only.
    ii. Overhead Cost and Consolidated Revenue Fund Charges: Thirty-Seven Billion, One Hundred and Forty-Four Million, Seven Hundred and Fifty-Six Thousand, One Hundred and Forty-Naira, Sixteen kobo (37,144,756,140.16) only. The recurrent expenditure captures emolument of civil servants, pension and gratuity, increment and promotion with special consideration given to the two arms of Government (Judiciary and Legislature) which were recently granted full autonomy.
    Overhead cost of all MDAs was also considered during the projection to enable smooth and effective running of offices.
    CAPITAL EXPENDITURE BREAKDOWN 2022
31. Mr. Speaker, Honourable Members, the proposed capital expenditure for the fiscal year’s budget is Thirty Billion, Nine Hundred and Forty-Three Million, Five Hundred and Sixty-Five Thousand, Nine Hundred and Ninety-Seven Naira, Fifty kobo (30,943,565,997.50) only. This represents 28.6% of the total budget. The sectoral allocation is as follows:
    i. Administrative Sector: Seven Billion, Nine Hundred and Nineteen Million, Nine Hundred and Thirty-Two Thousand, Three Hundred and Thirty-Seven Naira, Eighty-Two kobo (7,919,932,337.82) only.

ii. Economic Sector: Twelve Billion, Nine Hundred
and Ninety-One Million, Five Hundred and Twenty-Two Thousand, Four Hundred and Seven Naira, Sixty-Eight kobo (12,991,522,407.68) only.
iii. Law/Justice Sector: One Billion, Three Hundred
and Ninety-Two Million, Eight Hundred and Ten Thousand naira (1,392,810,000.00) only.
iv. Social Sector: Eight Billion, Two Hundred and
Thirty-Nine Million, Three Hundred and One Thousand, Two Hundred and Fifty-Two naira (8,239,301,252.00) only.

SUB-SECTORAL ALLOCATION HIGHLIGHTS

32. Further specific breakdown of allocations to various sectors and MDAs contained in the 2022 budget estimate are highlighted as follows:
33. Administration: The Rescue Administration is proposing to commit the sum of Seven Billion, Two Hundred and Fifty-Four Million, Four Hundred and Sixty-Seven Thousand, Eight Hundred and Thirty naira, Fifty kobo (7,254,467,830.50) only representing 23.75% of the capital estimate.
34. Agriculture: To boost the Agricultural sub-sector, government has earmarked the sum of Three Billion, Fifty-One Million, Eight Hundred and Forty-Two Thousand, Nine Hundred and Seventy-Seven naira (3,051,842,977.00) only representing 9.99% of the total capital estimate.
35. Commerce and Industries: The sum of One Billion, Five Hundred and Ninety-One Million, Five Hundred and Ninety-Two Thousand naira (1, 591, 592, 000.00) only representing 5.21% of the capital estimate has been allocated to this sub-sector for executing their major projects.
36. Information and Communication: For this sub-sector, the sum of Three Hundred and Fifty-Eight Million, Seven Hundred and Eighty-Three Thousand naira (358,783,000.00) only has been earmarked for their various projects. This represents 1.17% of the total capital estimate.
37. Justice/Law/Judiciary: The Judiciary sub-sector has been allocated the sum of One Billion, Four Hundred and Seventy-Nine Million, Eight Hundred and Ten Thousand naira (1, 479, 810, 000.00) only representing 4.84% to finance their critical projects below:
38. Lands, Housing and Urban Development: In this sub-sector, the sum of Nine Hundred and Twenty-Six Million, Five Hundred and Forty-Two Thousand, One Hundred and Forty-Three naira (926,542,143.00) only has been allocated for their various projects and programmes. This represents 3.03% of the capital projects.
39. Science and Technology: The Science and Technology sub-sector has been allocated the sum of Eighty-Two Million, Seven Hundred Thousand naira (82,700,000.00) only and it represents 0.27% of the capital estimate.
40. Tourism, Culture and Hospitality: The sum of One Hundred and Twenty-Eight Million naira (128,000,000.00) only has been allocated to this sub-sector for their various capital projects. This represents 0.42% of the capital projects.
41. Water Sanitation and Energy: These very important sub-sectors have an allocation of Three Billion, One Hundred and Ninety Million, Three Hundred and Eighty-Two Thousand, Eight-Nine naira (3,190,382,089.00) only representing 10.45% of the total capital estimate.
42. Education: Government has allocated the sum of Three Billion, One Hundred and Twenty-Two Million, Five Hundred and Sixty-Four Thousand, Two Hundred and Sixty-Seven naira (3,122,564,267.00) only representing 10.22% for the completion of on-going projects in the sector.
43. Environment and Mineral: In order to boost environmental control in the State, the sum of One Billion, Two Hundred and Twenty-Two Million, Four Hundred and Sixty-Four Thousand, Eight Hundred and Sixty naira (1,222,464,860.00) only representing 4.00% of the total capital projects has been allocated to these sectors.
44. Finance and Economic Sector: The sum of Four Hundred and Seventy-Seven Million, Five Hundred and Seventy-Four Thousand, Seven Hundred and Six naira (477,574,706.00) only representing 1.56% of the capital estimate has been allocated to this sub-sector.
45. Health: This sub-sector is allocated the sum of Three Billion, Three Hundred and Sixty-Six Million, Five Hundred and Twenty-Two Thousand, One Hundred and Twenty-Five naira (3,366,522,125.00) only representing 11.02% of the capital budget.
46. Women, Youth and Sports: In view of the important role this sub-sectors play in the socio-economic development of the State, the sum of Two Hundred and Three Million, Two Hundred and Ninety Thousand naira (203,290,000.00) only has been earmarked for their major projects. This represents 0.67% of the capital estimate.
47. Works and Transport: Government allocated the sum of Four Billion, Eighty-Seven Million, Thirty Thousand naira (4,087,030,000.00) only representing 13.38% of the capital estimate. This is to enable the sector to finance capital projects especially the on-going projects in the State.
48. Mr. Speaker and Honourable Members, although the complete details of the breakdown of specific projects and programmes are contained in the estimates to be laid before you, which will be further espoused by the Ministry of Budget and Planning in further briefings to the public, permit me to point out some of the key projects we hope to carry in the coming fiscal year that will impact the economy and governance of the State.
49. In addition to continuing work on completing on-going infrastructural projects across the three Senatorial Districts of the State, we intend to break ground on new ones. Among them is the construction of the British-American Junction Flyover and dualization to Lamingo Junction Roundabout. Similarly we shall carry out the design of Master Plan for some selected urban areas in Plateau State namely: (Heipang, Mangu and Shendam).
50. While we hope to complete the building of High Court Complex Phase 1 in Jos, we shall also embark on the renovation of old High Court Complexes and 35 Magistrate Courts to provide conducive environment for the Judiciary to perform its duties.
51. We shall also establish a Microfinance Development Fund to propel entrepreneurship and accelerate the growth of the Micro and Small Scale Industry in the State for job creation, youth empowerment and poverty reduction.
52. I also wish to also re-assure this Honourable House and indeed the citizens of Plateau State, that the Legacy Projects will be completed and delivered as envisaged. Government is doing everything possible to ensure that the people enjoy the benefits of those projects.
    CONCLUSION
53. Mr. Speaker, Honourable Members, you will realise the sharp drop in the total budget size compared to last year and the previous years. This has become necessary because we realized that each year’s budget deviation performance was on the increase as the annual Budgets were characterized by high deficit projections.
54. We are currently constrained with the challenge of growing debt servicing. We can no longer afford to go for more loans as our monthly debt repayment is above our IGR generation.

To reduce our deficit projections we decided to as they say, “cut our coat according to our clothe” by decreasing the 2022 proposed budget to N106,807,267,642.12 compared with that of 2021 which was N147,537,819,851.00. This proposal is also in line with SFTAS and NGF guidelines.

55. As I present to you on behalf of the people of Plateau State this 2022 budget, it is my hope that you will give it the necessary attention it deserves. While urging this honourable House to diligently peruse and deliberate on the budget, I look forward to your cooperation in the speedy passing of the budget to enable us commence implementation and service delivery from the onset of the new financial year.
56. An accelerated passage of the budget is also going to be a panacea for the State to qualify for the SFTAS Disbursement linked indicators I and II (DLIs I and II) and Eligibility Criteria (EC I) for 2022.

I will take this opportunity to thank my Executive Team, the Legislature and Judiciary for their cooperation, collaboration and understanding during the adoption and implementation of Autonomy for the three Arms of Government in the State which served as a template for the entire nation.

57. Also note Mr. Speaker and Honourable Members that in line with the global efforts to curb the devastating effects of Climate change, we have made sizeable provisions despite our meagre resources in several corresponding MDAs to prepare our people and our State in mitigating this phenomenon. We shall continue to advocate for support from the private sector and donor agencies to contribute in this fight. Everyone is a stakeholder in this fight and we must not sit and wait to be caught unawares.
58. My hope is that together we shall continue to partner to ensure that there is synergy and collaboration between the three Arms of government in ensuring the delivery of good governance to our people. While thanking you for your time I wish to extend my best wishes to you all and the entire citizens of the State, and to also appreciate all the support we have been receiving overtime.
59. Having fulfilled the provision of section 121 sub-section 1 of the 1999 constitution of the Federal Republic of Nigeria (as amended) by reading the budget estimates, it is now my honour to seek the permission of the Right Honourable Speaker and Honourable Members of the House, to lay the 2022 budget of One Hundred and Six Billion, Eight Hundred and Seven Million, Two Hundred and Sixty-Seven Thousand, Six Hundred and Forty-Two naira, Twelve kobo (106,807,267,642.12) only for consideration and passage into law.
60. Thank you and God bless Plateau State, and the
    Federal Republic of Nigeria.

Rt. Hon. (Dr.) Simon Bako Lalong, KSGG
Executive Governor
20th October 2021

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Gov. Lalong Speech at Presentation of the 2022 Appropriation Bill