See How Governor Wike Plans To Spend $470 Billion In 2017

Governor Wike, during his presentation of the proposed budget on Wednesday, December 28, said Rivers state will be 50 years old next year, and the budget was christened “The golden jubilee of of accelerated development” to herald this historic landmark.
A breakdown of the 2017 budget indicates that the total projected capital expenditure is N329 billion representing 70 percent, while N141 billion is proposed for recurrent expenditure.
Wike said: “This budget is premised on the need to consolidate on our achievements for 2016 and restore the State’s economy back to a sustained growth path and expand economic opportunities for all.”
According to the governor, the budget is underpinned by the following basic principles: Enhancing the business environment, including tackling the security challenges for the private sector to grow; expand the state tax revenue base, and drive Rivers economy through the value chain into becoming one of the largest economies in West Africa.
Wike said: “Second, committing a greater proportion of available resources towards infrastructure development and public works to stimulate economic growth, create employment and reduce poverty.”
He also claimed priority would be given to the following areas in 2017: Security of lives and property; Infrastructure development and maintenance; Education; Healthcare delivery; and Empowerment.
In the 2017 budget, the sum of N77.409 billion, representing nearly 40 per cent of total capital expenditures was allocated to the Ministry of Works to accelerate the development and expansion of infrastructure throughout the State in 2017.
The governor noted N30 billion was allocated to the ministry of education for 2017 to invest in providing educational infrastructure and improving the quality of education in the state.
The health sector got N27 billion, while women and youth development was allocated N1 billion for empowerment programmes.
Another N12 billion is spread across the budget for women empowerment. The governor said: “As we have often stated, the days of wasting scarce public resources on frivolities or inviable social and economic programmes are over for good.
“We have demonstrated in the last 17 months that focusing on real priorities not only delivers progress but also enables us to do more with less, and we will not deviate from this position in 2017.”
“Furthermore, we shall continue to encourage, support and attract private-sector investments, both local and foreign, in the diverse sectors of our economy to create well-paying jobs, reduce poverty and improve the socio-economic conditions of our people.”
On the financing of the budget, the governor said that the 2017 budget will be funded from revenue receipts from: (i) the Federation Account Allocation Committee (FAAC), (ii) the 13% Derivation proceeds, (iii) Value Added Tax (VAT), (iv) Reimbursements, (v) Internally Generated Revenue (IGR) and (vi) Domestic credits.
He added: “We are projecting an aggregate sum of N220 billion from FAAC, distributed as follows: N23 billion from statutory allocation.”
“N102 billion from 13% mineral derivation fund, N16.6 billion from VAT, N8 billion exchange gain, N70 billion for Paris Club and other reimbursements, and N400 million from capital receipts.”
Explaining the drive of the 2017 bugdet, Wike said: “In terms of sectoral allocation, the projections shows that N14.16 billion is allocated to the administrative sector; N115.24 billion is allocated to the economic sector, N125.63 billion is allocated to the social sector, while N3.050 billion is allocated to the Law and Justice sector; and N70.915 billion is allocated to special heads.”
“The unprecedented increase in the capital expenditure, once again, underscores our commitment to direct substantial resources to the critical growth sectors of our economy, including addressing infrastructure gaps to accelerate economic growth, secure the State and improve the well being of our people.”
In his response, speaker of the Rivers state’s House of Assembly, Rt Hon Dabo Adams said the governor by the 2017 budget has proven that he is committed to the development of the state.
He commended the governor for ensuring that the budget covers all sectors of needs in the state.
Meanwhile, Kashim Shettima of Borno state presented N183.84 billion 2017 budget to the House of Assembly on Thursday, December 23.
The governor during his presentation announced that N13 billion has been earmarked for massive reconstruction and rehabilitation of destroyed towns and villages, including critical infrastructures in liberated communities.