His Excellency, the Executive Governor of Akwa Ibom State, Chief (Dr) Godswill Obot Akpabio has presented the 2011 budget proposals, tagged “Budget of Consolidation and Transformation” to the state House of Assembly. In his address on the occasion of the presentation, the Governor started by commending the exceptional cooperation, total support and complete loyalty of the patriotic honorable members of the State House of Assembly. He noted that the phenomenal transformation witnessed in the state in the past 3 and half years is as a result of the mutual relationship existing between the Legislature and the Executive.

The 2011 appropriation bill as presented by the governor to the State House of Assembly is N309.51 billion with special emphasis on industrialization, security, healthcare, education, and completion of ongoing people oriented projects among others. The figure represents a decrease of N75.837 billion or 19.7% over the 2010 revised budget of N385.346 billion.

The 2011 budget estimate is based on the state's projected recurrent revenue of N233.59 billion as against the revised estimates of N238.86 billion for 2010. Of the total proposed budget, N52.20 is allocated to recurrent expenditure while N257.30 billion is for capital projects and programmes. Christened ‘Budget of Consolidation and Transformation’, Governor Akpabio said the major policy thrust and objective of the 2011 budget is predicated on the completion of ongoing people-oriented projects and the establishment of new industries the state.

The governor stated that, at least one cottage industry each is to be established in the 31 local government areas of the state to create more employment opportunities for the people of Akwa Ibom State. Chief Akpabio said the budget will as well seek to develop human capital and enhance services in the education and health services sectors with a view to improving the living standard of the people. To actualize the policy thrust and objectives of the 2011 budget, the governor disclosed that emphasis would be given to the diversification of the state’s revenue sources. He explained that agriculture, Micro Small and Medium Enterprise Scheme (MSMEs) and the aviation and maritime subsectors of the state's economy would be exploited as the major economic growth drivers.

In a review of the 2010 budget, Chief Akpabio stated that N298.52 billion was originally approved for total expenditure. “However, during the third quarter of the year, this was revised to N385.34 billion following approval of a supplementary budget of N86.82 billion by the State House of Assembly.” This revised budget was in the area of capital expenditure, the Governor added.

The 2010 Revised Budget outlay of N385.34 billion was made up of N48.72 billion for recurrent expenditure, while N336.61 billion was for capital expenditure. Gov. Akpabio further stated that as at September, the actual recurrent revenue amounted to N175.71 billion as against the revised approved estimate of N238.86 billion. The sum of N2.16 billion was realized from other capital receipts excluding recurrent surplus. A breakdown of the receipts shows that N10.19 billion was realized from internal sources; N19.06 billion from Statutory Allocation; N6.05 billion from Value Added Tax (VAT) and N140.39 billion from derivation. In the area of expenditure, a total of N31.70 was spent during the period under review on recurrent services, namely personnel costs N13.97 billion; overhead costs N8.08; public debt N5.97 billion; pensions and gratuities N3.67 billion. A total sum of N144.66 billion was spent on capital projects within the period. “Our capital budget expenditure is described in detail in the Budget Implementation report, which has been prepared to facilitate your consideration of the 2011 Budget”, the Governor told the House.

The policy thrust of the 2011 Budget, according to the Governor, is predicated on the need to complete on-going projects and the need to establish new industries in the state to create more employment opportunities. The Budget will also seek to develop human capital and enhance services in the education and health sectors with a view to improving the living standard of our people.

Specifically, the main policy objectives of the 2011 Budget therefore are:

• Developing and implementing strategic plans for the complete industrialization of the state and the enhancement of our employment generating capacity;

• Optimizing the sources of the key economic growth drivers, particularly agriculture and Micro Small and Medium Enterprise Scheme (MSMEs) and laying a foundation for real sector growth;

• Developing strong sectored linkages in the development process; and

• Fostering sustained social and economic development through enhanced business friendly environment, job creation, and the security of lives and property.

Implementation Strategies:

To achieve this aspiration, specific strategies adopted in this budget will include the following:

• Building a strong fiscal regime through the expansion of our revenue base and the elimination of wastages and leakages in our expenditure profile;

• Building on the current foundation so far laid and consolidating the gains of a world class infrastructural development;

• Reinvigorating Agriculture and Agro-Allied industries by making the sector attractive and responsive to global vicissitudes. To make government subsidiaries reach end-users and generate output to ensure a sustainable food supply for consumption as well as provide raw materials to agro-allied industries.

• Expanding and diversifying the resource base of the state’s economy through the encouragement of Public- Private Partnership (PPP) and Direct Private Investments (DPI);

• Creating a reliable human empowerment mechanism that is accommodative; gender- responsive and youth-targeted, to mitigate vulnerability, through the provision of safety nets;

• Building an educational system that is accessible, qualitative and market-driven at all levels through the continuation of the existing government policy on free and compulsory education in order to achieve a 100% access to education at Primary and Secondary School levels and 50% at tertiary levels, with a supply of complimentary facilities across the state.

• Ensuring job creation through industrial innovations in oil and gas sector, power sector services and through various small and medium scale enterprise initiatives;

• Building an efficient security network around the state, that is proactive to foil attacks and make the state more peaceful, thereby encouraging investors;

• Developing the tourism potentials in the state, in order to boost the state's revenue base and enhance employment generation;

• Building the capacity of health officials and supplying world class facilities in health institutions across the state in order to provide an efficient healthcare delivery system that is available within walking distance and is responsive to the health challenges of the people.

• Re-engineering the public service to make it more efficient and productive;

• Providing affordable housing in designated urban centres;

• Continued intervention through inter-ministerial direct labour coordinating committee to sustain the pace of socio-economic transformation of our rural communities.
  

Highlight of the 2011 Budget:

Budget Size:
For the 2011 Financial Year, Government has made provision for total receipts as well as expenditure of N309.509 billion. This year's budget represents a decrease of N75.837 billion or 19.7% over the 2010 revised budget of N385.346 billion. Of the total proposed budget, N52.207 billion is allocated to recurrent services, while N257.302 billion is for capital projects and programmes representing a ratio of 16.90% to 83.1%

Revenue:
The total projected recurrent revenue is estimated at N233.595 billion as against the previous estimates of N238.867 billion for 2010.

Sectoral Allocation:
Sectoral allocation of the total estimated expenditure of N309.509b shows that N7.909b has been proposed for Agriculture, N31,171b for education, science and technology, N53.826b for land, Housing and Urban Development, N50.545b for industries, commerce and tourism, N9.125b for rural development, N12.501b for health, N51.619b for road and transport, N17,007b for information, sports and social development and finally for General Administration broken into N8.942b, N7.112b and N54.139b for state judiciary, State House of Assembly and general administration of the public service respectively.