DETAILED ANALYSIS OF THE YEAR 2009 BUDGET OF EKITI STATE PRESENTED TO THE GENTLEMEN OF THE PRESS AND THE GENERAL PUBLIC BY THE PERMANENT SECRETARY, MINISTRY OF FINANCE AND ECONOMIC DEVELOPMENT, MR. BUNMI FAMOSAYA ON TUESDAY, 31^ST MARCH 2009 AT THE CONFERENCE HALL, OLD GOVERNOR’S OFFICE, ADO-EKITI

The Secreatry to the State Government;

The Head of Service;

Chairmen of Boards and Commissions;

Members of the Organized Private Sector (OPS);

Gentlemen of the Press;

Distinguished Ladies and Gentlemen.

            I am delighted to welcome you to this occasion which is the breakdown of the year 2009 Budget recently approved by the State House of Assembly and signed into law on Tuesday, 17^th March 2009 by the Acting Governor, Right Honourable Tunji Odeyemi. The essence of this briefing is to provide a detailed analysis of the Budget to ensure greater and comprehensive understanding of Government Fiscal Policies in the current fiscal year by members of the public and at the same time solicit for support and co-operation of the entire people in the implementation process of the laudable programmes contained in the Budget.

You would all recall that on Tuesday 30^th December, 2008, the former Governor of Ekiti state, His Excellency, Engr. Segun Oni presented the year 2009 draft budget christened “BUDGET OF CONSOLIDATION” to the State House of assembly. The budget size of N65,797,397,180.26 was made up of N24,772,797,000.00 or 37.65% recurrent expenditure and N41,024,600,180.26 or 62.35% capital expenditure. These figures have however been reviewed by the State House of assembly to give room for equitable distribution of capital project with view improving the living standard of the generality of the people of Ekiti State. The new figures are made up of N31,097,245,035.00 or 34.30% for capital expenditure. The implication of this is that for the 2009 fiscal year, the Government of Ekiti Sate is expected to spend a total sum of N90,650,851.20.

Ladies and gentlemen, permit me at this juncture to begin this budget analysis with a review of the general performance of the 2008 budget upon which the preparation of the year 2009 budget was based.

REVIEW OF YEAR 2008 BUDGET PERFORMANCE

            You will recall that the 2008 Budget tagged “BUDGET OF A NEW BEGINNING” was aimed at setting a solid economic base for the state.

            The budget as approved by the State House of Assembly and signed into law by Engr. Segun Oni was N81,428,834,960.14. This figure was later reduced to N80,713,885,080.94 in the 2008 revised budget. The revenue performance of the budget as at 31^st December 2008 is presented in the table below.

TABLE SHOWING 2008 REVENUE PERFORMANCE

Above shows that a sum of N 56,228,363,474.52 was the total actual revenue realized as at 31^st December, 2008. This depicts 77.98% performance. This is an increase of N 25,577,242,204.98 over and above the sum of N 30,651,121,269.54 realized in 2007. A 100% performance was recorded on MDG Conditional Grant Scheme while 39.7% was received as Reimbursement from Federal Government on road dualisation. VAT recorded 70.1% performance while the Internally Generated Revenue from Parastatals was as high as 344.82%. What informed this was that the revenue collected by parastatals were retained by respective Parastatals. This policy will however changed in 2009 where all parastatals with the exclusion of Tertiary Institutions are expected to turn in their IGR into the Treasury. This is to promote Transparency and Accountability. Adequate provisions have been made in the 2009 budget to meet the needs of all the affected parastatals.

REVIEW OF 2008 EXPENDITURE PERFORMANCE

TABLE SHOWING THE 2008 EXPENDITURE PERFORMANCE

A total sum of N 52,164,713,433.40 was the actual expenditure achieved as at 31^st December, 2008. This represents 64.06% performance and an increase of N 22,814,953,335.14 over and above the total actual expenditure of N 29,349,760,098.26 in year 2007. The actual recurrent expenditure as at 31^st December, 2008 was N 24,580,072,643.39 or 49.04% performance.

THE STRUCTURE OF YEAR 2009 BUDGET

            The 2009 budget is expected to consolidate the past achievements and further embark on other meaningful projects that would better the lot of the citizens of the state. Its preparation as involved wider consultations with stakeholders in the state. This is with a view to articulating their views and interest in the preparation of the budget. The foundation laying process has not been an easy task considering the numerous responsibilities of government in the face of dwindling resources available to government on monthly basis.

            Gentle-men of the press please permit me to mention too that the 2009 budget has taken a cue from the direction of the Federal Government budget. The Niger Delta problem coupled with the rapid fall in the price of crude oil in the international market and the global economic meltdown will drastically reduce the allocation of the state from the Federation Account. Consequently, the Federal Government bench-mark of 45 us dollar for crude oil per barrel was adopted for the preparation of the 2009 budget as against the 59 US dollars per barrel used for the 2008 budget. By implication, the statutory allocation, Value Added Tax (VAT) and other funds expected from the Federation Account will decline drastically. To meet up with the future challenges arising from the short fall in revenue from the Federation Account, the State Government has sensitized all MDAs to be creative, proactive and aggressive in their internal revenue generation drive.

Gentle-men of the press and distinguished personalities, it is apposite to mention at this point that the State Government intends to obtain a sizeable loan to service part of the 2009 capital projects. But I like to quickly add that necessary procedures and due process shall be followed in securing the loan which shall be targeted towards some essential capital projects that will better the lot of the good people of Ekiti State.

5.0       OBJECTIVES OF THE 2009 BUDGET

5.1       With this scenario at the back of our minds, I wish to state here that the objectives or policy thrust in 2009 fiscal year include:

            (i)         Expansion of the internal revenue base through a pragmatic approach.

            (ii)        Reduction in the level of unemployment with the ultimate goal of  

                        alleviating poverty.

(iii)               Improvement in the quality and functionality of education.

(iv)              Promotion of economic activities through support for micro, small and medium scale enterprises.

(v)                Maintenance of effective, efficient and well motivated public service for enhanced productivity.

(vi)              Close supervision and monitoring of all government projects;

(vii)             Ensuring budget discipline through proper utilization and monitoring of income and expenditure of government

(viii)           Increasing the effectiveness, functionally and infrastructure of the health sector with a view to improving the quality of health care delivery.

YEAR 2009 REVENUE PROJECTIONS

            The total size of the 2009 budget is N90,650,851,186.00. The budget is basically expected to be financed from the following sources;

i.          Statutory Allocation                  -           N17,240,000,000.00   -           19.02%

ii.          Value Added Tax                     -                5,000,000,000.00   -           5.52%

iii.         FAAC Augmentation                -                3,268,590,700.00   -           3.61%

            (Excess Crude Oil)

iv.         Internally Generated                  -               11,995,643,319.53  -           13.23%

            Revenue (IGR)

v.         Draw-Down on External            -                 4,804,566,229.00  -           5.3%

            Grants

vi.         MDG Conditional Grants          -                 1,500,000,000.00  -           1.6%

vii.        Reimbursement from Federal

            Government on Road

            Dualisation                                -                 2,434,412,567.67  -           2.69%

viii.       Internal Loan                            -                 36,654,807,418.54 -          40.44%

ix.         Ecological Fund                        -                  2,000,000,000.00  -          2.21%

x.         Transfer from 2008                   -                  5,547,397,180.26  -          6.12%

xi.         Others – like shares from joint

            Assets with Ondo State            -                    N205,433,771.00  -          0.23

                                    Total                -                  N90,650,851,186.00

            From the above, a sum of N17,240,000,000.00 is expected from the Federation account. This represents 19.02% of the total fund to service the 2009 budget. This indicates a decrease of N10,760,000,000.00 below the N28,000,000,000.00 approved in 2008 budget. This is as a result of the lower bench mark applied for the preparation of 2009 budget. On Internally Generated Revenue, it is the expectation of the State Government to hit a target of N11,995,643,319.53 this fiscal year. This is about 13.23% of the total resources to finance the 2009 budget. This shows a tremendous increase of N5,820,903,952.53 over and above the N6,174,739,367.00 approved in the 2008 budget as revenue expectation from both the Ministries and Parastatals. Members of the press, I earlier mentioned, that a bulk of the source of financing the 2009 budget will be through internal loan. Towards this end, a sum of N36,654,807,418.54 or 40.44% will come through this source.

EXPENDITURE

This head is made up of Recurrent and Capital Expenditure.

(A)       RECURRENT EXPENDITURE:-

            A total sum of N31,097,245,035.00 has been earmarked for the 2009 recurrent expenditure. This represents 34.30% of the total expenditure and N5,912,918,626.00 or 19.02% increase over and above N25,183,326,409.00 approved for the same purpose in 2008.

            The table below shows how the amount earmarked for Recurrent Expenditure in 2009 Budget are distributed;

            This administration has curtailed its recurrent expenditure proportion within the international best practice convention of maximum of 40% of total expenditure. This is to give room for execution of more capital projects. Despite the reduction in recurrent expenditure, I want to emphasize that appropriate attention shall be focused on welfare of public servants and retirees. Apart from prompt payment of salaries and allowances, a total sum of N850,000,000.00 has been allocated in the 2009 budget for the revolving staff loans scheme now consolidated in the office of Establishments and training. This amount covers land, housing and car loans to all civil servants, teachers and officials in the parastatals. We shall also embark on capacity building of all categories of public officers this year.

            You will recall that the former Governor, Engr. Segun Oni announced that all arrears of pensions and gratuities had been paid by the State Government by December 2007.

Consequently, a provision of a sum of N1,400,000,000.00 has been made in the 2009 budget for payment of pensions and gratuities.

            This government has equally set aside a total sum of N200,000,000.00 for the state’s Scholarship Scheme for Ekiti indigenes studying in various higher institutions in the country. The school feeding programme shall also be sustained by this government and a sum of  N300,000,000.00 has been budgeted for this purpose this fiscal year.

(B)       CAPITAL EXPENDITURE

Distinguished members of the fourth estate, a total sum of N59,553,606,151.00 is to be expended on capital projects this fiscal year.

This represents 65.70% of the total budget and N3,308,097,599.86 or 5.55% over and above N56, 345,508,551.14 approved for the same purpose in the year 2008. Below is the capital outlay of the 2009 budget:

1.         ECONOMIC SECTOR

a.         Agriculture and Rural Development       -             2,951,880,937.00

b.         Commerce and Industry, Job                                                                                                

            Creation and Micro Credit                    -             3,330,562,500.00

c.         Electricity and Technology                    -                535,750,000.00

d.         Water and Sanitation                            -                984,000,000.00

e.         Road Projects                                      -           24,828,374,438.80

f.          Housing Corporation                            -                919,921,875.80

                        Sub Total Economic Sector   =        33,550,489,751.80 – 56.34%

2.         SOCIAL SERVICE SECTOR

a.         Education                                             -           6,454,180,000.00

b.         Health                                                  -           5,796,762,500.00

c.         Information Services                             -              647,820,000.00

d.         Youth and Sports Development            -              885,030,000.00

e.         Women Affairs and Social Welfare       -                58,800,000.00

Sub Total Social Services Sector     -         13,842,601,500.00 – 23.24%

3.         ENVIRONMENTAL SECTOR

a.         Lands, Housing and Environment          -           1,596,000,000.00

b.         Sewage and Drainage                           -              884,500,000.00

c.         Emergency and Waste Managent          -              399,750,000.00

                        Sub Total                                -           2,892,750,000.00 – 4.86%

4.         General Administration Sector               -           9,267,764,900.00 – 15.56%

                        Grand Total                            =         59,553,606,151.80 – 65-70%

1.         ECONOMIC SECTOR

            The Economic sector comprises the Agriculture and Rural Development programmes, SME and Poverty Reduction and Infrastructure. In view of the pivotal role of this sector in the overall development of the state, a sum of N33,550,489,751.80 has bee allocated to this sector in the 2009 Budget, representing 56.34% of the total capital budget and 37.01% of the total budget.

(A)       AGRICULTURE AND RURAL DEVELOPMENT PROGRAMMES

Distinguished ladies and gentlemen, you will agree with me that Agriculture is an important component of Ekiti State Economy. The state is endowed with arable land coupled with favorable climatic conditions suitable for several forms of agricultural production. In view of this, the state government has earmarked a total sum of N2,951,880,937.00 for the various agriculture and rural development activities in the 2009 budget. This amount represents 4.96% of the total capital budget.

The following provisions are made in 2009 budget for Agriculture and Rural Development projects:

            i.          Agricultural Services                             -           356,450,000.00

            ii.          Produce Activities                                 -             19,312,500.00

            iii.         Tree Crops Programme                        -             28,725,000.00

            iv.         Forestry                                               -             24,375,000.00

            v.         Livestock                                             -             28,500,000.00

            vi.         Fisheries                                               -             15,750,000.00

            vii.        Veterinary                                            -             76,250,000.00

            viii.       Sericulture Programme              -             30,750,000.00

            ix.         Agric Development Programme            -           227,310,250.00

            x.         Cassava Revolution Program                -           178,712,000.00

            xi.         Fountain Agric Marketing Agency         -           626,000,000.00

            xii.        Afforestation                                         -             72,000,000.00

xiii.       Rural Development Programmes           -        1,254,632,987.20

(B)       SMALL AND MEDIUM SCALE ENTERPRISE AND POVERTY ALLEVIATION

            Distinguished Ladies and Gentlemen, we all know that the engine of development in any economy is the level of commercial and industrial activities engaged in by the people and that the level of industrial development will go a long way at determining the growth of its economy. It is therefore our determination to transform this state from a rural economy to one of great commercial and industrial enterprise, where our people can participate in competitive commerce.

            It is in the light of the fore-going that this sub-sector has an allocation of N3,330,562,500.00 or 5.59% in the 2009 capital budget. Thie amount is distributed among the following heads –

a.         Commerce and Industries - A sum of N777,187,500.00 is for commerce and industries. Some of the notable projects to be executed under this are:

i.          Establishment of Yam Export facilities at Ilasa-Ekiti                           -             75,000,000.00

ii.         Construction of Oba Adejuygbe Build Markets/Shopping Hall           -           200,400,000.00

iii.        Counterpart Fund for Industrial Development

            Intervention Fund                                                                             -            187,500,000.00

iv.         Government Counterpart Cash Contribution (GCCC) for Federal

            Cooperative Intervention Programmes                                              -              75,000,000.00

v.         Establishment of Industrial Parks                                                       -                9,375,000.00

vi.         Provision for market development                                                    -              75,000,000.00

vii.        Economic Development Council mat weaving PPP Initiative              -                37,500,00.00

(C)       TOURISM DEVELOPMENT

            Distinguished Ladies and Gentlemen, as you are probably aware, the state is well endowed with many Tourism Centres, which if properly developed can enhance the internally generated revenue capacity of the state. To make the tourist centres in the state more attractive, a total sum of N213,937,500.00 has been allocated to this head of expenditure in the 2009 budget. Out of this amount, a sum if N142,500,000.00 has been earmarked for the rehabilitation of Ikogosi Resort Centre while another sum of N45,000,000.00 has been set aside for Itawure Tourism project. The following tourist centres will also receive government attention in the 2009 budget.

i.                     Arinta Water fall, Ipole Iloro

ii.                   Olosunta Hills, Ikere

iii.                  Egbibu Lake, Ayetoro

iv.                 Okuta Gbokutaleri Ado-Ekiti

(D)       OTHERS: SMES AND POVERTY REDUCTION

            Gentlemen of the Press, I like to assure you that government is determined to fund adequately in 2009 budget, the various poverty alleviation programmes to enhance improvement in the standard of living of our people. Some of the provisions are highlighted below:

i.          Equity participation in quoted companies                       -           562,500,000.00

ii.          State contribution to Micro Finance Institutions             -           375,000,000.00

iii.         Ekiti Enterprise Development Agency (EFDA)              -           459,187,500.00

iv.         Job Crestion and Employment Programme                    -           142,000,000.00

v.         MICRO-Credit Loan Facility                                        -           721,875,000.00

vi          Ekiti State Community Based Poverty                                                  

            Reduction Programme                                                   -             76,875,000.00

vii         Intervention Fund for Special Projects or                       -                                  

            Investment                                                                    -           300,000,000.00

(E)       INFRASTRUCTURE

            The performance of any government is usually measured by its success in the area of water, electricity, housing and good roads. It is on this note that a substantial sum of N27,268,046,313.80 or 45.79% of the total capital budget is earmarked for this sub-sector

In the 2009 budget. This represents an increase of N2,293,097,812.61 or 8.41% over and above N24,974,948,501.19 approved in the 2008 budget.

(F)       ROAD NETWORK

            You would agree with me that most of the State and Federal roads in the state were in a deplorable state in the past. This situation has since improved due to an aggressive road revolution programme initiated by the administration of Engr. Segun Oni. Further attention shall be given to opening up of more roads this year while all on-going road projects shall also be completed. Consequently, a total sum of N24,828,374,438 or 41.70% of the total capital budget shall be expended on road construction and rehabilitation this fiscal year. Out of this, a sum of N8,300,703,575.04 will be spent on the on-going  road projects, another sum of N1,989,925,938.26 will be expended on Rehabilitation and asphalt overlay of some roads, while N12,660,433,414.46 has been earmarked for township and new road projects in the 2009 budget. A sum of N500,000,000.00 has been earmarked for design works on Highways and Bridges and N600,000,000.00 will be channeled towards the construction of bridges on Ero and Itapaji rivers. I want to mention also that the Ekiti State Road Maintenance Agency (EKROMA) shall receive due attention of this government. Gentlemen of  the Press, a total sum of N1,877,291,510.15 has been earmarked for the Agency in the 2009 budget for road construction and for the purchase of road construction equipment.

(G)       WATER CORPORATION

            Government is not unmindful of the need to ensure a steady and regular provision of treated and drinkable water for all. It is in this light that a sum of N750,000,000.00 is earmarked in the 2009 capital budget for water related projects. This amount excludes N670,000,000.00 set aside in the recurrent expenditure as grants for payment of staff salary and other operational costs of the State water Corporation.

(H)       ELECTRIFICATION PROJECTS

            Distinguished audiences, we are all aware of the importance of electricity in the economic and industrial development of a state. This government will not relent in its efforts I this area. You would recall that the former government commenced experimentation of the solar street light which is already recording considerable success. More funds will be injected into this alternative source if the state is fully convinced and satisfied with the solar street light experiment. This government is however throwing a lot of challenges to private investors who are interested in developing other alternative sources of electricity in Ekiti State. I am to state that the government will provide necessary support and patronage.

            Further to the above, this government has made a provision of N516,275,000.00 for street light project in the 2009 budget while another capital provision of N414,500,000.00 has been allocated to Ekiti State Electricity Board. The Board is expected to expend N100,000,000.00 for rural electrification projects and another N190,000,000.00 for the purchase and installation of transformers to aid Relief Substations and replacement of faulty transformers.

(I)        INFORMATION TECHNOLOGY

            Ladies and Gentlemen, the Information and Communication Technology axis will not be left out in the 2009 budget. As you all know, the world has become a global village due to information technology advancement. To this end, the state is prepared to expend a sum of N121,250,000.00 on information and communication technology projects this fiscal year, out of which, a sum of N95,000,000.00 will be expended on wide area network for ministries and the House of  Assembly.

(J)        HOUSING

            Let me say here that government is determined to create conducive environment for the promotion of investment in the housing sector. Towards this, a total sum of N919,921,875.00 has been earmarked for the housing sector in the 2009 budget. Out of this amount, a sum of N800,000,000.00 will be expended on building construction and maintenance, while opening up and construction of roads at Government Estates in Ado – Ekiti will receive a sum of N40,000,000.00 and N13,125,000.00 will be spent on electrification works in the Government Estates.

(K)       SOCIAL SERVICE SECTOR

            Distinguished ladies and Gentlemen, the provision of essential social services for the generality of our people is paramount to the state government. To this end, a sum of N13,842,601,500.00 is projected for this sector in the 2009 budget. This represents 23.24% of the total capital budget. This sector comprises Education, Health, Information Services and Social Development.

A.        EDUCATION

            Ekiti State Government recognizes the importance of education which is no doubt the main industry of Ekiti State. It is therefore the plan of government to improve on the achievements recorded in this sector. To this end, a sum of N6,454,189,000.00 or 10.84% of the total capital budget is earmarked for this sub-sector in 2009 budget. The break-down of budgetary provision for Education Sector is as follows:

(a)                MINISTRY OF EDUCATION

A provision of N1,767,914,000.00 is for capital expenditure of the Ministry of Education in the 2009 budget. Some of the capital projects under the ministry are:

            (i)         Procurement of Computer sets and                  

                        Accessories to some JSS and SSS                                -   N37,500,000.00

(ii)                Rehabilitation of Public School buildings

And provision of Laboratory equipment                        -   N37,500,000.00

(iii)               Purchase of Library books for Public

Secondary Schools                                                       -   N67,000,000.00

            (iv)       Purchase of text books on core subjects                        - N106,000,000.00

(v)                Renovation of Dilapidated Class-rooms and

Hostel in five (5) Government Colleges                          -   N56,250,000.00

(vi)              Construction of Classrooms at the permanent sites        

Of 3 special schools at Ido, Ikere and Ikoro                  -   N30,000,000.00

            (vii)      Toyota Hilux and Buses for Schools                              -    N56,000,000.00

            (viii)      Construction and rehabilitation of Boarding in   

                        20 schools                                                                    -   N37,500,000.00

            (ix)       School intervention programmes for Primary,

Secondary and Tertiary Institutions                                -  N  86,500,000.00

            (x)        Supply of Desks, Chairs and other School                     -  N642,375,000.00

            (xi)       Establishment of State School of Agric                           -  N187,500,000.00

            (xii)      Ekiti Digital Education Projects                                      -   N   75,000,000.00

            (xiii)      Skill “G” Labless Laboratory Equipment                       -   N   80,000,000.00

(xiv)           Renovation of all Dilapidated Laboratory                      

Buildings                                                                       -   N   80,000,000.00

(xv)            Establishment of Continuous Education

Centre at Technical College Ado                                   -   N   15,000,000.00

(xvi)           Provision of Infrastructure in the three Science

Schools                                                                        -   N   75,000,000.00

(b)               EDUCATION PARASTATALS

The underlisted parastatals of the Education sub-sector are also adequately taken care of in the 2009 capital budget.

(i)         School Enterprises project                                -   N135,000,000.00

(ii)        State Universal Basic Education Board

(SUBEB)                                                         -N1,800,000,000.00

                        (iii)       Board for Technical and Vocational                 

                                    Education                                                         -   N366,875,000.00

                        (iv)       Teaching Service Commission               -     N87,500,000.00

                        (v)        Ekiti State Library Board                                  -     N61,750,000.00

                        (vi)       University of Ado Ekiti                          -   N465,000,000.00   

                        (vii)      College of Medicine Ado                                  -   N700,000,000.00

                        (viii)      University of Education Ikere Ekiti                    -   N750,000,000.00

                        (ix)       College of Education Ikere Ekiti                        -   N300,000,000.00

B          HEALTH

            One of the priority areas of this government is the provision of qualitative health for the citizens of the state. Consequently, a sum of N5,796,762,500.00 is set aside for the health sector in the 2009 budget. This represents 9.73% of the total capital budget. Out of   this amount, a sum of N4,540,875,000.00 is earmarked for various health activities under the ministry of Health. Some of these activities indicating the amounts allocated to them are listed below:-

(i)         Purchase and installation of theatre

Equipment at State Specialist Hospitals -           N 79, 750,000.00

(ii)        Establishment of staff Medical Centre                -           N30, 250, 000.00

(iii)       Purchase and installation of X-ray

Equipment at State Specialist Hospitals/

General Hospitals                                             -           N 28,250,000.00

(iv)       Improvement of theatre at State

Specialist Hospital and Dental Centre                -           N 50,000,000.00

(v)        Construction, building and furnishing

of Clinical Laboratory                                       -           N 200,000,000.00

(vi)       Rehabilitation of State Hospitals                        -           N 190,000,000.00

(vii)      Purchase of Office furniture and other

            Capital equipment                                 -           N 100,000,000.00

(viii)      Up-grading school of Health Technology

            To college of Health Technology                       -           N 42,500,000.00

(ix)      Implementation of  NHIS                                   -           N 300,000,000.00

(x)        Establishment of Eye Centre                         -   N 300,000,000.00

(xi)      Infrastructural & Technical up-grading

           of one General Hospital per LGA in the

           State                                                                 -           N 334,000,000.00

(xii)     Infrastructural & Technical up-grading

of  PHC per ward in the state                            -           N 900,000,000.00

(xiii)      Establishment of one (1) General

            Hospital at Ado                                                -           N 250,000,000.00

(xiv)    Purchase of Hospital Equipment                         -           N 1,500,000,000.00

C.                 CAPITAL PROVISIONS FOR OTHER PARASTATALS IN THE HEALTH SECTOR

i.          University Teaching hospital                              N 400,000,000.00

ii.          Central Medical Store (UDRF)             N   63,475,000.00

iii.         Hospital Management Board                             N 237,275,000.00

iv.         State action Committee on Aids (SACA)          N   56,337,500.00

v.         primary health Care development bureau           N 498,800,000.00

D.        INFORMATION AND SOCIAL DEVELOPMENT

            Ladies and gentlemen, we are all aware of the damages inadequate and distorted information can do to a government particularly in a critical period like this. It is in this light that the state Government shall continue to effectively use information as a veritable tool of developing the society. The Ekiti State Broadcasting Service and other Federal electronic media in the state shall receive due attention of this government. In carrying out all these lofty ideas, the State Government has set aside a sum of N 1,591,650,000.00 in the 2009 budget for information and Social Developments. This provision is shared among the following Agencies that fall within the sub-sector.

i.          Broadcasting Service of Ekiti State: a total sum of N 555,000,000.00 is allocated to this department. Important capital expenditures under this section are:

a.         purchase of installation of TV transmitter                       N 135,000,000.00

b.         Supply, installation and commissioning               N 180,000,000.00

            of IKW transposer and generating set

c.         TV/Radio outside broad casting equipment van N 127,500,000.00

d.         Construction of Broadcasting House                             N   75,000,000.00

E.         MINISTRY OF INFORMATION AND CIVIC ORIENTATION:     The ministry of information is allocated a total sum of N62,820,000.00 out of which N47,958,000.00 is for the production of calendars and other publications and another N30,000,000.00 for the purchase of digital printing machine and generating  set at the government printing press.

F.         MINISTRY OF YOUTH AND SPORTS:       This Department of government is allocated a total sum of N713,030,000.00 out of which N562,500.00 is earmarked for the first phase rehabilitation of the Olukayode Stadium, another N131,250,000.00 for the construction of lawn/table tennis academy.

G.        SPORTS COUNCIL:  A sum of N172,000,000.00 has been set aside in the 2009 capital budget of Ekiti State Sports Council. Important expenditure heads under this are – N15,000,000.00 for the purchase of grass-root sports equipment, N111,000,000.00 for the construction Lawn Tennis Court at the Trade Fair Complex while a sum of N43,000,000.00 has been set aside for consultancy on the rehabilitation of the stadium.

H.        MINISTRY OF WOMEN AFFAIRS

            A sum of N58,800,000.00 is earmarked in the 2009 capital budget for the Ministry of women Development Centre Igede.

3.         ENVIRONMENTAL DEVELOPMENT SECTOR

            Distinguish ladies and gentlemen; it is the determination of this government to embark on laudable programmes that will enhance the environmental standard of the State. Towards this ends, a total sum of N2,892,750,000.00 has been budgeted for the environmental sector this year, which accounts for 4.86% of the total capital budget for the year 2009. It equally shows 39% increase over and above the sum of N2,077,181,483.38 budgeted for this sector in the year 2008 budget. The underlisted sub-sectors in the sectors will receive the following amounts:

            (a)        Town and Country planning                              -           N412,500,000.00

            (b)        Sewage and Drainage                                       -           N884,500,000.00

            (c)        Emergency and Waste Management                  -           N399,750,000.00

            Details of the major projects to embark upon in this sector this year are highlighted below:-

(i)                  Land Acquisition and payment of

Compensation                                                  -           N412,500,000.00

(ii)                Acquisition development and

management of landed properties                      -           N112,500,000.00

(iii)               Payment of outstanding debts on

Sundry projects                                                -           N607,875,000.00

(iv)              Provision of infrastructural facilities to

Government Estates                                          -           N75,000,000.00

(v)                Development of Model Estate GRA II

Ado-Ekiti                                                         -           N165,000,000.00

(vi)              Cadastral Survey of all Local Government         -           N9,000,000.00

(vii)             Institutional Survey                                            -           N18,000,000.00

(viii)           Construction of motor parks in Ado                  -           N100,000,000.00

(ix)              Construction of  toilets in market places

in the State                                                       -           N96,000,000.00

(x)                Biodiversity conversation/urban trees

planting and beautification of urban

centre statewide                                                -           N75,000,000.00

(xi)              Feasibility  studies of ecologically

devastated areas                                               -           N142,500,000.00

(xii)             Channelization/canalization projects

In collaboration with Federal Government         -           N509,000,000.00

(xiii)           Outstanding indebtedness on ecological

projects                                                            -           N100,000,000.00

(xiv)           Waste to wealth PPP counterpart funding          -           N376,000,000.00

(xv)            Purchase of relief materials/seedlings

for mass distribution (wind brakes)

Acacia, mangos, tick etc                                   -           N9,000,000.00

4.         GENERAL ADMINISTRATION SECTOR

            Distinguish pressmen, ladies and gentlemen, having identified the preceding three sectors through which the government channels its expenditure, it would be out of place to say that government can accomplish most of its numerous activities without a central administrative organ, which serves as the engine room where the other sectors are co-coordinated. To this end, a total sum of N9,267,764,900.00 has been allocated to the General Administration Sector, which represents 15.56% of the total capital budget. It equally depicts 6.18% over and above the sum of N8,728,513,978.00 approved for this sector in 2008.

            The following are the major projects under the General Administration Sector in the year 2009 budget.

(i)                  Construction of Deputy Governor’s

office and office behind the Deputy

Governor’s office, Ado-Ekiti                             -           N150,000,000.00

(ii)                Construction/Renovation of Liaison

office and Governor’s Lodge, Lagos

and Abuja                                                        -           N90,000,000.00

(iii)               Construction and renovations in

Government House                                           -           N150,000,000.00

(iv)              Construction of Secretariat

building (Phase V)                                            -           N600,000,000.00

(v)                Construction of fence, gate houses

and entrances gate around governor’s

office and government house                             -           N262,500,000.00

(vi)              Purchase of vehicles for MDAs             -           N500,000,000.00

(vii)             Central purchase of office furniture

and equipment                                                  -           N187,500,000.00

(viii)           Procurement of helmets                         -           N270,000,000.00

(ix)              Insurance of government assets             -           N562,500,000.00

Gentlemen of the press, let me remark that this government has a high premium for both Judicial and Legislative arms of government. It is in the light of this that the two arms of government were granted fiscal autonomy. Towards this end, the legislative and Judicial arms will receive N1,825,000,000.00 and N905,500,000.00 respectively for their capital projects in this fiscal year.

The following are some of the projects lined up for execution in the 2009 capital budget for the two arms of government.

(a)          JUDICIAL

(i)         Construction of Magistrate courts                      -          N75,000,000.00

            (ii)        Renovation of the high court building

in Ado-Ekiti                                                      -          N 15,000,000.00

(iii)               Renovation of high court buildings

in other Judicial divisions                                    -          N 55,000,000.00

(iv)              Building of new high court headquarters             -          N350,000,000.00

(v)                Renovation of magistrate courts at 19

magisterial districts                                            -           N 90,000,000.00

(vi)              Sinking of bore-holes in all judiciary

division                                                             -          N  30,000,000.00

(vii)      Purchase of vehicles                                          -          N  50,000,000.00

  (ix)       Purchase of Law books                                    -           N  30,000,000.00         

(b)        HOUSE OF ASSEMBLY

1. Digital recording equipment                                           - N25,000,000.00
2. Provision of press-machine                                           - N 10,000,000.00
3. Construction of new House of Assembly                       -N400,000,000.00
4. Purchase of IT Facilities                                                - N 50,000,000.00
5. Construction of Deputy Speaker’s House                      - N20,000,000.00
6. Purchase of office equipment, furniture

Computer etc                                                             - N425,000,000.00

7. Fuel Dump                                                                   - N  50,000,000.00
8. Purchase of vehicles and motorcycles                           - N250,000,000.00
9. Constituency projects for Honourable members            - N520,000,000.00

CONCLUSION

            Gentlemen of the press, I have just given the detailed analysis of programmes of this government in the year 2009 budget christened ‘BUDGET OF CONSOLIDATION’ This budget as I have stated, is set to satisfy the collective yearnings of the good people of Ekiti State. In order to admire the lofty objectives of the budget, the government will require the co-operation of all and sundry. Consequently, I will use this medium to enjoin all members of the public especially citizens of Ekiti at home and abroad to join hands with the present administration most importantly at this particular critical period to move the state forward.

To you Gentlemen of the press, it is my hope that you will join hands with government to educate and inform the people of the state adequately on the efforts of this government to better their lot.

            On this note, Ladies and Gentlemen, I wish to thank you once again for your patience and to invite your questions, comments and observations on the year 2009 budget analysis just presented to you.

            May God bless you all.

BUNMI FAMOSAYA, mni

Permanent Secretary

Ministry of Finance and Economic Development,

Ado-Ekiti

31^st March, 2009.