By Tony Edike
ENUGU—ENUGU State government, yesterday, presented a budget of N66.4 billion for its activities in year 2011 to the state House of Assembly for approval.

Presenting the budget estimate which is lower than the 2010 budget of N68.36 billion by N1.9 billion (a decrease of 2.8%), Governor Sullivan Chime announced a Christmas bonus of one month basic salary to workers in the state.

The governor explained that the decrease in next year’s budget was necessitated by the realities of the times with respect to revenue inflow from all sources.

Giving details of the estimate, the governor said a total sum of N40.1billion, representing 60.4%, was for recurrent expenditure, while N26.32 billion, representing 39.6% was for capital expenditure.

According to him, a recurrent revenue of N42.1 billion is expected next year and the government intends to realize the amount through aggressive internally- generated revenue, which is estimated at N7.314 billion, representing 17.4% as well as the state’s share of federal revenue, estimated at N28.792 billion, representing 68.3% and value added tax, estimated at N6.025 billion, representing 14.3%.

The budget also showed an estimated recurrent expenditure of N40,114,206,596, out of which  N32,514,206,596, representing 81% , had been set aside for personnel costs, including consolidated revenue fund charges.

However,  a total of N4,600,000,000, representing 11.5% is for overhead cost, while a provision of N3,000,000,000 which is 7.5%, had been made as  subvention to parastatals and tertiary institutions.

The rise in recurrent expenditure over that of 2010, he explained, is as a result of expected wage bill increase to workers.

The sum of N26.3 billion which is 39.6% of the budget size is appropriated for capital expenditure in the coming year with the governor promising that the government would continue with its aggressive infrastructural development programme to improve the living condition of the people.