… N5.71bn for capital expenditure

…Recurrent expenditure N4.37bn

By Chris Ochayi

The Chairman of Abuja Municipal Area Council, AMAC, Hon. Abdullahi Candido, has presented a budget proposal of N10, 087,228, 268.00 billion for the 2021 fiscal year.

Hon. Candido, while presenting the budget at the council’s legislative chambers in Abuja, said the year’s budget represented a nominal increase of 10.94% above the previous year estimates of N8 billion.

Tagged “Budget of Resilience’, Hon. Candido said the 2021 budget was aimed at bringing to the doorstep of every resident of the council, the dividends of democracy.

He said despite the setbacks experienced by the council in 2020 due to the Covid-19 pandemic, his administration was committed to rural transformation.

READ ALSO: EFCC wants special anti-corruption courts for speedy trials

He said the budget estimate was expected to be funded from Net Statutory Allocation N6,297,228,268.00, AMAC IGR N3,300,000,000.00, 10% FCT IGR, N1,589,000,000.00,  and TERM LOAN, N500,000,000, respectively.

The AMAC boss added that the proposed N10, 087,228, 268.00 billion was apportioned according to the budget formula with recurrent expenditure gulping N,370,871,037.00 representing 43.33 percent and Capital expenditure of N5,716,357,232.00, representing 56.67 percent.

Candido, who further gave breakdown of the budget, said, the 48.48 percent of the recurrent expenditure is future apportioned with personnel cost N2,757,765,439.00 and overhead cost N1,462,500,000.00.

On the capital project, a total sum of N3,675,594,361.00 was allocated for ongoing projects, N1,525,762,871.00 for new projects while N315,000,000.00 goes into debt services.

He said the personnel cost was projected to rise by 4.3 percent in 2021, explaining that the increase is as a result of expected staff promotion and proposed minimum wage increase as well as areas.

The chairman explained that the budget adopted the zero based budgeting approach, which is a product of collaborative effort of relevant stakeholders, including the legislative, executive and all departments of the council.

Candido added that the increase in personnel cost is as a result of expected staff promotion and proposed minimum wage increase as well as minimum wage arrears.

On Capital expenditure, he added that the thrust of AMAC capital projects in 2021 will be completion of many on-going projects rather than starting new ones.

The Speaker of the AMAC legislative council, Hon. Abubakar Baushe, commended the chairman and promised to act accordingly on the proposed budget.

He said the budget will receive adequate attention of the legislators to ensure its speedy passage for the interest of the Abuja Municipal Area Council and benefit of the residents.

Vanguard News Nigeria

Disclaimer

Comments expressed here do not reflect the opinions of vanguard newspapers or any employee thereof.