The Gombe State Executive Council has approved the sum of 116 billion naira as 2021 budget estimate for onward transmission to the State House of Assembly for consideration and passage into law.
Briefing newsmen on the outcome of the meeting, the State Commissioner of Finance and Economic Development, Malam Muhammad Gambo Magaji disclosed that N58.5 billion is for capital expenditure while N57.8 billion is for recurrent expenditure, which is 17 per cent higher than the 2020 revised budget.
He said sectoral allocation of the budget shows the administrative sector has 3.1 billion, the economic sector 34 billion, law and Justice 1.3 billion and the social sector 58 billion representing the capital expenditures while the recurrent expenditure has personnel cost at 22.7 billion, overhead cost 15.7 billion, pension and gratuity 4.1 billion, statutory office holders salaries 168 million, public debt charges 14.7 billion representing 57.5 billion for recurrent.
The Finance commissioner said the over 116 billion naira proposed 2021 budget estimate is 7.5 percent higher than the revised 2020 budget which stood at 107 billion six hundred and nine million and eight thousand five hundred and ninety three fifty eight kobo.
“Out of the N55.24 billion approved for recurrent expenditure for 2020, N39.37billion has been spent between January and October, representing 71.2 per cent performance on the budget while from N52.37 billion total capital budget for 2020, N26.06 billion has been spent representing 44.8 per cent performance as at October”.
He said the budget deficit for the 2021 estimate is put at five billion two hundred and six million three hundred and thirty six zero kobo representing 4.4 percent of the entire budget size.
The Commissioner said the budget deficit will be financed through internal and external borrowings whereas external borrowing will be 3.5 billion representing 3 percent of the total budget size while internal borrowing is put at 4 billion.
Malam Gambo Magaji said the Mid term Expenditure Framework MTEF alongside the fiscal strategy paper have already been submitted to the State House of Assembly, expressing the confidence that the budget will be laid before the house of assembly by the Gombe State Governor effective next week.
Answering questions from journalists, the Gombe State Commissioner of Information, Hon. Ibrahim Alhassan Kwami said the budget estimate is built on submissions made by stakeholders at the second edition of stakeholders consultative meeting on 2021 budget preparation, adding that it reflects the yearnings and aspirations of the people.