A’Ibom 2022 budget: Policy Alert decries recurrent expenditure

Ini Billie, Uyo

Budget analysis expert, Policy Alert has decried the allocation of almost 40 per cent of recurrent expenditure in the 2022 Akwa Ibom State Appropriation Bill.

The Executive Director of Policy Alert, Mr Tijah Boltan-Akpan, said during an interaction on Wednesday in Uyo that less funds were allocated to the health and educational sectors.

Akpan added that the 2022 budget provides 28.97 and 10.5 per cent for the Office of the Accountant General and the Government House in the whole recurrent expenditure, which stands at N102.66 billion, nearly 40 per cent of the recurrent outlay.

According to him, N11.06 billion and N7.65 billion were appropriated for Health and Education sectors respectively, noting that the cost of governance, public debt services and contract liabilities were high.

He said: “In exception of Hospital Management Board, Akwa Ibom State House of Assembly, AKSU, and AKS Judiciary in the top biggest spenders in the recurrent expenditure for 2022, we find the Office of the Accountant General drawing 28.97% and Government House drawing 10.5% of the entire recurrent expenditure in 2022.

“These two offices gulps (N102.66bn) nearly 40% of recurrent expenditure in 2022. We frown at the high cost of governance as reflected in the Government House recurrent Budget. In 2021, N22.83bn was budgeted for both personnel and overhead costs, as at the 3rd quarter of 2021 43.01 per cent (N9.82bn) was implemented.

“We are also bothered with the spike in the recurrent budget allocated (N50bn) for public debt service, contract liabilities, and contributions in the Office of the Accountant General in 2022. In 2021, N68.7bn was budgeted for public debt service while N45.69bn (66.51%) was actually paid as of the end of September 2021 by the Office of the Accountant General.

“Looking at what was released for the 2021 budget repayment for internal bank loans was N22bn in the original approved 2021 budget before it was reviewed upwards to N42bn in October 2021. N3.08bn, 2.62bn, and N23.63 were actual releases made for the repayment of loans in the 1st, 2nd, and 3rd quarters of 2021 respectively.

“While interest on internal bank loans increased from N13bn in the original budget to N16bn in the reviewed budget. N3,33bn, N2.77bn and N5.26bn were released for the 1st, 2nd, and 3rd quarters of 2021 respectively.

“We are also surprised to see the Akwa Ibom State Budget Office drawing 5.93% of the entire recurrent expenditure budget, making the top 3 in the recurrent expenditure budget (N15.44bn) for 2022.  N4.38bn, N3.38bn, and N4.65bn were recurrent expenditure for Akwa Ibom State Budget Office in 2019, 2020 and 2021 respectively.

“The 69.87% increase in 2022 recurrent expenditure for the Akwa Ibom State deserved to be queried. The Budget Office should explain to this August Assembly why its recurrent expenditure increased from N4.65bn in 2021 to N15.44bn in 2022.”

Akpan also decried the allocation of N2.5 billion on the already commissioned 21 Storey building, noting that out of N3.15 billion budgeted for the Ministry of Youth and Sports in 2021, only N219 million was released as of September ending from a total capital expenditure budget of N1.52 billion.

He pointed out that N5 billion was earmarked for servicing the state’s aircraft and recalled that N6 billion was budgeted for the same purpose in 2021, while it had 100 per cent budget implementation in 2019.

He mentioned that N5 billion was budgeted for the construction of the International Worship Centre after N6.75 billion was budgeted for it in 2021.