2011 Budget Presented to The House of Assembly

2011

BUDGET SPEECH

DELIVERED BY

H.E. DR JOHN OLUKAYODE FAYEMI

GOVERNOR OF EKITI STATE, NIGERIA

TO THE

STATE HOUSE OF ASSEMBLY

MONDAY, 20TH DECEMBER, 2010

The Right Honourable Speaker,

The Honourable Deputy Speaker,

Honourable Members of the House,

The Clerk of the State House of Assembly,

Top Government Officials,

Gentlemen of the Press,

Ladies and Gentlemen

I am highly delighted to stand before this Honourable House to present my maiden budget speech which I have tagged ‘Budget of Renewal’.

As I stated during my inauguration and swearing in on October 16, 2010, “the good people of Ekiti State own this government, and I will respect the opinions and aspirations of everybody irrespective of their affiliations”. It is therefore noteworthy that we have consulted widely in ensuring the input of all stakeholders in arriving at a budget that reflects our collective aspirations for accelerated development across all sectors of the economy. Our competent technocrats across the various MDAs have worked with the Governor’s Office to prepare a budget that every citizen of our great state, can have a sense of ownership of, and work with the government in ensuring its actualization.

Today I stand before you distinguished ladies and gentlemen, to present the 2011 budget, which has been prepared with the strategic underpinning of the 8 (Eight) Point Agenda of this administration as follows:

Democratization of Governance

Improvement on Infrastructure

Modernization of Agriculture

Education and Human Capital Development

Provision of Free Health Services and Social Security to the disadvantaged sectors of our dear state

Stimulation of Industrial Development

Promotion of Tourism and Environmental Sustainability

Promotion of Gender Equality and Women’s Empowerment

As you are very much aware, my fellow compatriots, the Budget is the most effective instrument for formulation, implementation and control of government activities. By extension, it is a means by which resources available to government within a financial year, are estimated and allocated to socially productive and preferred sectors of the economy for the incoming year. A well-planned Budget is an instrument of economic policy, an instrument of accountability and a management tool. It is not only a control mechanism, but also a guide to the management of men and materials. It ensures financial discipline and curtails unnecessary expenditure. As an instrument of economic policy, the budget indicates the direction of the economy and expresses intentions regarding the utilization of resources through allocation amongst the various sectors. The

budget therefore plays an effective role in ensuring that government remains focused on its commitment to set goals.

The role of this distinguished House therefore, is to examine the draft budget and in the process, further articulate the needs of the electorate and appropriate public funds for the realization of the collective objectives of government. This crucial function is strategic and cannot be wished away. Every careful step has therefore been taken, to ensure all provisions of the law are strictly adhered to in the preparation of the 2011 Budget - ‘Budget of Renewal, which is being presented to the Honourable House for appropriation.

REVIEW OF THE 2010 BUDGET Mr. Speaker and distinguished Honourable members, may I briefly review the performance of the 2010 Budget, before I proceed to highlight the proposed 2011 budget. As you would recall, the size of the Approved 2010 Budget was N69,930,495,705.10 (Sixty Nine Billion, Nine Hundred and Thirty Million, Four Hundred and Ninety Five Thousand and Ten Kobo). This comprised of N31,910,855,675.00 (Thirty One Billion, Nine Hundred and Ten Million, Eight Hundred and Fifty Thousand, Six Hundred and Seventy Five Naira) recurrent expenditure, and capital expenditure of N38,019,640,030.10 (Thirty Eight Billion, Nineteen Million, Six Hundred and Forty Thousand, Thirty Naira and Ten Kobo). This administration however revised the budget to a sum of N65,908,372,735.79 (Sixty Five Billion, Nine Hundred and Eight Million, Three Hundred and Seventy Two Thousand, Seven Hundred and Thirty Five Naira and Seventy Nine Kobo). This is made up of N35,211,844,700.17 (Thirty Five Billion, Two Hundred and Eleven Million, Eight Hundred and Forty Four Thousand, Seven Hundred Naira and Seventeen Kobo) or 53.43% recurrent and N30,696,528,035.62 (Thirty Billion, Six Hundred and Ninety Six Million, Five Hundred and Twenty Eight Thousand, Thirty Five Naira and Sixty Two Kobo) or 46.57% capital expenditure. It is hoped that the House shall pass into law the revised budget in due course.

PERFORMANCE 2010 REVENUE The performance of the 2010 revenue budget as at October 31, 2010 is shown in the table below:-

TABLE 1: SHOWING 2010 REVENUE PERFORMANCE

S/N DETAILS APPROVED

BUDGET

2010 (N)

PROPORTIONAL REVENUE (N)

JAN – OCT.

2010

ACTUAL REVENUE (N)

JAN-OCT.

2010

% PERFOR-MANCE

(i) Federal Allocation

22,169,269,292.71

18,474,391,077.26 16,811,687,288.56 91.00%

(ii) IGR MDAs 5,964,993,629.16 4,970,828,024.30

2,684,121,461.84 54.00

(iii) VAT 6,000,000,000.00 5,000,000,000.00 4,499,654,617.67 89.99

(iv) Draw Down on External Grants

3,000,000,000.00 2,500,000,000.00 1,746,453,194.10 69.86

(v) MDG Conditional Grant Scheme

1,000,000,000.00

833,333,333.33 500,000,000.00 60.00%

(vi) Internal Loans/Bond

10,815,745,166.35 9,013,120,971.96 7,250,000,000.00 80.44

(vii) Grants from Federal Gov.(Reimbursement on

2,500,000,000.00

2,083,333,333.33

2,000,000,000.00

96.00%

Road Dualization)

(viii) Ecological Fund

600,000,000.00 500,000,000.00

- -

(ix) Staff Revolving Loan Scheme

1,300,000,000.00 1,083,333,333.33 - -

(x) FAAC Augmentation (or excess Crude oil)

7,838,376,200.00 6,531,980,166.67 6,237,279,384.91 95.49%

(xi) Other Sundry Incomes including exchange rate gain

4,719,988,447.48

3,933,323,706.23 1,985,086,302.70 50.47

Grand Total

N65,908,372,735.79

N54,923,643,946.49

N43,971,806,909.28

80.06%

The total expected revenue as at October 31, 2010 was N54,923,643,946.40 (Fifty Four Billion, Nine Hundred and Twenty Three Million, Six Hundred and Forty Three Thousand, Nine Hundred and Forty Six Naira and Forty Kobo) while the actual revenue in the period under review was N43,971,806,909.28 (Forty Three Billion, Nine Hundred and Seventy One Million, Eight Hundred and Six Thousand, Nine Hundred and Nine Naira and Twenty Eight Kobo). This represents 80.05% performance. Ordinarily the performance may look credible but one should not loose sight of two variables i.e. the Internally Generated Revenue and loan components of the total revenue. For example, the Total IGR of the State between January and October, 2010 was N2,684,121,461.84 and this represents only 6.1% of the total revenue. Though this may appear alarming, we are not deterred.

This administration shall adopt all lawful measures to address this situation in the next fiscal year.

It is also on record that the immediate past government took a loan of N7,250,000,000.00 (Seven Billion, Two Hundred and Fifty Million Naira Only) in the period under review. This represents 17.06% of the total revenue. This is disturbing, considering the paucity of tangible impact this debt has made on the lives and circumstances of our people. Instead, this administration is encumbered with total inherited debt of over N40billion, with over N300million deducted monthly at source from the State Allocations to service the various loan facilities.

On the issue of external sources such as Federal Allocation, VAT and Excess-Crude, though the State recorded good percentage performance but the actual release is not enough for this administration to execute projects that we have in the pipeline. For example, this administration is desirous to embark on empowerment programmes, free and qualitative health programmes, free education up to secondary schools and other projects that will effectively banish poverty from the land. In view of the foregoing, it may become imperative, for the Federal Government to review the current revenue allocation formula, to ensure increase in the revenue accruable to States from the Federation account. However, as stated earlier, it is our collective burden to ensure Internally Generated Revenue is considerably increased through the stimulation of economic activities in our dear state in the year 2011, and our vision is to increase the percentage share of IGR in our total revenue by at least 20%.

EXPENDITURE REVIEW

The Table II below shows the expenditure performance of the 2010 approved

budget as at October 31, 2010:

TABLE II SHOWING THE 2010 EXPENDITURE PERFORMANCE

S/N

DETAILS APPROVED BUDGET (N)

2010

PROPORTIONAL REVENUE (N)

JAN-OCT.

2010

ACTUAL EXPENDITURE (N)

JAN-OCT.

2010

%

PERFOR-

MANCE

A. RECURRENT

EXPENDITURE

(i) Personnel Cost 5,732,582,719.00 4,777,152,265.83 4,334,026,666.35 90.72

(ii) Other Charges 3,131,775,000.00 2,609,812,500.00 1,884,361,482.86 72.20

(iii) Recurrent Grants 12,459,124,184.29 10,382,603,486.90 8,760,395,962.72 84.37

(iv) Consolidated Revenue Fund Charges

8,708,129,153.48 7,256,774,294.56 6,776,493,389.68 93.38

(v) Transfer to Other

Funds

5,180,233,643.50 4,316,861,369.58 2,860,776,266.56 66.26

Sub-Total

35,211,844,700.27 29,343,203,916.66 24,616,053,768.17 83.89

B. CAPITAL EXPENDITURE

(i) Economic Sector 14,367,609,940.00 11,973,008,283.33 5,922,319,589.36 49.46

(ii) Social Services

Sector

6,424,170,000.00 5,353,475,000.00 1,651,255,016.28 30.84

(iii) Environmental

Sector

1,553,500,000.00 1,294,583,333.33 562,121,271.75 43.42

(iv) Administration 8,351,248,095.62 6,959,373,413.01 1,820,456,122.34 26.15

Sub-Total

30,696,528,035.62 25,580,440,029.68 9,956,151,999.73 38.92

GRAND TOTAL N65,908,372,735.

89

N54,923,643,946.

57

N34,572,205,767.

90

62.94

Distinguished Honourable Members, as at the end of October, 2010, a total sum of N34,572,205,767.90 (Thirty Four Billion, Five Hundred and Seventy Two Million, Two Hundred and Five Thousand, Seven Hundred and Sixty Seven Naira and Ninety Kobo) had been expended on both the recurrent and capital expenditure representing 62.94% performance. N24,616,053,768.17 (Twenty Four Billion, Six Hundred and Sixteen Million, Fifty Three Thousand, Seven Hundred and Sixty Eight Naira and Seventeen Kobo), was spent on Recurrent Expenditure while N9,956,151,999.73 (Nine Billion, Nine Hundred and Fifty Six Million, One Hundred and Fifty One Thousand and Seventy Three Kobo) was spent on capital expenditure. The recurrent expenditure consists of personnel and over-head costs of Ministries, Departments and Agencies. The Honourable Commissioner for Finance and Economic Development will give a detailed breakdown of the recurrent and capital expenditures as soon as the budget is approved by this Honourable House.

THE 2011 BUDGET

The focus of the 2011 budget is to review the on-going capital projects, identify those that are of benefit to the good people of the State and add new ones which are in-line with the 8 Point Agenda of this administration. Let me emphasize here that this government is not interested in abandoning the on-going capital projects in view of the resources already committed on them. But we owe it a duty, to spend the resources of the State frugally. In this light, this administration will not hesitate to discontinue any white elephant projects that will constitute further drain to the lean resources of the State. We shall ensure that we bring our policy of providing sustainable jobs for our young school leavers and also stick conscientiously to the tenets of free health and free education of my party – the Action Congress of Nigeria (ACN).

OBJECTIVES OF THE 2011 BUDGET

Based on the foregoing, the policy thrusts of the 2011 budget, includes but are not limited to the following:

(i) A concerted effort at improving the revenue base through expansion of the State revenue net;

(ii) A general reduction in the poverty level of the citizenry through the provision of a conducive environment for job creation, youths and women empowerment;

(iii) A widening of the economic base through the promotion of various economic activities and support for small and medium scales enterprises;

(iv) Provision of employment for our young school graduates and the promotion of the culture of enterprise.

(v) A continued improvement of the educational sector by strengthening the inspectorate arm and capacity building of our teachers at all levels;

(vi) Enhancement of the quality of the health of our people through the free health services;

(vii) Continued development of a more dedicated, motivated and disciplined public service for enhanced productivity;

(viii) Continued maintenance of a conducive environment that will promote private investment and public private partnership (PPP);

(ix) The continued maintenance of industrial peace and socio-political harmony;

(x) A deliberate curtailment of extra-budgetary spending to ensure budget discipline and a proper monitoring of income and expenditure of government to ensure transparency;

(xi) A strict adherence to the rule of law, justice, equity and fairness for all and;

(xii) The pursuit of excellence in sports and cultural development. REVENUE PROJECTIONS

The size of the year 2011 budget is N74,204,114,550.00. The expected revenue shall accrue from the following sources:

Statutory Allocation N24,000,000,000.00 32.09%

VAT N5,000,000,000.00 6.69%

FAAC Augmentation N6,000,000,000.00 8.02%

Internally Generated Revenue

(Including Parastatals, Community

Development and Signage Agency)

N10,615,350,000.00 14.20%

External Grants (Draw Down) N3,000,000,000.00 4.01%

MDG Conditional Grants N1,000,000,000.00 1.34%

Reimbursement from Federal

Government on Roads N2,000,000,000.00 2.67%

Internal Loans/Bonds N19,000,000,000.00 25.41%

Ecological Funds N1,000,000,000.00 1.34%

Sundry Income N3,163,764,550.00 4.23%

Total N74,779,114,550.00 100%

RECURRENT EXPENDITURE A total sum of N34,041,109,061.39 (Thirty-Four Billion, Forty-One Million, One Hundred and Nine Thousand, Sixty-One Naira, Thirty Nine Kobo) has been earmarked for the recurrent expenditure of government in the next fiscal year. This

represents 45.52% of the total budget. With this, government expects to meet the following obligations:

(i) Personnel Cost N6,550,000,000.00 8.76%

(ii) Other Charges N2,702,975,000.00 3.61%

(iii) Recurrent Grants to Parastatals and Tertiary

institutions N12,404,399,061.39 16.59%

(ii) Transfer to Other Fund N 5,086,000,000.00 6.80% (ii) Consolidated Revenue Fund Charges N7,297,735,000.00 9.76%

Total Recurrent Expenditure N 34,041,109,061.39 45.52%

This government shall continue to support the welfare of its workers. I am of the school of thought that Ekiti public servants deserve a living wage. May I use this forum to express my gratitude to the Labour Leadership, and the entire workforce of Ekiti State, for their understanding and cooperation with this new government; I look forward to more robust engagements with this critical stakeholder group with a view to advancing the interest of our State’s development. As a gesture of our commitment to the workforce, we intend re-introducing the cancelled loan scheme in the interest of our workforce. Let me also mention that this administration shall pursue the welfare of all its public servants, while training and re-training of the workforce shall also be accorded a high priority. The welfare of the retired workers shall also continue to receive adequate attention of this government. A sum of N1,850,000,000.00 (One Billion, Eight Hundred and Fifty Million Naira) has been set aside in the 2011 budget for payment of pension and gratuity. Our aim is to build a motivated and efficient workforce. To this end, we have developed a comprehensive Civil Service Transformation Strategy. An Office of Transformation will be opened in the Governor’s Office to be headed by a Director-General. The office will have oversight responsibilities for project monitoring and evaluation, governance reforms, management services and special projects as may arise from time to time.

I want to recognize the roles and contributions of our past political leaders in the State. This government shall continue to accord them necessary recognition, consequent upon this, this administration shall pay all the outstanding entitlements of our past political office holders irrespective of their political affiliations. To this end, a sum of N120,000,000.00 (One Hundred and Twenty Million Naira) has been set aside in the 2011 recurrent budget for the payment of outstanding entitlements of all past political office holders in the State. What I need from you is absolute cooperation and prayers so that Ekiti State shall rank among the best States in the Country. Indeed, on our part, we want to assure you that the labours of our heroes past, in building a great state shall not be in vain. CAPITAL EXPENDITURE Right Honorable Speaker and Distinguished Honourable Members, the main focus of this administration in the next fiscal year is to liberate our people from the clutches of poverty, ignorance and disease by continuously putting in place necessary structures aimed at improving their lot. In doing this, our programmes shall be targeted at the emancipation of the rural dwellers by driving development at the grassroots in order to make positive impact on their collective and individual lives. Such activities include the provision of water, rural electrification and rural roads. We shall also provide the enabling environment that will attract investors. Our youths and women folk shall also be empowered. The Free Education and Health programmes shall be vigorously pursued. It is in this regard that we are proposing a total sum of N40,738,005,488.61 (Forty Billion, Seven Hundred and Thirty Eight Million, Five Thousand, Four Hundred and Eighty Eight Naira and Sixty One Kobo) for 2011 capital projects. This amount is distributed across sectors as follows: i. ECONOMIC SECTOR

Agriculture and Rural Development N3,744,600,000.00 9.19% SMEs & poverty Reduction N3,511,700,000.00 8.62% Infrastructure N12,183,000,000.00 29.91 Sub-Total Economic Sector

N19,439,300,000.00 47.72%

ii SOCIAL SECTOR

Education N3,808,500,000.00 9.35% Health N2,738,480,000.00 6.72% Information and

Social Development N1,213,000,000.00 3.60% Sub-Total: Social Services Sector

N9,434,980,000.00 22.68%

iii ENVIRONMENTAL DEVELOPMENT SECTOR

Town and Country Planning N2,775,000,000.00 6.81% Sewage and Drainage N130,000,000.00 0.32% Emergency and Waste Management N172,000,000.00

0.42% Sub-Total: Environmental Sector N3,077,000,000.00 7.55% iv. Sub-Total Administrative Sector

N8,786,725,488.61 21.57%

GRAND TOTAL N40,738,005,488.61 100%

ECONOMIC SECTOR

(a) Agriculture and Rural Development

Without doubt, Agriculture remains the mainstay of our economy. It constitutes our major strength and therefore requires serious attention. Studies have shown that all crops grown in Nigeria can be grown in Ekiti, while there is abundant land space for rearing of livestock. The following key agricultural projects shall receive Government attention in the next fiscal year:

I. Purchase of Tractors/Heavy equipment N45,000,000.00

II. Opening up of more lands for Land Cultivation N30,000,000.00

III. Produce N21,000,000.00

IV. Tree Crops N14,000,000.00

V. Livestock N14,000,000.00

VI. Fisheries N26,500,000.00

VII. Veterinary Services N28,700,000.00

VIII. Forestry Matters N153,600,000.00

IX. Fountain Inputs and Marketing Agency N17,700,000.00

X. School of Agriculture N250,000,000.00

To further improve Agriculture viability in the State, a total sum of N3,744,600,000.00 (Three Billion, Seven Hundred and Forty Four Million, Six Hundred Thousand Naira) will be spent on capital projects in Agriculture and Rural Development in year 2011. This represents 9.19% of the total capital budget. The Agricultural Development Project (ADP) has remained very important and relevant in the area of agricultural extension services in the rural areas. It is in support of this that government is channeling a sum of N260,000,000.00 (Two Hundred and Sixty Million Naira) for ADP Capital/FADAMA III projects in addition to the proposed subvention of N170,000,000.00 (One Hundred and Seventy Million Naira). Our desire is to develop the rural areas so as to strengthen the industrial and economic base of the State. To this effect a sum of N545,000,000.00 (Five Hundred and Forty Five Million Naira) has also been provided in the 2011 estimate for the execution of key capital projects in the rural areas. This Government has also earmarked a some of N2,000,000,000.00 (Two Billion Naira) only, for stimulating the accelerated growth of the Agro Allied industry. (b) Commerce and Industry

The present administration shall provide an enabling environment that would promote micro, small, and medium scale industries in the State. Consequently, the sum of N550,000,000.00 (Five Hundred and Fifty Million Naira) following key

projects shall be set aside as counterpart contribution for industrial development, and empowerment of SME Operators. Ekiti Investment Holding Company

In line with this administration’s objective of streamlining the administrative structures of our institutions, in order to minimize running costs and the duplication of efforts, this administration would establish a Holding Company, to manage the State Government’s Investments. This special purpose vehicle will have the mandate to harmonize the investments of the State Government under one roof, while taking advantage of investment windows in the capital market, real estate, extractive industry and other investment vehicles. Therefore, the sum of N1,912,000,000.00 (One Billion, Nine Hundred and Twelve Million Naira) has been earmarked for the Investment Holding Company.

(c) Tourism Development

Mr. Speaker, Distinguished Honorable Members, Ladies and Gentlemen, Tourism remains the worlds largest and fastest growing industry that if properly managed, has the potential to alleviate poverty and protect our natural resources. Consequently, we have set aside a sum of N167,000,000.00 (One Hundred and Sixty Seven Million Naira) in the 2011 Budget for Tourism projects in the State. Out of this, a sum of N100,000,000.00 (One Hundred Million Naira) is for the re-development of Ikogosi Resort Centre, and another N25,000,000.00 (Twenty Five Million Naira) for the development of other tourist centers in the State. The State is also making arrangements for the construction of linkage road between Ikogosi-Ipole Iloro via Efon Alaaye. This is to give road accessibility to the Tourist Centres. It is also the intention of this Government, to provide a State Museum, Library, and Arts Gallery, all of world class standard in the State Capital. (d) Infrastructural Development Right Honorable Speaker and Honourable Members, this administration places high premium on infrastructural development, therefore, a sum of N12,183,000,000.00 (Twelve Billion, One Hundred and Eighty Three Million Naira) or 29.91% of the total Capital Budget has been earmarked for infrastructure in the 2011 proposed budget.

The following sub-sectors shall be given adequate attention in the 2011 budget: (i) Road Projects A total sum of N7,379,000,000.00 (Seven Billion, Three Hundred and

Seventy Nine Million Naira) has been earmarked in the 2011 budget for the completion of all on-going road projects and other few new ones that shall be constructed in the coming year.

This represents 18.37% of the total capital budget. The details of the road

projects and their cost implications will be given by the Honourable Commissioner for Finance and Economic Development during the presentation of the budget analysis.

(ii) Public Transportation The sum of N367,000,000.00 (Three Hundred and Sixty Seven Million

Naira) has been allocated to the Department of Public Transportation for the year 2011. Out of which N250,000,000.00 (Two Hundred Million Naira) represents our counterpart contribution for the procurement of new Buses and Taxes for public transportation in the state.

(iii) Direct Labour Agency As part of our commitment to ensure the efficient utilization of scarce

resources and also a way of providing employment for the teeming populace, this administration proposes to transform EKROMA to a Direct Labour Agency with the mandate to carry out vital infrastructural interventions within the state in order to ensure local content, employment generation and the increased patronage of local contractors and artisans. A sum of N403,000,000.00 (Four Hundred and Three Million Naira) has been set aside in the 2011 budget for this purpose. Mr. Speaker Sir, let me also state here that provisions have been made in the 2011 capital budget for the under-listed infrastructural projects:

(iv) Electricity Board N1,000,000,000.00 (One Billion Naira) is for various electricity projects in the

State. Out of which a sum of N200,000,000.00 (Two Hundred Million Naira) is for the completion of all on-going electrification project, and another N130,000,000.00 (One Hundred and Thirty Million Naira) for new rural electrification projects.

We have also set aside N500,000,000.00 (Five Hundred Million Naira) for

the purchase and installation of transformers, while we have also earmarked N50,000,000.00 (Fifty Million Naira) to assist PHCN in its operation.

(v) Information Technology In our quest to institute a technologically driven workforce that would be

more effective in responding to the needs of the people, a sum of N260,000,000.00 (Two Hundred and Sixty Million Naira) has been budgeted for the Department of Information Technology. The funds shall be used for wide area network of Ministries and identity management as well as E-payment solutions (E-Governance).

(vi) Water, Sanitation and Hygiene Water as the saying goes is life! The linkage between the availability of potable

water and the health of the citizenry has been concretely established. It is our responsibility to ensure this God-given gift is made available across the nooks and crannies of the state. To this end, a total sum of N1,277,000,000.00 (One Billion, Two Hundred and Seventy Seven Million Naira) has been set aside in the 2011 capital budget for water supply, sanitation and hygiene. The concession of water supply by the immediate past government, shall be reviewed, in view of its inability to produce desirable results, leading to widespread public condemnation of the policy.

(vii) Housing Development According to the United Nations Charter on Human Rights, every human

being has the right to decent shelter. The people of Ekiti State should not be meted out any less than they deserve. This Administration has set aside a sum

of N1,000,000,000.00 (One Billion Naira) as Special Fund for Housing projects in the next fiscal year.

SOCIAL SERVICE SECTOR

One of the cardinal programmes of this new administration is largely the provision of social services for the generality of our people in Ekiti State.

This explains why this sector is receiving good capital allocation in the budget. For the 2011 budget we have earmarked a total sum of N9,434,980,000.00 (Nine Billion, Four Hundred and Thirty-Four Million, Nine Hundred and Eighty Thousand Naira) to this sector in the capital budget. This represents 23.16% of the capital budget.

The following sub-sectors shall be addressed under the social service sector:

(a) Education Sub-Sector

One of the key programmes of this administration is the provision of free and qualitative education from the Primary to Secondary School level.

We have thus taken decisive action in reducing the fees paid by students of our State-owned higher institutions. This will reduce the burden of parents and guardians, and go a long way in stimulating academic excellence by our students and thus increase our rankings among the committee of states in common examinations.

A total sum of N3,808,500,000.00 (Three Billion, Eight Hundred and Eight Million, Five Hundred Thousand Naira) representing 9.35% of the total capital budget has been allocated to education in the 2011 capital budget. Below is the distribution of capital allocation to Education in the 2011.

(i) Ministry of Education

N448,500,000.00

(ii) School Enterprise Project

N50,000,000.00

(iii) State Universal Basic Education Board (These amounts include Counterpart Funding)

N1,300,000,000.00

(iv) Board for Technical Education N140,000,000.00

(v) Tertiary Education

(the sum of Five Billion, Eight Hundred and Sixty Million Naira) has been set aside as both capital expenditure and subventions to our tertiary institutions.)

N5,860,000,000.00

The budgetary provision for the Education sector (both recurrent and capital) in the 2011 budget is N14,275,812,173.00 (Fourteen Billion, Two Hundred and Seventy-Five Million, Eight Hundred and Twelve Thousand, One Hundred and Seventy-Three Naira). This represents 19.09% of the total budget.

The details of other projects that will be executed in the education sector shall again be stated by the Honourable Commissioner for Finance during the budget analysis session.

Healthcare Services

It is our belief that a healthy citizenry is a prerequisite for any meaningful social and economic transformation. Already, the healthcare programmes of this government had been publicly presented. The components include free medical services for children, pregnant women, the physically challenged and senior citizens. We shall also ensure the establishment of primary healthcare centers in all communities that are yet to have any during the next year, while increasing the capacity of existing ones to meet the varied healthcare needs of our people. This administration shall also work with development partners and all stakeholders in ensuring wide and intense immunization coverage, in order to decrease infant mortality rates in Ekiti State. In addition, we plan to hold regular free healthcare delivery missions, targeted at grassroots communities all over Ekiti State; this would be done in partnership with NGOs, health organizations and allied development partners run by Ekiti State indigenes at home and in the Diaspora.

To further strengthen primary healthcare service delivery in the State, this administration shall strengthen existing health training institutions. In line with this, we have approved the up-grading of the School of Health Technology, Ijero-Ekiti to a College of Health Technology. The School will now offer programmes leading to the award of Ordinary and Higher National Diploma Certificates in Health-related courses. Adequate budgetary provisions have been made for the College and also for the construction of additional classrooms, hostels and instructional materials in the School of Nursing and Midwifery, Ado-Ekiti.

I am pleased to inform our good people that Government has put in place a patients-in-transit bus service and an emergency ambulance service scheme to further complement other efforts in health care delivery. Under the programmes, facilities and personnel shall be deployed to provide personalized medicare to our people. In addition, this administration would be deploying ambulance services to all the 21 (Twenty One) General Hospitals across the state, to offer emergency ambulance service.

Some of the projects in the Health sector are:

(a) Capital Projects in the Ministry of Health (few of them are listed below)

N1,232,000,000.00

(i) Purchases/Installation of equipment at State Specialist Hospital/General Hospitals

N200,000,000.00

(ii) Infrastructural Development in General Hospitals and establishment of Staff Medical Centre

N215,000,000.00

(iii) State Ambulance Services

N85,000,000.00

(iv) State Health Data

N50,000,000.00

(v) Ophthalmology Centre (including payment of CUBAN Doctors)

N150,000,000.00

(vi) Purchase and Installation of X-ray Facilities at State Specialist Hospitals/General

Hospitals

N72,000,000.00

(vii) Completion of General Hospital, Ado-Ekiti

N296,900,000.00

(b) Capital provisions were also made for the following health sectors:

(i) Primary Health Care Development Agency

N300,000,000.00

(ii) Central Medical Store

N62,000,000.00

(iii) Hospitals Management Board

N29,480,000.00

(iv) State Action Committee on Aids (SACA)

N115,000,000.00

(v) Teaching Hospital, Ado-Ekiti

N800,000,000.00

The total recurrent and capital allocation to Health sector in the 2011 Budget is. N8,082,657,605.00 (Eight Billion, Eighty Two Million, Six Hundred and Fifty Seven Thousand, Six Hundred and Five Naira). This represents 11% of the total budget. Full details shall be presented by the Honourable Commissioner of Finance and Economic Planning during the budget analysis.

Information Services

Distinguished Honourable Members, as a mark of our commitment to the effective dissemination of information in the State, this administration shall ensure that the Broadcasting Service of Ekiti State come on Air before the end of the out-going year. This administration shall also continue to support other media Houses in the State. A total sum of N1,213,000,000.00 (One Billion, Two Hundred and Thirteen Million Naira) is earmarked in the 2011 capital projects in the Information Sub-sector.

(a) Broadcasting Service of Ekiti State (BSES)

It is the view of this administration that the output of BSES is sub-optimal. This is however not a reflection of the quality of personnel, and the pedigree of our Ministry of Information, Communication and Strategy. It is our objective to restructure this organization to take its place as a veritable platform for information dissemination, and revenue generation for Ekiti State. In setting BSES on the path of self-sustainability and viability, the sum of N600,000,000.00 (Six Hundred Million Naira) has been set aside for the procurement of vital equipment for its operations.

(b) Ministry of Information, Communication and Strategy

Information is power! It is our aim to ensure we strengthen the Ministry of Information and Civic Information to fulfill their mandate of keeping the citizenry informed about their civic obligations as well as the programs and policies of the government.

We shall also upgrade the Government Printing Press, with a view to ensuring viability and patronage, not only by government agencies, but also the burgeoning private sector in the state.

(c) Sports Development

Sports development is paramount on the agenda of this administration. We shall bring back the glorious days of exciting sporting activities all round the year, as a way of engaging our youth and bringing glory to the state in National and International competitions.

In view of this, the total sum of N350,000,000.00 (Three Hundred and Fifty Million Naira) is being set aside for this sector in the next fiscal year. N170,000,000.00 (One Hundred and Seventy Million Naira) shall be devoted to the completion of Oluyemi Kayode Stadium, while another N20,000,000.00 (Twenty Million Naira) shall be set aside for the Sports Academy and the construction of Lawn/Table Tennis Courts. Indoor Sports Hall at Oluyemi Kayode Stadium shall also be up-graded at a sum of N20,000,000.00 (Twenty Million Naira). This administration shall also rehabilitate Ikere, Ijero and Ikole Stadia. Ultimately, this administration is still desirous of having an Olympic standard stadium, and we shall make this possible as soon as practicable.

We shall also reinvigorate the school sports system within the year with a view to heightening healthy rivalry among schools in Ekiti State.

(d) Women Affairs/Youth Empowerment

In line with our commitment to gender equality and youth development, this administration shall give priority to Women and Youth activities in Ekiti State in the year 2011. Our women shall be given the required logistics and support to strengthen existing gender based programmes, while developing new programmes aimed at empowering and protecting the interest of the women of Ekiti State. Working with development partners within and outside Ekiti State, we shall ensure that issues such as gender based violence against women, work place and all other forms of discrimination against women, shall be reduced to the barest minimum.

Our youth are the blocks on which our future is built. We plan to attract major youth empowerment programs to Ekiti State in 2011, and also develop avenues for productively engaging our youth through competitive activities such as debates, quizzes e.t.c. This administration shall also encourage the discovery and promotion of talent by Ekiti indigenes.

A total sum of N152,000,000.00 (One Hundred and Fifty Two Million Naira) has been set aside in the 2011 budget for women and youth development programmes in the State.

(e) Social Security Scheme

As part of our commitment to provide adequate safety nets for disadvantaged people in Ekiti State, this Administration has made a provision of N1,520,000,000.00 (One Billion, Five Hundred and Twenty Million Naira) for social security grants to less privileged senior citizens in the State, who are of age 65 and above. In line with this, we have already directed the various Local Government administrators to embark on record collection of eligible senior citizens in the respective local governments.

(f) Multiple Birth Trust Fund

To further ameliorate the financial burden associated with multiple births, this administration shall set up a dedicated fund to support affected parents. This initiative is aimed at providing immediate succor to parents with a view to giving the children a good chance of survival.

ENVIRONMENTAL SECTOR

This administration shall vigorously pursue a cleaner and more aesthetically appealing environment across the state. The Environmental Sector shall receive adequate attention in year 2011. To this end, a sum of N3,077,000,000.00 (Three Billion and Seventy Seven Million Naira) or 7.66% is allocated for capital expenditure in the sector in year 2011.

We have also earmarked the sum of N2,000,000,000.00 (Two Billion Naira) as critical intervention funds for the redevelopment of Ado-Ekiti into a model city, and a State Capital of our dream.

GENERAL ADMINISTRATION

Mr. Speaker and distinguished Honourable Members, the General Administration has always been responsible for the central co-ordination of all government activities in the State. It is therefore very important that we do not underrate the roles and function of the department in ensuring the smooth coordination of government activities as we enter the New Year. The total allocation for the Administrative Sector is N8,786,725,488.61 (Eight Billion, Seven Hundred and Eighty Six Million, Seven Hundred and Twenty Five Thousand, Four Hundred and Eighty-Eight Naira and Sixty-One Kobo). This represents 21.88% of the total capital budget.

In order to reduce overhead cost and ensure standardization of procurements, this administration has put in place a new policy of purchasing furniture, office equipment and vehicles centrally.

Internal Security

Right Honorable Speaker and Distinguished Members, our administration is pleased with the atmosphere of relative peace, law and order that prevailed in the State in the out-going year. This was made possible by the efforts and determination of the law enforcement agencies who were always on the alert.

Our Royal Fathers were also supportive as they ensured that peace reigned supreme in their respective domains. Further efforts will be made in the coming year to make the State crime free. Our administration will within its limited resources, provide logistics for our law-enforcement agencies, to enable them perform optimally. It is also our intention to set up the ‘Rapid Security Monitoring Unit’ with the assistance of the Nigerian Police Force, aimed at improving the security of lives and property in Ekiti State. I enjoin the peace loving people of Ekiti State to volunteer useful

information to the law enforcement agencies so as to guarantee the security of lives, investment and property.

The Legislature

I wish to express my sincere thanks and appreciation to this Honourable House for laudable achievements recorded so far. This administration welcomes the support of this Honourable House, in collaboratively building a model State of our dream. Consequently, we shall continually accord the house due respect at all times.

A total Budget of N1,828,870,197.00 (One Billion, Eighty Hundred and Twenty-Eight Million, Eight Hundred and Seventy Thousand, One Hundred and Ninety-Seven Naira) is allocated for both the recurrent and capital expenditure of the House in 2011.

It is my pleasure to also state, that the 2011 budget has made provision for the completion of the House of Assembly Complex.

The Judiciary

This administration is very conscious of the importance of the Judiciary as the third arm of Government. Adequate funding shall be given to the Judiciary to make it function more effectively. A total sum of N1,120,000,000.00 (One Billion, One Hundred and Twenty Million Naira) is allocated for both the recurrent and capital expenditure of the Judiciary in the next fiscal year.

CONCLUSION

Mr. Speaker Sir, Honourable members of this distinguished house, the budget I have just presented represents the plan, policies and programmes that our administration has designed to achieve the collective aspirations of the good people of Ekiti State in the year 2011. I want to assure you that our administration will do everything possible to ensure that this budget is faithfully implemented. The Honourable Commissioner for Finance and Economic Development will give further detailed analysis of the budget as soon as the document is passed by this Honourable House.

Based on the aforementioned lofty objectives and the need to build on the gains of democracy that we are currently enjoying, it is my honour and pleasure to christen the 2011 budget as “BUDGET OF RENEWAL”. It is our prayer that God in His infinite mercies will guide us through the implementation of the budget so that there will be delivery of more public goods and services to the good people of our State.

THANK YOU AND GOD BLESS YOU ALL. DR. JOHN ‘KAYODE FAYEMI GOVERNOR EKITI STATE, NIGERIA