FCTA Presents N502.9 Billion 2023 Statutory Budget Estimates to NASS
By: Daniel Achiniru
The Federal Capital Territory Administration (FCTA) has presented a N502.9 billion statutory budget proposal to the National Assembly for the 2023 fiscal year.
Making the presentation on Tuesday, April 4, 2023, at a joint session of the Senate and House of Representatives Committees on the FCT, the FCT Minister disclosed that the fiscal framework of the sum of N502,958,983,377 comprises distributable revenue of N330,705,929,297 and non-distributable revenue of N172,253,054,079.
An overview of the 2023 FCT budget shows that 307,947,115,280, representing 61.21 percent of the N502,958,983,377, 2023 budget proposal has been earmarked for capital expenditure, while overhead costs will gulp the sum of N116,976,164,567 representing 23.26 percent. The balance of N78,135,703,531 representing 15.54 percent is proposed for personnel cost.
The proposed N307.9 billion capital expenditure component of the budget, the Minister disclosed will go to the development of infrastructure with emphasis on completion of on-going projects.
Thus, out of this sum, N154 billion is earmarked for completion of ongoing projects in the FCT, while N2 billion is for critical new projects, while the remaining N150 billion will go to the repayment of the rolled over SUKUK loans projects.
Some of the projects that will benefit from the capital expenditure include the Abuja Light Rail Project, the rehabilitation of 100 schools, the Greater Abuja Water Supply scheme, rehabilitation and expansion of the Outer Southern Expressway, expansion of Inner Southern Expressway and Construction of Southern Parkway from National Ecumenical Centre, B6, B12.
Others are the reconstruction and dualization of Lower Usuma Dam-Gurara road, construction of access roads for Abuja Light Rail Stations, resurfacing of existing roads and provision of emergency works in the FCT.
The 2023 statutory budget also makes provision of funds to commence the provision of engineering infrastructure to the Maitama-II District.
Sectoral highlights of the FCT 2023 Statutory Budget proposal also shows that N52 billion is proposed for the Education sector, N36.9 billion for the Health sector, N11 billion for the Environmental sector, N8.9 billion for the water sector, N8.2 billion for the Agricultural sector and N6.9 billion for the Social Development Secretariat.
Others are N2.8 billion for the Legal Services Secretariat, N2 billion for the Abuja Geographic Information Systems (AGIS) and N5.4 billion for the Area Council Services Secretariat.
The FCT Minister explained that the 2023 Statutory Budget proposal is sequel to deliberations with all the revenue generating agencies of the FCTA; adding the budget preparation also aligned within the context of the Medium-Term Expenditure Framework (MTEF), the Medium Term Development Plan (MTDP) of the Federal Government and International Public Sector Accounting Standards.
The Minister also disclosed that 2023 statutory budget proposal of N509,958,983,377 is a reduction of the sum of N104,993,040,202 billion representing 17 percent of the 607,952,023,580 budgetary appropriation made in 2022.
Accordingly, the decrease, the Minister added, is due to some ongoing projects that have been taken care in the 2022 budget.
Briefing the Lawmakers on the performance of the 2022 budget, the Minister stated that an appropriation of N607,952,023,580 was made to the FCT in its 2022 Statutory Appropriation Act with an actual receipt of N233,476,857,437 representing 38 percent of the budget and expenditure of N200,818,799,294 as at December 2022.
The Minister, however, appealed to the National Assembly to strengthen legislations governing property tax in the FCT to provide a clear cut demarcation between the functions of FCTA and the Area Councils in order to remove the blurred areas.
In the same vein, the Minister also called for legislation to regulate the mining of solid minerals in the FCT in order to improve the revenue profile of the nation’s capital, protect the environment and respect the communities of the FCT.
He thanked the lawmakers for their tutelage during the last seven and half years of his tenure as Minister of the FCT, and called for their continued guidance and support as he leaves office.
Earlier in his remarks, the Chairman of the Joint Session of the National Assembly Committees on FCT, as well as the Chairman, Senate Committee on FCT, Senator Smart Adeyemi disclosed that the joint session was held to deliberate the provisions of the 2023 statutory budget proposal and evaluate the performance of the 2022 Appropriation as part of constitutional requirements.
Senator Adeyemi observed that there were a lot of areas in the FCT with potentials to raise revenues that have not been explored; adding that there is need to expand the revenue net of the FCT to cater for the increasing demand for services in the nation’s capital as a result of the increasing influx of people.
The Deputy Chairman of the House of Reps Committee equally drew the attention of the FCT Minister to the issues of flooding and proliferation of shanties, to which the Minister reassured that adequate steps have been taken to address the issues.
Other dignitaries who were present during the Joint session include the FCT Minister of State, Dr. Ramatu Tijjani-Aliyu, the FCT Permanent Secretary, Mr. Adesola Olusade, the Executive Secretary FCDA, Engr. Shehu Ahmad Hadi, the Deputy Chairman, House of Representatives Committee on FCT, Mrs. Blessing Onu, Senators and members of the Senate and House of Representatives Committee on FCT, among others.