The Governor of Adamawa State, Ahmadu Fintiri, has signed the state’s 2021 appropriation bill worth N140 billion into law.
This is according to a report by the News Agency of Nigeria. The budget tagged ‘’Budget of Stabilization’’ was presented by the Governor to the State House of Assembly on Monday, November 23, 2020.
The 2021 Budget of the state, worth a combined total of N140,034,404,449 is made up of recurrent expenditure of N67.216 billion, representing 48% of the overall budget size, while the remaining N72.818 billion is reserved for capital expenditure projects, representing 52% of the overall budget size.
What they are saying
Commenting on the recent development, the Governor said:
- “This is crystal budget of stabilization which will see to more value addition, more infrastructure development to our people and human capital development for the sustenance of our democracy. Democracy without physical infrastructure will not carry us anywhere. For us to develop the democracy, we need to work tirelessly with the available resources.
Commenting on the rationale for opting for the tag, stabilization budget, the Governor said:
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- “In 2020 we witnessed lots of economic challenges due to COVID-19 pandemic.”
Expressing optimism over the capacity of the budget to effect necessary development in the state, the Governor assured the people of the required infrastructure like roads, schools, hospitals and the human capital development in 2021.
What this means
With a higher allocation to capital expenditure, it is pertinent to note that the budget on prima facie, aims to resuscitate the economy and stimulate development of the state through increased government capital spending, which in Keynessian economics, will increase aggregate demand and stabilize local prices, warding off recessionary impacts.