Kano budgets N151bn for minimum wage payment

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Kano budgets N151bn for minimum wage payment

CHIGOZIE AMADI

The Kano State government has set aside N150,996,352,990.82 for the payment of monthly salaries and allowances to civil servants and political officeholders in 2025.

Governor Abba Yusuf, on Friday, November 8, 2024, presented a proposed budget of N549,160,417,663.00 for 2025 to the state House of Assembly.

The Commissioner for Planning and Budget, Musa Shanono, while addressing newsmen on Monday, said the amount earmarked for salaries and allowances was based on the approval of the new minimum wage policy by the governor.

“The amount is out of the proposed recurrent expenditure for the 2025 fiscal year, which is estimated to be N236,525,504,990.82, representing 43 per cent of the total estimated budget size.

“The total recurrent expenditure for the upcoming fiscal year 2025 is estimated at N236,525,504,990.82 representing 43 per cent of the total budget size.

“Out of this, the sum of N150,996,352,990.82 is dedicated for the payment of monthly salaries and allowances to the civil servants and political officeholders in the state, based on the approval of the new minimum wage policy by His Excellency, Governor Abba Kabir Yusuf.”

Shanono added that the proposed overhead costs for ministries, departments and agencies were estimated to be N75,567,346,000.

“For MDAs running cost, critical priority payments are based on the standing order approved by His Excellency to MDAs, while the payment of debt service is to the sum of N9,961,805,000 for the fiscal year 2025,” he said.

Shanono described the size of the proposed 2025 budget as N549,160,417,663.00, with the capital expenditure component standing at N312,634,912,672.18, while the recurrent expenditure was set at N236,525,504,990.82.

The commissioner disclosed that the total recurrent revenue expected to be collected for the fiscal year 2025 was estimated as N449,092,680,142.00, adding that it consisted of N75,718,779,890.00 as Internally Generated Revenue and N373,373,900,252.00 from Federal Account Allocation Committee.

“The total recurrent revenue is higher than 2024 by N69,330390,567.00, representing an 18 per cent increase,” he said.

The commissioner said the administration would continue to use available resources to pursue major programmes and projects in 2025.

“Pursuant to the above, the sum of N312,634,912,672.18 is dedicated for capital expenditure, representing 57 per cent of the total budget size, to finance projects and programmes across the state,” he said.